Erroneously issued 1099-K to foreigner

Forum|Forum|3 years ago
August 31, 2022
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A foreigner from Mexico with family in the US opening an account for processing credit cards for his business in Mexico but listed his familys US address and used a US account. He never filled out a W-9 as he is a foreigner and now received a 1099-k and the issuer refuses to accept a W-8BEN from him, what is the easiest resolution?

LRay_EA

Currently TurboTax does not process NonResident tax returns. I did find this helpful article from our partner Sprintax related to a US nonresident who receive a 1099-K https://blog.sprintax.com/form-1099k-reporting-tax-return-nonresidents/ .

According to the above article it looks like a US tax return will need to filed to inform the IRS how this the income reported on the 1099-K was used. This income is fully taxable and should be reported to the IRS. The good thing is that there may also be expenses related to this income that could reduce the taxable portion of this income.

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caymandmAuthor

So you would not invoke the double taxation treaty alleging that the person has no permanent establishment in the US and has declared the income and paid taxes in their home country? Was that an oversight?