IRS Announces New Interim Requirements for Nonresidents Who Wish to Obtain ITINs!!

By Robyn Guilliams

The IRS announced on Friday that it is changing (or in the IRS’s words, “strengthening”) its procedures for obtaining an Individual Tax Identification Number (“ITIN”).  Unfortunately, these new procedures may make it more difficult for foreign artists filing tax returns from abroad to obtain ITINs and stay in compliance with U.S. tax law.

Individuals who have earned compensation for work performed in the U.S. are required to file U.S. tax returns to report that income, even if no U.S. tax is due.  And to file a tax return, an individual must have a U.S. tax identification number.  There generally are two types of tax identification numbers for individuals filing U.S. returns – Social Security Numbers (SSNs), and ITINs.

As many of you know, SSNs may be obtained by nonresident individuals ONLY by applying in person, at a Social Security Administration office in the United States.  And, many also are painfully aware that there are onerous time restrictions for individuals applying for SSNs – in effect, an individual must wait 10 days after arriving in the U.S. to apply for a number, AND the individual must have 14 days of work authorization remaining on his I-94 card at the time of applying for an SSN to be eligible for the SSN.  So, if an artist is here in the U.S. for less than 24 days, obtaining an SSN is practically impossible.

The alternative for these individuals is to request an ITIN at the time of filing a U.S. tax return.  Along with the one-page W-7 ITIN request form, the IRS requires a nonresident individual to submit proof of his or her identity and “foreign status” to obtain an ITIN.  This proof can take the form of a certified copy of the individual’s passport alone, or copies of two of the following: 1) a current national ID card (that includes the individual’s name, address, photograph, date of birth and expiration date); 2) a foreign voter registration card; and 3) a civil birth certificate.  In the past, the IRS has allowed copies of these documents to be certified by a U.S. notary, by a foreign “apostille” (a foreign notary seal recognized by the Hague Convention), or by the government agency that issued the document.

Effective immediately, however, only copies of documents certified by the agency that issued that document will be accepted with ITIN requests.  The IRS will no longer accept passport or other copies that have been certified by U.S. or foreign notaries.  So, for instance, if an individual wishes to submit a copy of his passport as proof of his identity and foreign status, the individual must obtain a copy of the passport certified by whatever government agency issued that passport.

Note that this new “strengthened” procedure is in place only until the end of this year, when the IRS will issue "NEW" guidelines for obtaining ITINs.

The IRS has posted additional information on its website to address additional questions regarding the new procedure.  This information may be found at: http://www.irs.gov/newsroom/article/0,,id=258474,00.html

What does this mean for foreign artists who will be required to file U.S. tax returns, but do not yet have a U.S. tax identification number?  If at all possible, the artist should try to apply for a SSN while in the U.S.  This can difficult due to tight touring schedules, but doing so may be simpler than obtaining documents certified by the appropriate government agency, depending on the artist’s country of citizenship.  The alternative will be to obtain documents (e.g., passport copies) that are certified by the government agency that issued the documents, at least through the remainder of 2012.  When the new ITIN guidelines are issued for 2013 (most likely late this year), we will certainly let you know what the new, permanent guidelines will be, and how those new guidelines will affect foreign performers!

ARTISTS FROM ABROAD has been Updated, Re-Designed, and Re-Launched!

The  League of American Orchestras and Association of Performing Arts Presenters, in conjunction with FTM Arts Law, are pleased to announce the re-launch of ARTISTS FROM ABROAD
 
Relied upon by thousands as the most complete and up-to-date online resource for engaging foreign guest artists and non-US arts professionals, artistsfromabroad.org provides essential guidance, forms, sample documents, and useful links.

Seriously....this is it! Everything you ever wanted to know about visas and taxes for foreign guest artists all in one spot--now fully updated and re-designed.

