IRS Narrows CWA Eligibility - 07/19/18
The Internal Revenue Service (IRS) has announced that starting October 1, 2018 nonresident performers will only be able to qualify for a Central Withholding Agreement (CWA) if they individually earn $10,000 or more in gross income within the calendar year. This threshold also applies to groups, in that each individual member applying for a CWA must accrue at least $10,000 (including per diem payments).
Anyone who does not qualify for a CWA is subject to 30% withholding. The change is reflected in the IRS Instructions for Form 13930, as well as on the IRS webpage on CWAs. Please check back for additional news and guidance as more information becomes available.