Duo8, Inc. is a U.S. corporation that was formed in MA in 1942.

• Amanda, one of the internal accountants at Duo8, Inc., has recently discovered that
• they have an individual investor, Clarke Johnson, who is a nonresident noncitizen.
• Clarke is a citizen of the UK and resides in London fulltime. Though he has a US
• taxpayer ID number he is NOT a US citizen or resident for income tax purposes.
• To complicate matters, Amanda has also discovered that in 2018, Duo8, Inc. paid Clarke
• $60,000 in consulting fees for the consulting work he does for the company. Amanda
• has confirmed that all of Clarke's work is completed in the United Kingdom.
• Duo8, Inc. is about to announce that a dividend will be paid. Amanda is not sure, but
• she thinks there is some extra reporting associated with the $15,000 dividend to be paid
• to Clarke.
• She is also unsure of how to report/if there is a need to report the consulting fees paid
• to Clarke.
• For purposes of this assignment, please assume there is no current tax treaty with the
• United Kingdom.

Questions 17:Please identify the following:

1. Source for the consulting fees to be paid (US or nonUS)

2. Source for the dividends to be paid (US or nonUS)

3. Types of income for reporting purposes (FDAP, ECI, etc.)

4. Rates of withholding, if applicable

5. The applicable forms to be filed with the IRS to report the withholding

6. The appropriate form(s) for Duo8 to request from Clarke

7. The amount(s) to be withheld