Authored by Jonathan Ginsburg and Robyn Guilliams of FTM Arts Law, the newly redesigned and re-launched website makes it even easier to find the information performing arts organizations and artist managers need to successfully navigate the U.S. visa and tax procedures required when engaging international artists for performances in the U.S. The new site includes:
 
* RSS feed that can automatically notify you of site updates
* Improved, intuitive navigation
* Updated content and links throughout!

Bookmark ArtistsFromAbroad.org today!

The Truth About Industry Standards

The following was posted on March 21, 2012 on FTM Arts Law's blog "Law and Disorder: Performing Arts Division" which can be found on MusicalAmerica.com:

The Truth About Industry Standards

By Brian Taylor Goldstein

Dear FTM Arts Law:

I was recently reviewing a contract I received from an agent. When I asked for some changes, she told me that her contract was “industry standard” and that nothing could be changed because that’s the way everyone does it. In the future, I don’t want to waste anyone’s time or appear like I don’t know what I’m doing. Are there industry standards for certain types of contracts? Where can I learn what is and is not legally required?

Do not mistake “industry standard” for “legally required.” Something which is “legally required” is mandated by statutes or regulations—such as visas, taxes, licenses, or permits. The term “industry standard”, on the other hand, usually means: “This is how I’m used to doing it and I’d rather not change.” Too often, its employed as a form of peer pressure to make you feel that you have no right to make counterproposals, counter offers, or suggest a new or different way to structure the deal or transaction. Nothing could be further from the truth! The only industry standards in this industry are that there are NO standards! This is not to suggest that there are not ways to structure some deals and transactions that are more common than others, but even a common practice or custom does not mean that it is unchangeable. More significantly, if you polled a cross section of performing arts professionals about any given topic, you will find a significant divergence of opinion as to what is and what is not “standard”. In other words, just because someone has done something a certain way for 20 years does not mean that’s the way everyone else must do it, much less you. It may be “standard” for that individual or organization, but it doesn’t make it “standard” for anyone else.

In your question, you don’t mention the specific terms that were at issue. Depending on the circumstances, what you were asking for may have been completely reasonable or completely ridiculous. But that really doesn’t matter. Perhaps more than in any other industry, the arts is based on relationships and success depends on the health and strength of those relationships. When entering into any arts-based relationship, you should always feel free to ask questions, propose new ways of doing things, and think creatively. This does not mean you will get what you want. That will depend on negotiations and the negotiating positions of the parties. If you need to licensing rights from another party or want to work with them more than they want to work with you, its to be expected that they may counter any or all of your proposals with “take it or leave it.” However, that’s not because of any predetermined “industry standard”, its just that they may be in a better position than you are to dictate the terms they want. That’s not necessarily unfair, its just reality. In response to an attorney who once presented me with a contract which he insisted was “industry standard”, I told him that, according to his “standard”, the artist gets screwed, so we need to pick a better standard. It never hurts to ask!

________________________________________________________________

To ask your own question, write to lawanddisorder@musicalamerica.org

All questions on any topic related to legal and business issues will be welcome. However, please post only general questions or hypotheticals. FTM Arts Law reserves the right to alter, edit or, amend questions to focus on specific issues or to avoid names, circumstances, or any information that could be used to identify or embarrass a specific individual or organization. All questions will be posted anonymously.

"Playing Both Sides of the Net" by Edna Landau

FTM Arts Law is pleased to present industry icon, Edna Landau, who has agreed to be a guest blogger on our site. As most of you know, Edna served as Managing Director of IMG Artists from its founding in 1984 until her departure from the company in December of 2007, during which time she personally managed the careers of some of the world’s most beloved classical artists. We posed the following question: “When you represent an artist, who is the “client”, the presenter or the artist?” Here is her response:

