What are Federal Tax Requirements for Owner Distributions?

Posted by WILMOTH Group on October 13, 2021

United States tax laws are very specific about withholding requirements for anybody without a federal tax identification number. The below is directly from the WILMOTH Group management agreement.

“Distributions to Owner will only take place upon completion of a United States federal W-9 tax form disclosing the federal tax identification numbers for all owners. Under United States tax law,(US Internal Revenue Code Sect. 1441- the deduction of a withholding tax on all fixed or determinable gross income shall be required of any non-resident alien individual, fiduciary, foreign partnership or foreign corporation unless exempt under provisions provided under said IRS Section.) WILMOTH Group is obligated to withhold 20% of all funds when a tax identification has not been received and submit those funds to the United States Treasury. If management services are begun with no federal W-9 form in receipt, OWNER agrees to pay an additional Twenty Five ($25.00) per month to account for the cost of such processing. MANAGER reserves the right to not offer any services in this Agreement if not in receipt of a W-9 form containing all OWNERS federal tax identification number.”

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
WILMOTH Group is headquartered in Indianapolis, Indiana and Fort Myers, Florida. We focus on providing creative local solutions for a variety of residential real estate needs including, properties for sale, property management services in Indianapolis, and short-term management services in Tampa and Fort Myers.