Form 13930 Central Withholding Agreement

Instructions on how to apply for a

Central Withholding Agreement
What is a Central Withholding Agreement?

Steps to Apply for a CWA

Central Withholding Agreement (CWA) is a tool that can
help nonresident entertainers and athletes who plan to
work in the United States. A CWA provides for the correct
amount of withholding based upon net income at
graduated rates.

Who can apply?

Legal Background

An authorized representative may apply for the NRA. To
prevent unauthorized disclosures, we require a Form
2848, Power of Attorney and Declaration of
Representative, or Form 8821, Tax Information
Authorization, to be fully executed, giving us authority to
discuss tax matters with the NRA’s representative. The
disclosure authorization (Form 2848 or Form 8821) must
be signed by the NRA. A faxed copy of this form is
acceptable. If there is a need to obtain additional
information from other sources, we will either request
authorization for that source or will request the information
through the source that already has authorization.

Generally, Section 1441(a) of the Internal Revenue Code
of 1986 requires all persons having the control, receipt,
custody, disposal, or payment of certain items of income
from sources within the United States of any nonresident
alien individual, to deduct and withhold from such income
a tax equal to 30 percent thereof. These persons are
withholding agents. The income items subject to this
withholding include, but are not limited to, interest,
dividends, rent, salaries, wages, compensations,
remunerations, and emoluments.
Section 1.1441-4(b)(3) of the Income Tax Regulations
provides that compensation for personal services of a
nonresident alien (NRA) individual who is engaged during
the taxable year in the conduct of a trade or business
within the United States, may be wholly or partially
exempted from withholding if a CWA is executed between
the Internal Revenue Service (IRS) and the alien
individual with respect to the amount of withholding
required. The regulation states that a CWA shall be
available in the circumstances and in the manner set forth
by the IRS.

IRS Policy
The IRS will consider entering into a CWA permitting
withholding on projected net income at a graduated rate,
as opposed to 30% of gross income, provided that all
requirements of Revenue Procedure 89-47 are met.
Accurately completing this application will fulfill the
requirements for consideration.
In no event will a CWA reduce the amount of withheld
taxes to an amount less than the anticipated income tax
liability.

Individual nonresident alien (NRA) entertainers and
athletes who perform or participate in events in the United
States can request a CWA. They may qualify for a lower
rate of withholding than 30% of gross income.

We may accept Form 2848 from an attorney, CPA, or
enrolled agent. Additionally, we may accept Form 2848 if
the representative is an officer of the company, a full-time
employee, family member, or enrolled actuary. The
authorization should cover, at a minimum, a CWA for the
current year, Income Tax Form 1040NR for the present
and two prior years, as well as any Form 1042-S in the
taxpayer’s name for any year in question.
We would also accept Form 8821 from anyone else
designated to receive tax return information. Form 8821
authorizes any individual, corporation, firm, organization,
or partnership designated to inspect and/or receive
confidential information in any office of the IRS for the
type of tax and the years or periods listed on Form 8821.
The authorization should cover the same tax return
information as shown above.

When should I apply?
You must submit an application for a CWA at least 45
days before the tour begins or the event occurs to allow
for timely evaluation. Exceptions will be considered on a
case-by-case basis.

Where do I apply?
Submit your application and all accompanying documents
to:

Department of the Treasury
Form 13930 (Rev. 1-2011)
Internal Revenue Service
Catalog Number 50991Q
www.irs.gov

Central Withholding Agreement Program
Internal Revenue Service
3651 S. I H 35, Stop 4302 AUSC
Austin, TX 78741

How do I apply?

4. An itinerary of dates and locations of all performances
or events scheduled during the period to be covered
by the CWA. Include any anticipated performances
that may be in negotiation or planning. Tours crossing
calendar years may require additional information and
will require a separate CWA for each year.

You must submit a written application and
appropriate attachments.
The only standard portion of an application for a CWA is
the application form itself appearing at the end of these
instructions. The remainder of the application will consist
of a computer-generated letter from you explaining the
facts requested below, along with the appropriate
attachments. Be sure to date your application.

5. A spreadsheet containing the proposed budget
showing itemized estimates of all gross income
(including but not limited to income attributable to
items listed in 2 and 3 above) and US expenses for
the tour or event. If the tour encompasses events
outside of the US, separately state the US income
and expenses.