Playing Both Sides of the Net

By Edna Landau

I have often thought that one of the hardest things about being an artist manager is to juggle loyalty to one’s two clients: the artist on your roster and the presenter who you hope will engage your artist. As long as everyone’s needs are in sync, there is no problem. The San Francisco Symphony wants your artist on particular dates, playing the Beethoven Violin Concerto with guest conductor, Herbert Blomstedt. Perfect! Your artist is available, will be playing that very concerto in the same season prior to this engagement and loves working with Maestro Blomstedt. Would that it were that easy all of the time. Let’s look at a few slightly different sets of circumstances:

1. Your artist is contracted to play with the New York Philharmonic on a Tuesday evening in February and has a first rehearsal with the Los Angeles Philharmonic on Wednesday afternoon at 2:00 pm. There is a flight from New York on Wednesday morning, leaving at 7:00 am and getting in at 10:30 am. The orchestra is insisting that the artist must be in L.A. the night before the first rehearsal, especially because of the possibility of inclement weather. The artist is unwilling to give up either engagement and insists that you convince the orchestra that a 10:30 am arrival in L.A. on the day of the first rehearsal should be fine. They argue that in the worst case scenario, they can perform the concerto on only one rehearsal. In this instance, which client do you favor? The manager needs to view the Los Angeles Philharmonic as a highly valued long-term client, with the awareness that taking a belligerent stance that could potentially affect the artistic quality of the scheduled concerts is not wise. If the worst happens, the relationship between manager and orchestra can be seriously compromised and it may also take a long while before the artist is re-engaged. That said, if artist and conductor have performed the work together before and it is not an unfamiliar work to the orchestra, there might be some room to persuade the orchestra to take a chance, since they will presumably still have the dress rehearsal together. If the orchestra doesn’t agree, especially since it can be extremely complicated to change rehearsal orders at the last minute, it is the manager's job to convince the artist that they will actively pursue the next possible opportunity to bring artist and orchestra together.

2. The Toronto Symphony has engaged an artist for subscription concerts. At the time when the contract was issued, they asked for a clause stating that the artist would attend a post-concert reception. The artist’s manager consulted with the artist who asked that the presenter accept wording indicating he would make best efforts to attend. He did not want to be contractually bound in the event he took ill and felt he couldn’t do anything more than the concert. The concert day arrived. The artist learned that very day that his best friend from conservatory days was driving 200 miles to attend the concert and wanted to have dinner afterwards. He would be leaving at 6:00 am the next morning. The artist asked the manager to check with the presenter if it would suffice for him to meet VIP’s in the green room and be excused from the reception. He clearly recalled never having contractually agreed to any post-concert activity. The presenter informed the manager that their largest donor, who had funded the concert, was hosting the reception and would not take kindly to a fleeting appearance by the artist. Their relationship with that donor could also be in jeopardy. Whose arm should the manager twist? Neither. The artist should be reminded that the presenter might well be in a position to re-engage them far into the future and it would behoove them to put their professional priorities first. At the same time, the manager might inquire as to whether the artist could attend for a brief while (not to exceed 30 minutes) and whether the donor could be sure to be accessible at that time. They could also check whether the artist’s guest could attend. If the answer is full reception or nothing, the artist should accede to the request, as it was known from the beginning. If, on the other hand, the artist asked to be excused due to illness, which is presumably obvious to the presenter and the donor, the artist’s health should be of paramount concern and a backstage meet and greet might suffice.

3. An artist of some renown is being engaged for a recital in a major city where there are two suitable venues. One has a capacity of 800 and the other has a capacity of 1500. The artist already played once before in the smaller hall and wants to now play in the larger one because they view it as being more prestigious. The presenter only sold 500 seats to the artist’s last recital and feels it is too big a stretch to move to the larger hall. The risk of losing considerable money is too great and they think it would be far better for themselves and the artist to be able to advertise a sold out concert. The artist wants the manager to hold firm with regard to the larger venue. What to do? No manager wants to see a presenter lose money and an artist shouldn’t either. If the artist is adamant, one solution might be for the manager to propose a box office split in the larger venue that would ensure that the presenter’s reasonable and well documented expenses are covered, with the artist receiving an agreed upon fee (perhaps what they would have received in the smaller hall). Any remaining box office income could then be split by the two parties as agreed. The manager will want to stay on top of the presenter's venue and marketing costs and the presenter may request that the artist offer a program that is not their most esoteric. Some presenters might prefer not to share their event budget with the manager but rather to pay a guaranteed fee plus bonus payments when certain pre-established levels of ticket sales are reached.

