Can Wesleyan pay an agent or intermediary on behalf of a non resident alien?
Yes. If making payment directly to a U.S. agent and it is known that the beneficial owner (the person performing the services) is a non resident, withholding of 30% is necessary, unless a tax treaty applies. If a tax treaty applies, it must be signed by the beneficial owner. This rule was included in the most recent regulations because foreign nationals have historically used U.S. agents as a simple way of evading U.S. income taxes on their U.S. earnings. The 1042-S is issued in the beneficial owners name, even though the payment is made to the agent/intermediary.
