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Report commission paid to a person without a SSN?

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jjv3131

Junior Member
What is the name of your state (TEXAS)?

Good afternoon, I have a question about how to report to IRS a 20% commission being paid to person without SSN.

My dad has a local TV show, he pays the TV station for the air time and gets receipts and all documents required. My dad has a sponsor from U.S. that was acquired through a person from mexico that has his visa but does not have a SSN. The sponsor is client to this person from mexico and weekly sponsor checks are made out to my dad's name and from that he cashes the check to pay station and pay the person his 20% commission. I thought that maybe he could start paying the person with checks under the persons name and just keep track to report at the end of the year. Someone else told me to file the form "ITIN".....what is the best way to go about this?

thank you for your help.
 


FlyingRon

Senior Member
The person you are paying (not you) is required to provide the TIN on a W-9. As a foreign national they can apply for an ITIN for such purposes.

If they do not provide this, then you are required to withhold 28% of the money paid them and remit it to the feds.

http://www.irs.gov/pub/irs-pdf/p1281.pdf
 

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