Non-US Resident Tax
CASE STUDY
From Frustration to Refund –
How ICONAC Helps International Artists Reclaim Their US Tour Earnings
Situation
A Dutch DJ has just wrapped up a 19-date tour in the United States. After performing the shows and thrilling fans, it’s finally time to get paid. However, when the show fees hit their account and they check their banking app, the amount is significantly less than expected. The celebratory dinner with friends is spoiled. What happened, and why? It turns out that the Internal Revenue Service (IRS) withheld around 30% of the DJ’s earnings for federal taxes. This wasn’t expected, nor was it communicated beforehand. As the disappointment and frustration set in, they wondered, “Was there anything that could have been done?” Yes, there was!
For international artists touring the U.S., dealing with withholding tax can be a surprise and a hassle. But with ICONAC's help, you can get a good chunk of that money back. In my experience, clients working with ICONAC have found themselves eligible for tax refunds between $20,000 and $80,000.
Solution
Obtained a Social Security Number: ICONAC assisted the DJ in acquiring a U.S. Social Security Number, a necessary requirement for filing a tax return. The DJ received a Social Security Card within three weeks of submitting the proper paperwork.
Acquired Withholding Certificates: Once the SSN was obtained, ICONAC requested the DJ’s U.S. tour settlement statements. With these documents, ICONAC provided an estimate of the potential refund. They calculated that the IRS withheld $38k from the DJ’s tour earnings and could help reclaim a portion of it. ICONAC then obtained amended Withholding Certificates from the promoters of the DJ’s past shows, covering earnings from as far back as three years.
Filed the Tax Return: With all the necessary paperwork in hand, ICONAC prepared the tax return, and the DJ electronically signed it. ICONAC then filed the tax return.
Result
Receiving the Refund: Once the filing was completed, the DJ’s role was done. They returned to their routine, stepped back into the studio, started another tour, and continued with the hustle and passions that kept them moving. Around 5-6 months later, a check from the IRS arrived in the mail, returning the money that was rightfully theirs. After expenses, ICONAC secured around $30,000 back for the DJ.
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