What are Federal Tax Requirements for Owner Distributions?

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.”

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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.