Foreign Clergy Honorarium

[anu31402]

I have a Church client who invited a Pastor from a country outside of the US. He was paid honorarium of $5,000. The visiting clery does not have any US SSN or ITIN identification. What Form do I have him filled (signed) for tax withholding and reporting?
US does not have any tax reciprocacy treaty with the foreign country in question.

Thanks

Kay, EA

[Koss]

Foreign Person's US Source Income

Form 1042-S



Good luck with this one.


BMK

[MAMalody]

The church should issue a 1099-MISC, reporting the $5,000 in box 7. The SSN box will be left blank and the church could be fined ($50-$100) for paying someone that did not provide his SSN to the church and not doing backup withholding (28%). A nonresident alien is subject to backup withholding unless the church has a signed Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding, on file for him. For the future, the visiting pastor could apply for an individual taxpayer identification number (ITIN) by filing IRS Form W-7.

[anu31402]

Thanks all for your advice.

Kay, EA