The IRS will soon announce details regarding a much anticipated change in the Central Withholding Agreement Program. Today the IRS made the following announcement:
“The IRS Central Withholding Agreement (CWA) program will be offering a new simplified application process for applicants earning less than $10,000. There will be a simplified CWA application Form 13930-A that applicants will complete to apply for the simplified process. Under the new process, applicants earning less than $10,000 would be eligible to apply for a CWA. The Form 13930-A is scheduled to be released in draft form for public comment shortly.”
IMPORTANT: The $10,000 threshold still currently applies. No further details are currently available regarding the timeframe for implementing the new process. Further information will only be available when the IRS posts the draft Form 13930-A and instructions for public review and comment.
The CWA program allows for foreign performers to legally manage and often reduce the required 30% withholding on U.S. earnings. As of October 1, 2018 the IRS implemented a new policy under which nonresident performers would only qualify for a Central Withholding Agreement (CWA) if they individually earn $10,000 or more in gross income within the calendar year. This rule change has had a massive negative effect on independent artists, so last November, The League of American Orchestras, Tamizdat, and CWA Management prepared a proposal aimed at addressing the inequities of the new policy. The proposal was presented to the IRS with the endorsement of many major U.S. performing arts organizations. The IRS has responded favorably to our proposal.
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