In the thirty plus years I worked in artist management, I never had any doubt that the artist was my primary client (hence the job description ARTIST manager). I never pushed an artist to play particular repertoire because I knew that making a sale depended on it. At the same time, I never underestimated the importance of cultivating presenter relationships and doing everything possible to please them. Underlying every decision was a sense of privilege that so many important artists trusted me with their representation and believed that I would put their needs first and work with them to reach the best solution in all challenging situations. I hope that all artist managers concur with this approach, no matter how difficult the current economic climate may be.

© Edna Landau 2012

www.ednalandau.com

___________________________________________________

Edna’s many years of dedication to the arts and the field of arts management have been the subject of a CNN documentary on their series entitled "Movers", broadcast internationally in the year 2000. She was also featured in New York Magazine's May 15, 2006 issue entitled "The Influentials" in which she was described as "the intensely coveted, hugely devoted grande dame of New York managers who inspires a rare level of trust and commitment from her clients." In January of 2008, the International Society of the Performing Arts awarded Ms. Landau their International Citation of Merit, recognizing her Lifetime Achievement in the performing arts. In 2009, she was appointed to the Board of Directors of Chamber Music America.

Edna is currently available to provide private consulting services for artists, ensembles, and organizations. She also writes "Ask Edna", a free weekly career advice blog hosted by www.MusicalAmerica.com. For those looking for wise, sensible, and valuable career and organizational advice in the performing arts industry, look no further. You can visit Edna’s website at www.ednalandau.com.

Washingtonian Magazine Names Brian Goldstein to its 2011 List of Best Entertainment Lawyers

Washingtonian magazine has named Brian Taylor Goldstein to its 2011 list of Washington's Best Entertainment Lawyers. Brian was named as one of the "Stars of the Bar" in the area of Performing Arts and Entertainment and was recognized as among the top 10 "dealmakers" who "represent authors, athletes, and other clients in media and the arts."

The Washingtonian's "Best Lawyers" list, which is now available in the December 2011 issue, highlights "the very best in legal talent" within the Washington, DC metropolitan area.

With offices in Fairfax, Virginia and New York City, Brian is a partner in FTM Arts Law, the entertainment division of the law firm of Fettmann, Tolchin and Majors, P.C., and Managing Director of the arts management and consulting firm of FTM International.

Beware of Scams Involving Fake IRS Emails, Chinese Website Registrations, and Free Money!

By Robyn Guilliams

FTM Arts Law has learned of several email scams being perpetrated by individuals claiming to be with the Internal Revenue Service (IRS). The most current scam involves foreign companies and IRS Form W-8BEN. According to the IRS website (http://www.irs.gov/newsroom/article/0,,id=211669,00.html):

In this scam, fraudsters modify a genuine IRS form, the W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding, to request detailed personal and financial information. This could include nationality, passport number, bank account and PIN numbers, spouse's name and mother's maiden name, or other personal or financial information or security measures for financial accounts. The scammers may use the genuine form number and name or may make up a new form number, such as W-4100B2. They either e-mail or fax the form or letter. If only a letter, the letter itself contains the request for the personal and financial information. The letter, which claims to come from the IRS, states that the recipient will face additional taxes unless he or she quickly faxes the required information to the number provided by the scammer.

We know of several foreign performing arts companies who recently requested Employer Identification Numbers from the IRS and subsequently received an email, supposedly from an IRS employee, requesting financial information from the company.

