Quote:
Originally Posted by Jet Set Cat
Thank you Richard for a response from someone who actually did some research.
Its true business are not required to withhold from independent contractors but they are required to have the contractors SS# or FIN number and other information available for tax purposes.
Something they can not obtain from foreign workers and that is why they are required to withhold 30% of money sent to foreign workers. It?s done because once the money leaves the US they have no way of taxing it;
I don?t know what is so difficult to understand.
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i think the w8 with the correct tax number will nullify withheld amount requirements.
however, the contradictions of information here should go a long way to convince anyone to talk to a lawyer regarding taxes and tax laws.