Help for Foreign Athletes and Entertainers
Generally, if you are a nonresident alien entertainer or athlete performing independent personal services or participating in athletic events in the United States, you are subject to 30 percent withholding of gross income.
You may be able to enter into a Central Withholding Agreement (CWA) with the Internal Revenue Service (IRS) for reduced withholding provided certain requirements are met. A CWA can help non-resident entertainers and athletes who plan to work in the U.S. because it provides for the correct amount of withholding based upon net income at graduated rates.
To help with the CWA process, the IRS released Form 13930 Application for Central Withholding Agreement (CWA). Note: You must submit an application for a CWA at least 45 days before the first event covered by the CWA to allow for timely evaluation. An application received by the IRS less than 45 days before the first event covered by the application will be denied and returned to the applicant.
For more details about the CWA program, including the application requirements and process, see Central Withholding Agreements.
- Frequently Asked Questions (FAQs) About Central Withholding Agreements
- Taxation of Foreign Athletes and Entertainers