IRS Releases Draft Simplified CWA for Public Comment - 07/18/19 (UPDATED 8/8/19)
8/8/19 Update: Several U.S. nonprofit arts stakeholders collaborated on joint comments, which have been submitted for public record. As soon as the IRS announces the final details of the new policy and an implementation date, news will be shared directly here on Artists from Abroad.
The IRS has announced a draft approach to a streamlined CWA process for foreign guest artists seeking to confirm taxes due for work performed with U.S. arts organizations.
In June, 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.”
In July, the IRS posted Form 13930-A Draft Form, the potential new simplified application for nonresident alien athletes & entertainers earning less than $10,000. This form is now available for public comment on the IRS Draft Forms Website (click here if you cannot view the draft form from the IRS webpage) and comments may be submitted via email to Simplified CWA by August 4, 2019. Several U.S. national nonprofit arts organizations and practitioners are reviewing the form and will submit coordinated comments. As yet, an implementation date has not been proposed.
No further details are available regarding the timeframe for implementing the new process.
As of October 1, 2018 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 the final details of the new policy and implementation date, news of it will be posted here on Artists from Abroad.