IRS Announces Progress on Simplified CWA; More Details Soon - (06/18/19)
Details will soon be announced about relief for foreign guest artists seeking to confirm taxes due for work performed with U.S. arts organizations. Late last week the IRS made the following announcement:
“The IRS Central Withholding Agreement (CWA) program will be offering a new simplified application process for applicants earning less than $10,000. There will be a simplified CWA application Form 13930-A that applicants will complete to apply for the simplified process. Under the new process, applicants earning less than $10,000 would be eligible to apply for a CWA. The Form 13930-A is scheduled to be released in draft form for public comment shortly.”
No further details are available regarding the timeframe for implementing the new process. Further information about the application process and requirements will be available when the IRS posts the draft Form 13930-A and instructions for public review and comment.
As of October 1, 2008 the IRS implemented a new policy by which nonresident performers would only qualify for a Central Withholding Agreement (CWA) if they individually earn $10,000 or more in gross income within the calendar year. A proposal was submitted to the IRS to reinstate CWA eligibility, with the endorsement of many major U.S. performing arts organizations. IRS management responded favorably to the proposal and have been working on developing a streamlined CWA process.
Please note that the $10,000 threshold still currently applies. As soon as the IRS announces details of the new policy and implementation date, news of it will be posted here on Artists from Abroad.