Note that all email addresses for actual IRS employees end in the suffix "@irs.gov" (e.g., jane.doe@irs.gov). If you receive an email from a supposed IRS employee with any other type of email address (such as "irs.irs@xixia.net"), it is a fake!

Also, the IRS will NEVER initiate contact with anyone by email. If you receive an email purporting to be from the IRS, do not respond to the email!

Go to the IRS website http://www.irs.gov/privacy/article/0,,id=179820,00.html and/or

http://www.irs.gov/newsroom/article/0,,id=155682,00.html to find out how to spot these scams, and how to report the emails to the IRS.

In addition, we have also had several clients contact us recently about emails they have received from entities claiming to register/audit domain names in China and certain countries in Asia and Africa. These entities purport to inform you that someone is attempting to register your domain name in another country and, unless your respond immediately, your will lose your domain name in these countries. Typically, they kindly offer to register your domain name on your behalf. Do not respond. There are no such entities. It is a scam to get your information. While it is possible for someone to register the same domain name as yours with a different suffix (ie. bigartistmedia.com v. bigartistmedia.co.uk), the registration entities do NOT warn you ahead of time. Moreover, registration conflicts are resolved through Uniform Domain Name Dispute Resolution Policies as well as through other applicable laws and treaties--except in China and certain countries in Asia and Africa where such laws don't apply in the first place!

Lastly, it should go without saying, any emails offering to pay you a "fee" to hold money in your account, claiming you have inherited a large sum from a deceased 4th cousin in Uganda, or seeking to wire your organization an unsolicited donation from an arts-loving patron in Uzbekistan should be deleted and ignored. Angels exist, but they do not email you from third world countries asking for wiring instructions.

As a general rule, never send any personal information in response to an unsolicited email and always verify phone numbers, email addresses, and websites.

What the $%#@??? The IRS Has Changed the CWA Procedures... Again!!!

By Robyn Guilliams

Yes, just when you thought you had mastered the IRS’s procedures for obtaining a Central Withholding Agreement (“CWA”), the IRS has changed the requirements. Is this just another bureaucratic effort to frustrate the arts community? Not entirely. It just seems that way.

Apparently, the IRS has discovered certain “loopholes” in their prior procedures for obtaining a CWA that permitted artists, agents and managers to submit budgets that artificially lowered the taxable income of a foreign artist or tour. Whether or not you were aware of such loopholes, it is now too late. The IRS is tightening up their CWA requirements in order to close these loopholes. Most of the changes address the degree of detail that you will now need to provide with regard to your budget and expenses. While some of these changes were put in place earlier this year, others were instituted only recently. In neither event were these changes accompanied by any official announcement or warning. However, we have now been able to confirm the following new IRS requirements:

1) The IRS now requires that all individual performers be listed on a CWA request. For instance, if an individual who performs with back-up musicians, dancers, etc. wants to obtain a CWA, all of the back-up performers must now be included on the request. (In the past, an individual artist could apply for a CWA without having to list the accompanying performers being paid by that artist.)

2) Because the IRS is scrutinizing artist budgets much more closely than in the past, the IRS is now requiring as much detail as possible when you submit your budget with your CWA. Otherwise, the IRS will contact you to request more detail after you’ve submitted your budget. (These requests can result in much communication back-and-forth between you and the IRS, causing unnecessary delay in the process!) Examples of such detail include…

> Expenses for non-performing personnel (e.g., tour manager, technical crew, etc.): The IRS is now asking for the names of all non-performing personnel touring with the artist, the amount each non-performing individual is earning on the tour, as well as each non-performing individual’s country of citizenship and residence. If any of the non-performing personnel are non-US residents, 30% withholding will be required on the payments to these individuals UNLESS the individual a) resides in a country with which the U.S. has a tax treaty; and b) submits a valid IRS Form 8233 to the IRS to claim an exemption from withholding. NOTE: For the Form 8233 to be valid, it must include the individual’s U.S. tax identification number. If the individual does not have a U.S. tax ID number (i.e., this is his or her first time working in the U.S.), there can be no exemption from withholding. If you are the withholding agent, the IRS will require you to show proof that taxes were withheld when you submit your final accounting.

