U.S. Withholding Agent

A U.S. withholding agent is any U.S. person (or FFI treated as U.S. person) making a withholdable payment. Agents must withhold 30% on payments to non-compliant FFIs and recalcitrant account holders, remit withheld amounts to the IRS, and file required FATCA returns, enforcing the Act?s penalty mechanism.