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Do you need a Central Withholding Agreement? Call me.

August 28, 2012

Are you a non-resident athlete or entertainer? Let GAI (www.gunwel.com) help!

CWA – Central Withholding Agreement

Withholding Agent: Let Gunwel Associates act as your Central Withholding Agent

We will:

  • Develop a budget with the IRS; allowing for a Central Withholding Agreement
  • Maintain the budget and report to the IRS; keeping withholding at a minimum
  • File forms 1042/ 1042S for all CWA income and for each tax year
  • Make all deposits required by the CWA
  • File 1040NR for each individual

CWA

IRS Revenue Code Section 1441 requires that 30% of gross income be withheld for foreign athletes or entertainers UNLESS a Central Withholding Agreement (CWA) is submitted to the IRS at least 45 days prior to receiving income.

Income is not only performance income, but any income from the tour including merchandise sales etc.

Withholding at the source could include the booking agent, promoter, or venue, as well as any person having control of items of gross income.

A CWA agreement, however, allows withholding to be paid on net income even if withholding is -$0-! It also allows central control and coordination of withholding payments by one party…the Central Withholding Agent (GAI).

Give us a call today at 615-730-9444 or stop by and visit (www.gunwel.com) and we can become your CWA. See you soon!

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