***Because IRS Form 8233 works differently for performing artists and non-performing artists, here’s a quick review regarding IRS Form 8233: This form is used to claim an exemption from withholding on compensation earned by a foreign independent contractor. The “exemption” is, in most cases, based on a tax treaty. Most, but not all, treaties treat compensation earned by performing artists differently than that earned by non-performing artists. These treaties put a cap on the amount an individual performing artist may earn tax-free in the U.S. For example, the U.S./U.K. tax treaty permits a performing artist who is a resident of the U.K. to earn up to $20,000 tax free. However, if an artist earns more than $20,000, the entire amount earned is subject to U.S. tax.

 As discussed in detail on the Artists from Abroad website (www.artistsfromabroad.org), the exemption available to performing artists is usually inapplicable at the withholding stage. It would apply only to claim a refund from withholding when the artist files his or her US tax refund. (This is because it’s impossible for the person paying the performing artist to know whether or not the performer will be over or under the cap at the end of the tax year.) By contrast, tax treaties rarely impose the type of cap referenced above on independent contractors who are non-performing artists. If a non-performing artist otherwise qualifies for an exemption, the non-performer’s entire U.S. income is usually exempt from tax in the U.S. For this reason, these individuals may submit Form 8233 at the withholding stage to claim the treaty exemption from tax and avoid any withholding.

>All Sources Of Income: If any of the performance contracts provide for contingent fees, box office splits, or back-end fees (i.e., a bonus or percentage of the gross ticket sales after a certain number of tickets are sold), the IRS will expect these additional fees to be included in your budget. Claiming that “we never make the overages” or "its impossible to predict" usually will not be accepted by the IRS. Also, be sure to include estimated figures for merchandising (e.g., t-shirt sales, CD/DVD sales, etc.) as well as for sponsorship or tour support, if any.


>Hotel Accommodations: You will not only have to show your costs for hotel or other accommodations, but you will have to show how those numbers were calculated. How many rooms? For which nights on the tour? For those of you hoping that, based on past experience, the IRS won’t take the time to go through each contract to count how many nights/rooms of hotel are being provided by the venues – au contraire! This has now become their standard operating procedure.


>Travel expenses: Again – detail, detail, detail. How many flights are included in your budgeted cost? From and to which cities is the tour party flying? If a number is budgeted for a motorcoach, on what legs of the tour will it be used, and how is the cost calculated (i.e., by the mile or by the day)?


>Backline: If there is a significant number in the budget for backline, what does this number cover? Note that while you can deduct rentals, you cannot deduct purchases. Also, note that if the performance contract provides that “house sound and lights will be provided,” the IRS will not let the artist deduct any additional costs for sound and lights provided by the artist. On several occasions I’ve argued with the IRS that house sound and lights are sometimes inadequate for our client’s needs and sometimes we don't know this until we arrive at the venue. The IRS does not accept this argument. Thus, if you know in advance that the artist is not going to use house sound and/or lights, or will be providing additional sound and/or lights at the artist's expense, this needs to be reflected in the engagement contract.


3) If there is a loss on the tour, the IRS now requires a letter to the IRS, signed by the artist, stating who is absorbing the loss. (Is the artist bearing the loss? The artist's record company? Perhaps the loss is being made up on the Canadian portion of the tour?) The artist must provide an explanation.


4) If you are an agent, manager, promoter, producer, or some other third party who is requesting a CWA on behalf of an artist, and you’ve submitted a Form 8821 authorizing you to communicate with the IRS on behalf of the artist, you are no longer permitted to sign the cover letter accompanying the CWA request. The IRS now requires that such letter be signed by each artist requesting a CWA. The reason is that the cover letter must include language certifying “under penalties of perjury” that the information submitted in the request is true and accurate. (see the instructions for requesting a CWA, IRS Form 13930.) The artist must also now sign the CWA itself. 