If an entertainment group consists of more than one NRA,
generally each NRA will need to apply for a CWA. When
requesting a CWA for multiple entertainers, list each one
and provide the complete information for each. Attach a
spreadsheet showing all of the group members'
allocations in this instance. Total of all group members’
portions should equal 100%.

6. A list of any previous CWA(s) for the calendar year in
which the CWA is requested. If there is any US
source income previously earned in the calendar
year not claimed on a CWA, provide the income, the
source and verification of amounts withheld and
deposited. If no prior income, state not applicable.

You may need to provide additional information that
affects the computation or completion of the CWA that is
requested by the IRS. This information must be provided
in a timely manner. Delays in response may jeopardize
the approval of the CWA.

7. For each NRA, state whether the NRA has been in the
US providing personal services during the current or
six prior years. Provide the US taxpayer ID for
whom the income and deductions were reported.

The signature of the person completing this
application is required on the letter. Place this
declaration above the signature:

For an Athlete, attach the following:

“I wish to obtain a Central Withholding Agreement
between the nonresident alien athlete/entertainer, the
withholding agent, and the Internal Revenue Service
covering the services to be provided as shown.

8. Copies of all agreements presented to the athletic
association (e.g. bout agreements).
9. Copies of any other agreements regarding residual
income, such as Pay Per View or exclusive television
rights to athlete's home country.

Under penalties of perjury, I declare that I have examined
this application, including any accompanying schedules,
exhibits, affidavits, and statements and to the best of my
knowledge and belief it is true, correct, and complete.”

10. Copies of documents related to any other income
such as endorsement income or sponsorship
contracts.

Supporting Documents Required to
Evaluate Your Application

11. Date and location of this event as well as the promoter
name.

1. Complete all boxes on the application form at the end
of these instructions with information regarding the
NRA, the withholding agent and an alternate contact
representative, if desired. For CWAs involving
multiple entertainers, complete the continuation sheet.

12. State whether the NRA has been in the US providing
personal services during the current or six prior years.
Provide the US taxpayer ID of the NRA for whom the
income and deductions were reported.
13. A spreadsheet of all expenses for the event such as
manager, trainer, cutman, sanction fee, sparring
partner, training facility expense, and travel to and
from home country.

For an Entertainer(s), attach the following:
2. Copies of all documentation related to income of the
covered NRA(s) regarding the time period and
performances or events to be covered by the CWA.
Documentation should include (but not be limited to)
contracts, letters of understanding, offer letters,
engagement letters, agreements with employers,
agents, representatives, promoters, venues such as
exhibition halls and the like.

14. List any previous CWA(s) for the calendar year in
which the CWA is requested. If there is any US
source income previously earned in the calendar
year not claimed on a CWA, list the income,
the source and verification of amounts withheld and
deposited. If no prior income, state 'not applicable'.

3. All documentation related to merchandising,
endorsements, sponsorship income, production or
tour support, and reimbursement in any way
associated with this activity or event.

NOTE: These lists are not all inclusive. If other
information explains your situation, include it.
2

Our purpose for requesting the information is to determine
if it is in the best interests of the IRS to execute a Central
Withholding Agreement (CWA). You are not required to
request a CWA; however, if you choose to do so, you
must provide all of the taxpayer information requested.
Failure to provide all of the information may prevent us
from processing your request.

Additional Information
For the NRA:
NRAs without an SSN who are in the US on work
visas should plan to apply for an SSN while in the
US. See www.ssa.gov for information. In general
an NRA who has worked in the US in a prior tax
year will not be granted a CWA without having an
SSN or ITIN.

If you are a paid preparer and you prepared the Form
13930 for the taxpayer submitting a CWA request, we
request that you complete and sign the application letter
as described in Form 13930, and provide identifying
information. Providing this information is voluntary. This
information will be used to administer and enforce the
Internal Revenue laws of the United States and may be
used to regulate practice before the IRS for those persons
subject to Treasury Department Circular No. 230,
Regulations Governing the Practice of Attorneys, Certified
Public Accountants, Enrolled Agents, Enrolled Actuaries,
and Appraisers before the Internal Revenue Service.
Information on this form may be disclosed to the
Department of Justice for civil and criminal litigation.

