My foundation, located outside the U.S., has tax withheld for certain U.S. investments. What to do now?

Foundations outside the U.S. or foreign organizations are required to report any tax withheld at the source for any transaction within the United States. Usually, any foundation with any tax withholdings in the U.S. must file a Form 1042-S. A foundation reporting the tax being withheld at the source has to attach a Form 1042-S along with the Form 990-PF or any other attachment that verifies the reported withheld tax.

Any foreign exempt foundation with tax withheld at the source must report it in Form 990-PF, and this amount will be considered a credit for the foundation.

Here's how you can report your tax withheld in Form 990-PF using Tax990:

• On the 'Organization Tax Year' page, select the tax year calendar or fiscal for which you want to file the information return.

• Once done, the subsequent steps will be to fill the actual parts of the form. 

• Under 'Excise Tax Based on Investment Income,' select 'Credits/Payments.' 

• Enter the tax value withheld for your investments in the U.S. in the box given against 'Exempt foreign organizations-tax withheld at source.' 

• Click Next and follow the subsequent steps as prompted. 

• Review the details, Pay, and click the Transmit button to transmit your return to the IRS. 

Note: This applies only to tax-exempt foreign organizations.
 

Private foundations outside the U.S. have to paper file their Form 990-PF, as e-filing is not available to those foundations. These organizations can paper file their Form 990-PF and mail it to the address mentioned below:

Internal Revenue Service Center,
P.O. Box 409101,
Ogden,
UT 84409.