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We Help You Avoid Over-withholding of U.S. Income Tax

CWA Management, negotiates with the IRS on behalf of nonresident alien athletes and entertainers. We develop and execute Central Withholding Agreements (CWA) that limit over-withholding of income earned from U.S. performances and appearances, as well as endorsements, sponsorships and other sources.

    • With a CWA
      • U.S. income tax is withheld only on projected NET income and is withheld by only one designated withholding agent.
    • Without a CWA
      • Internal Revenue Code Section 1441 requires that 30% of projected GROSS income for nonresident alien athletes and entertainers be withheld at the source and deposited for these performers in the U.S. Treasury.

Withholding at the source may include the venue, promoter, booking agent, and any other person having control, receipt, custody, disposal or payment of any items that constitute gross income. Without coordination from a designated central withholding agent, multiple withholdings could take place.

Here’s What CWA Management Can Do For You

  • Ensure your compliance with IRS requirements.
  • Work with you to develop a detailed performance budget.
  • Negotiate a Central Withholding Agreement with the IRS.
  • Deposit transactions required by the executed CWA.
  • File Form 1042 and Form 1042-S for the tax year and income covered by the CWA.

Why Choose CWA Management?

  •  Focus – We are one of the first companies in the U.S. to specialize in negotiating and executing Central Withholding Agreements with the IRS.
  • Knowledge – CWA Management is led by two partners who have both established longstanding, successful careers in financial management and, tax and accounting services.
  • Service – Not only do we know what to do, we also know how to provide service you can depend on. We take your business seriously. We represent your interests with the IRS. When you have questions, we get you answers in a timely and thorough manner. And, when we represent your interests with the IRS, you can expect exacting attention to detail, every step of the way.
  • Integrity – Personal and professional integrity is non-negotiable. We take our commitment to clients seriously and unfailingly serve you with the highest ethical and professional standards.