Each NRA must have accurately and timely filed
past US tax returns as appropriate and must
continue to do so.
For the Withholding Agent:
Each CWA requires a designated withholding agent
enter into the CWA as a party to the agreement
between the IRS and the NRA Athlete or
Entertainer. The designated withholding agent must
be an independent third party unrelated to the NRA,
or entities owned by the NRA.
A CWA is effective only for the tour or events
covered and payments stipulated in the CWA. It is
effective only when signed by all parties to the CWA,
(i.e. the NRA, the withholding agent and IRS).

You are not required to provide the information requested
on a form that is subject to the Paperwork Reduction Act
unless the form displays a valid OMB control number.
Books or records relating to a form or its instructions must
be retained as long as their contents may become
material in the administration of any Internal Revenue law.
Generally, tax returns and return information are
confidential as required by section 6103. However,
section 6103 allows or requires the Internal Revenue
Service to disclose or give such information shown on
your Form 13930 to others as described in the Code. For
example, routine uses of this information include giving it
to the Department of Justice to enforce the tax laws, both
civil and criminal, and to cities, states, the District of
Columbia, and U.S. commonwealths or possessions for
use in administering their tax laws. We may also disclose
this information to other countries under a tax treaty, to
federal and states agencies to enforce federal non-tax
criminal laws, or to federal law enforcement and
intelligence agencies to combat terrorism. Providing false
or fraudulent information on this form may subject you to
criminal prosecution and penalties.

The designated withholding agent is required to
withhold and pay withholding tax according to the
terms of the CWA. The designated withholding
agent is required to provide a final accounting of the
income and expenses that were projected in the
CWA and deposit any additional withholding tax
required as a result of the final accounting.
The CWA program requires withholding agents to
have a US bank account and be enrolled in the
Electronic Federal Tax Payment System (EFTPS). It
also requires deposits to be made through EFTPS.
For enrollment procedures and requirements, see
www.eftps.gov.

What happens after IRS receives my Application?
You will be contacted by a tax specialist regarding the
status of your application and any additional
information that may be required.

The time needed to complete and file this form and
related schedules will vary depending on individual
circumstances. The estimated average times are:

If your request for a CWA is granted, the specialist will
notify you in writing and provide the agreement for
signature. A CWA is not in effect until all parties to
the agreement have signed the CWA.
The withholding agent will withhold income tax and
pay over the withheld tax to the United States
Treasury on the dates and in the amounts specified in
the CWA.
The IRS will apply the payments of withheld tax to the
withholding agent’s Form 1042 account. Each
withholding agent must file Form 1042 and Form
1042-S for each tax year in which income is paid with
respect to the period and events covered by the CWA.

Recordkeeping

5 hr., 0 min.

Learning about the law or the form

3 hr., 0 min.

Preparing the form

2 hr., 30 min.

Copying, assembling, and sending
the form to the IRS

1 hr., 30 min.

If you have any comments concerning the accuracy of
these time estimates or suggestions for making this form
simpler, we would be happy to hear from you. You can
write to the Internal Revenue Service, Tax Products
Coordinating Committee, SE:W:CAR:MP:T:T:SP, 1111
Constitution Ave. NW, IR-6404, Washington, DC 20224.
Do not send the tax form to this address.

Privacy Act and Paperwork Reduction Act Notice
We ask for the information on this form to carry out the
Internal Revenue laws of the United States. Our authority
to request this information is Section 7801 of the Internal
Revenue Code.
3

Department of the Treasury — Internal Revenue Service

Form

13930

(January 2011)

OMB No. 1545-2102

Application for Central Withholding Agreement
IRS Use Only:
AE-ID:

1. Athlete/Entertainer (Nonresident Alien)
a. Legal Name
Last

IRS Use Only:
G-ID:

c. US Taxpayer ID (Social Security Number or Individual Taxpayer ID Number)
First

MI

b. NRA Address (Street, City, Province/State, Postal/Zip code, Country (if not d. Date of Birth (mmddyyyy)
USA))

f. Country of Citizenship

e. Country of Residence
g. Applying as (check the box that describes the NRA's profession)
h. Group Name (if applicable, indicate the group name and attach CWA

Athlete

Entertainer

i. Percentage share of net income (NRA's percentage of earning from this tour)

