September 30, 2008
Clarification on Accountable Plan Rules!
The League has recently obtained important clarification from the Internal Revenue Service (IRS) regarding expense payments for foreign guest artists. As you likely know, published and verbal guidance from the IRS has been confusing and contradictory on the question of whether expense reimbursements and payments made to third parties on behalf of foreign artists are subject to withholding. Previous guidance from the IRS - including guidance provided during League-hosted webinars and sessions this past summer - has indicated that these payments are subject to withholding. The newest word from the IRS, however, indicates otherwise.
The most recent verbal guidance from the IRS, as well as the IRS’s written guidance, indicates that the "accountable plan rules" are applicable to nonresident aliens working as independent contractors in the United States. In effect, an expense reimbursement made to a foreign artist in accordance with these rules is not reportable as income – and is not subject to 30% withholding. The accountable plan rules also apply to expenses paid to third parties on the artist’s behalf (e.g., hotel accommodations and/or travel paid for or provided by a presenter). Learn more about the rules - and exceptions - in our updated guidance regarding payments subject to withholding on the Artists from Abroad web site.
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July 15, 2008
Steer Clear of IRA Penalties
If your orchestra engages musicians from abroad, it's important to know that the tax rules are very different than the usual procedures for U.S. musicians. To help orchestras avoid IRS penalties, the League offered two webinars on this topic in May and continues to provide online technical assistance. Visit Artists from Abroad and check out the tax section for updated guidance and links to all of the forms needed to comply with IRS rules.
Visit ArtistsfromAbroad.org Today!
April 1, 2008
Artist Visa Act Passes in the House!
Today the U.S. House of Representatives passed legislation to improve the artist visa process! The "Arts Require Timely Service (ARTS) Act", H.R. 1312, is sponsored by Rep. Howard Berman (D-CA) and 12 other bipartisan leaders, and would improve the reliability, efficiency, and affordability of the artist visa process by requiring USCIS to treat as a Premium Processing case, free of additional charge, any arts-related O and P visa petition that it fails to process within 30 days.
Before the ARTS Act can be signed into law, it must next be approved in the Senate. The House bill will soon move to the Senate for consideration, where the groundwork for support has already been set by Sens. John Kerry (D-MA) and Orrin Hatch (R-UT) who introduced a similar provision, S. 2178. The League will continue working closely with the Senate to advance this measure and bolster support as the bill heads toward a vote. Congratulations! Your advocacy has advanced this issue through the House!
Learn More about the Vote
November 8, 2007
Advocacy by the nonprofit performing arts sector, including recent targeted advocacy efforts by orchestras, is producing results on the Hill.
Yesterday, legislation to improve the visa process for artists was approved by the House Judiciary commitee. The "Arts Require Timely Service (ARTS) Act", sponsored by Rep. Howard Berman (D-CA) and 10 other bipartisan congressional leaders, would make the artist visa process more reliable, efficient, and affordable for nonprofit arts-related petitioners.
In yesterday's House committee action, amendments that would have drastically limited the effectiveness of the ARTS Act were defeated and the Act was approved for consideration by the full U.S. House of Representatives.
An identical provision, S. 2178, has been introduced by Sens. John Kerry (D-MA) and Orrin Hatch (R-UT). As Congress finishes its work for 2007, the League and our colleagues in the Performing Arts Visa Task Force will continue to advance these improvements to the visa process. We will keep you posted regarding specific, strategic advocacy opportunities!
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In late September, the League met with top officials at the processing unit in California - one of two locations that processes all arts-related visa petitions -to describe the visa obstacles encountered by orchestras and gain insights into the petition process.
U.S. Citizenship and Immigration Services officials were welcoming, listened to the concerns of arts petitioners, and provided helpful information about the current visa process. The California processing center alone receives nearly 60,000 petitions each month for a wide array of visa classifcations for workers and visitors traveling to the United States. Simply getting an artist's petition through the mailroom can be a significant challenge.
We've updated the ArtistsfromAbroad.org web site to reflect new tips that can help your visa petition makes its way more quickly and reliably.
Avoid Delays and Expense - Follow these Tips!
Foreign artists are subject to specific tax withholding rules. The IRS has recently announced plans to beef up enforcement of these withholding requirements. According to an IRS official, "The bottom line is the IRS is concerned that foreign athletes and entertainers pay their fair share of withholding tax and do the proper reporting for earnings in the United States."
To be sure your orchestra is familiar with the tax requirements for foreign guest artists, please consult the tax section of the Artists from Abroad web site.
As the IRS considers creating new guidance and outreach regarding foreign artist withholding, the League and our national partners are conveying the unique concerns of the nonprofit performing arts community.
Learn about Tax Rules for Foreign Artists
Please direct any related questions to Heather Noonan, Vice President for Advocacy, This e-mail address is being protected from spam bots, you need JavaScript enabled to view it or Najean Lee, Government Affairs & Education Advocacy Manager, This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
The League is a member of the Performing Arts Alliance, a coalition of national performing arts service organizations dedicated to advocating for national policies that recognize, enhance, and foster the contributions the performing arts make to America.