A client has been short paid by a US customer and supplied with a 1042-S form showing $46.35 withheld as Federal tax.
How does he get that back?
Replies (5)
Please login or register to join the discussion.
It depends on what it was withheld from. What Code was used? If I was withholding on, say, dividends, the client would claim credit in the UK.
For 2014 Code 12 was Royalties. The company can file a US corporate return Form 1120-F to reclaim the withholding tax arguing that it is treaty exempt. Printing paper, toner and postage may exceed the cost of preparation.