Worksheet Continuation page(s) listing other group members to be covered
by this CWA)

j. Stage Name (performance name)

k. Marital Status

Married

Single

l. Complete the Section, if operating as a Business
Business Name:

Form of Business (i.e. Limited Liability
Company, Corporation, Partnership or other)

US Taxpayer ID of Business (EIN)

Country where Business established:

Date Business established (mmddyyyy)

2. Withholding Agent

IRS Use Only:
WHA-ID:

IRS Use Only:
CWA-ID:

a. Individual Name

d. US Taxpayer ID (EIN):

b. Firm Name

e. Voice Phone Number (include Country Code if applicable)

c. Firm Address (Street, City, Province/State, Postal/Zip code,

f. Fax Phone Number (include Country Code if applicable)

Country (if not USA))

g. Withholding Agent is currently a depositor of US Withholding Taxes (i.e. payroll or backup withholding)
If you answered "Yes" to the question above please answer the following
h. Withholding Agent currently deposits US Withholding Taxes via

i. I am acting as:

Promoter

Agent

Venue

EFTPS

8109-B with
my bank

Yes

No

Other

Other

3. Contact Person: The withholding agent (listed under 2) will be contacted for additional information if necessary unless alternate contact is provided
below:
a. Individual Name

d. Voice Phone Number (include Country Code if applicable):

b. Firm Name

e. Fax Phone Number (include Country Code if applicable)

c. Firm Address (Street, City, Province/State, Postal/Zip code, Country (if not * US Taxpayer ID (EIN or SSN) go to www.irs.gov, keyword EIN for
USA))
more information and Employer ID application procedures.

Catalog Number 50991Q

Page 1 of 2

www.irs.gov

Form 13930 (Rev. 1-2011)

Page 2 of 2

Continuation Sheet – For Entertainment Groups with Multiple NRAs

1a. Athlete/Entertainer (Nonresident Alien)

IRS Use Only:
AE-ID:

IRS Use Only:
G-ID:

a. Individual Legal Name

c. US Taxpayer ID (Social Security Number or Individual Taxpayer ID Number)

b. NRA Address (Street, City, Province/State, Postal/Zip code, Country

d. Date of Birth (mmddyyyy)

(if not USA))

e. Country of Residence

f. Country of Citizenship

g. Applying as (check the box that describes the NRA's profession)
h. Group Name (if applicable, indicate the group name and attach CWA

Athlete

Entertainer

i. Percentage share of net income (NRA's percentage of earning from this tour)

Worksheet Continuation page(s) listing other group members to be covered
by this CWA)

j. Stage Name (performance name)

k. Marital Status

Married

Single

1b. Athlete/Entertainer (Nonresident Alien)

IRS Use Only:
AE-ID:

IRS Use Only:
G-ID:

a. Individual Legal Name

c. US Taxpayer ID (Social Security Number or Individual Taxpayer ID Number)

b. NRA Address (Street, City, Province/State, Postal/Zip code, Country

d. Date of Birth (mmddyyyy)

(if not USA))

e. Country of Residence

f. Country of Citizenship

g. Applying as (check the box that describes the NRA's profession)
h. Group Name (if applicable, indicate the group name and attach CWA

Athlete

Entertainer

i. Percentage share of net income (NRA's percentage of earning from this tour)

Worksheet Continuation page(s) listing other group members to be covered
by this CWA)

j. Stage Name (performance name)

k. Marital Status

Married

Single

1a. Athlete/Entertainer (Nonresident Alien)

IRS Use Only:
AE-ID:

IRS Use Only:
G-ID:

a. Individual Legal Name

c. US Taxpayer ID (Social Security Number or Individual Taxpayer ID Number)

b. NRA Address (Street, City, Province/State, Postal/Zip code, Country

d. Date of Birth (mmddyyyy)

(if not USA))

e. Country of Residence

f. Country of Citizenship

g. Applying as (check the box that describes the NRA's profession)
h. Group Name (if applicable, indicate the group name and attach CWA

Athlete

Entertainer

i. Percentage share of net income (NRA's percentage of earning from this tour)

Worksheet Continuation page(s) listing other group members to be covered
by this CWA)

j. Stage Name (performance name)

k. Marital Status

Catalog Number 50991Q

Married

Single

www.irs.gov

Form 13930 (Rev. 1-2011)