101: Nonprofit Basics: International Grantmaking Part 2 - Income Tax Withholding Rules

Welcome to EO Radio Show - Your Nonprofit Legal Resource. Today's episode is the second in a three-part series addressing several critical compliance topics relevant to international grantmaking by U.S. public charities and private foundations. These are the anti-terrorism rules, the income tax withholding rules, and special rules for private foundations.

In episode 99 of the show, I launched this series with an episode focused on introducing the Patriot Act rules that apply to all grants, international and domestic, but there are particular interests when we're talking about international grantmaking.

In this episode, I'll provide a brief overview of the income tax withholding rules that apply to payments for services and that come into play when making a grant to an international organization that provides some services in the United States.

The third installment of this series will focus specifically on the special private foundation rules, which are expenditure responsibility, equivalency determination, and other techniques used by private foundations that make grants to international organizations.

Show Notes:

Farella YouTube podcast channel

IRS "About Form 1042"

About Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Organizations 

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DISCLAIMER: This podcast is for general informational purposes only. It is not intended to be, nor should it be interpreted as, legal advice or opinion.