5) As in the past, an artist must be “in compliance” with the IRS to qualify for a CWA. This means that each individual artist must file a tax return for every year in which he or she worked in the U.S., even if no tax was due. While the IRS used to look back no more than three years or so to determine if an artist was compliant in filing U.S. tax returns, the IRS is now looking back as many as six or seven years to see if past returns have been filed!

6) With regard to per diems, the new IRS procedures allow artists to claim only 50% of their per diem as a deduction – the other 50% is considered income to the artists. Lest you think you can simply double the amount of the per diem for CWA purposes, the amount of per diem is limited by the current government per diem rate, which varies from city to city. The current rates may be found here: http://www.gsa.gov/portal/category/21287. For instance, the current meal per diem rate for Manhattan is $71. Therefore, the most that you can deduct as a per diem expense per individual is $35.50. Anything above that amount will be considered income to the person receiving the per diem and cannot be deducted from gross income. 


7) If an artist has performed in the U.S. earlier in the calendar year, the IRS is now requiring that the artist provide each date and venue for the earlier performances, the gross revenues for each date, and any taxes that were withheld. The IRS will add the gross income from the earlier performances to the income on the upcoming U.S. tour – and also take into consideration any withholding from the earlier performances – to calculate the amount of withholding necessary to cover the artist’s taxes.

Here are a few additional reminders and tips:

• The IRS has designated a new mailing address for CWA requests. It is:

Central Withholding Agreement Program

Internal Revenue Service

3651 S. I H 35, Stop 4302 AUSC

Austin, TX 78741

To avoid delays, do NOT send your CWA request to the old address in Nevada!

• Be sure to respond to any IRS questions about your CWA request in a timely manner! If the IRS asks for additional information, and they don’t hear back from you within a certain time frame, your CWA request may be denied, and letters will be sent to each venue on your artist’s tour directing the venue to withholding 30% of the gross performance fee.

• Regardless of your level of frustration, always be nice when dealing with the IRS! They have all of the power, and you have none. Remember that the IRS regards the CWA as a privilege, not a right, and if your request is denied, there is no appeal process. Besides, in my experience, it’s usually much easier to give the IRS what they are asking for rather than arguing with them about why they don’t need it, why the information and paperwork is burdensome, and why foreign artists are no longer willing to tour the U.S. Having said that, I must also note that all of the IRS agents I have dealt with in the CWA division have been friendly and helpful when presented with calm and reasonable questions and comments and you express a willingness to comply. Also, bear in mind that IRS agents can and will be inconsistent in their application of the rules for obtaining a CWA. This is partly because they are themselves trying to figure out the new rules and requirements.

• Bookmark the following websites for future reference:

www.Artistsfromabroad.org. This website, sponsored by the League of American Orchestras and the Association of Performing Arts Presenters, is regularly updated by FTM Arts Law. The site includes a multitude of information on visa and tax issues for foreign artists, including what artists are eligible for a W-8BEN tax exemption, and how to obtain a CWA.

www.FTMArtsLaw-pc.com. Our website contains additional free information and resources that simplify the legal issues involved in U.S. tours of foreign artists, including a foreign artist taxation memorandum, which summarizes the information contained in the Artists from Abroad website.


www.IRS.gov. The Internal Revenue Service's website is a valuable source of information that includes complete tax treaties, and forms and publications that offer guidance as to both withholding and taxation. Publications relevant to taxation of foreign guest artists are Publication 515 ("Withholding of Tax on Nonresident Aliens and Foreign Entities"); Publication 519 ("U.S. Tax Guide for Aliens") and Publication 901 ("U.S. Tax Treaties").