A Central Withholding Agreement, the IRS program built for nonresident artists and athletes, fixes that cash drag. Instead of a blunt 30% haircut on gross, you agree with the IRS and a designated withholding agent to withhold on projected net income at graduated rates.
In simple terms, you keep more working capital during the tour while staying compliant. The IRS confirms this purpose, the parties to the agreement, and the requirement to file a timely return for the covered year.
You will still need discipline. The IRS deadline is firm. Your application must arrive no later than 45 days before the first covered event. The Service says late applications are not processed. Plan backward from opening night and build your file early.
Key Takeaways
- A Central Withholding Agreement replaces default 30% gross withholding with withholding on projected net income at graduated rates for nonresident artists and athletes.
- The application uses Form 13930 and is due at least 45 days before the first covered event. Late applications are denied.
- You apply by fax or mail. The IRS may invite you to upload supporting documents through its secure Document Upload Tool after your case is opened.
- The designated withholding agent must enroll in EFTPS with an EIN and make deposits to the Form 1042 account, then file Forms 1042 and 1042‑S.
- As of 2025, the IRS has temporarily waived the $10,000 minimum income rule and notes that Form 13930‑A is unavailable. If you project under $10,000 in U.S. gross, you may still apply using Form 13930 while the waiver stands.
A CWA is an agreement among you, a designated withholding agent, and the IRS that aligns withholding with your real, tour‑level numbers, not a one‑size 30% of gross.
Who this guide helps
- Tour and business managers supporting nonresident artists and athletes
- CPA and EA firms that prepare 1040NRs and 1042‑S reporting
- Promoters and payers who must withhold, deposit, and report correctly
If you run an accounting firm, this is also an operations topic. Most firms do not struggle because they cannot sell. They struggle when delivery breaks under season spikes, reviews pile up, and deadlines slip. A repeatable CWA workflow reduces last‑minute fire drills and protects review time.
What a CWA Actually Does
From blunt withholding to net‑based deposits
By default, U.S. payers must withhold 30% of gross U.S. payments to nonresident performers. With a CWA in place, withholding is based on estimated net income at graduated rates, usually much lower than 30% of gross. You still file the tax return at year end, and the IRS will not allow withholding to dip below your anticipated tax.
The legal footing in plain English
Two authorities sit behind the program. First, Treasury regulations under section 1441 specifically allow withholding agreements for personal services. Second, the IRS implements the program through longstanding administrative procedures. In short, the IRS may enter into a written agreement with the nonresident individual to set tour‑specific withholding, and the agreement takes effect only after all three parties sign.
Eligibility, IDs, and the $10,000 Question
Who can apply
You can apply if you are a nonresident alien artist or athlete performing independent personal services in the United States, you are current on required U.S. returns, you have arranged to pay any balances due, you have a designated withholding agent, and you have agreements for the covered events. The IRS lays out these points clearly.
SSN, ITIN, and practical reality
The IRS encourages performers who enter the United States to apply for an SSN, since it simplifies taxpayer identification. That said, IRS internal guidance recognizes that not every applicant can provide a TIN at the moment of application. Practically, you should provide an SSN or ITIN when available, or evidence that an application is in process, and keep identification consistent across all forms and contracts.
Do not let the TIN question stall your case. Apply for the SSN once you are in the U.S., or document your ITIN situation, then keep the file moving with consistent IDs across the application, budgets, and contracts.
Is Form 13930‑A still a thing
Here is the current position. The IRS temporarily waived the $10,000 minimum income requirement for Form 13930, and Form 13930‑A is currently unavailable. While that waiver is in effect, even if projected U.S. gross is under $10,000, you can apply using Form 13930. Always verify the latest note in Publication 515 before you file, since it is updated annually.
Deadlines you cannot miss
- File the application at least 45 days before the first covered event. Late filings are not processed.
- Plan for separate applications if your itinerary spans calendar years.
- Expect a receipt confirmation within about a week once a timely application is in.
How to submit in 2025
- Initial application route. Send Form 13930 and the core packet by fax or mail to the CWA Program. The IRS lists the fax number and mailing address, and it states that late applications will not be processed.
- Secure uploads after contact. Once the IRS issues an access code or requests information, you can use the Document Upload Tool to send PDFs or images securely through your browser. This reduces back‑and‑forth and speeds reviews.
The Three Parties and Their Jobs
You, the performer or your representative
- Provide contracts, itinerary, and a realistic budget.
- Stay current on past filings, or document arrangements to pay.
- Commit to filing a Form 1040NR for the covered year.
The designated withholding agent
- Must be the person that controls, receives, or pays U.S. income.
- Enrolls in EFTPS using an EIN and makes Form 1042 deposits on time.
- Files Forms 1042 and 1042‑S reporting the payments and withholding for the covered period.
The IRS
- Reviews eligibility and documentation.
- Issues the agreement for signatures.
- May request updates as facts change and can modify or revoke if terms are not followed.
What To Include in a Clean, Approval‑Ready File
The working checklist
- Signed Form 13930, penalty‑of‑perjury statement, and authorization if represented, using Form 2848 or 8821.
- Full contracts and deal memos for every U.S. event, plus sponsor and endorsement schedules if covered.
- A practical, itemized budget, including travel, lodging, per diems, production, agent and manager fees, and crew.
- A dated itinerary with cities, venues, and expected gross.
- Identification details, including SSN or ITIN if available, or proof of application in process.
- Withholding agent info, EIN, and EFTPS readiness.
The IRS needs enough detail to tie income streams to events and to see how deductible costs drive projected net income. A tight budget and complete contracts speed review.
A quick thresholds table for context
| Requirement | Today’s status | Why it matters |
| Income threshold to use 13930‑A | 13930‑A is currently unavailable | Apply with Form 13930 even if under $10,000 while waiver stands. |
| Timing | File at least 45 days before first event | Late filings are not processed. |
| Deposits | EIN required, deposits via EFTPS to Form 1042 | Withholding agent responsibility. |
| Year‑end returns | File 1040NR and 1042/1042‑S | You true‑up at filing. |
Net‑based withholding in practice
- You project gross receipts per event, subtract allowable U.S. expenses, and compute estimated net income.
- The agreement sets deposit amounts and dates that match the schedule of payments.
- Withholding is based on graduated rates and cannot be lower than anticipated tax.
Where state taxes fit
A federal CWA does not automatically cover state withholding. Coordinate early with state rules for performances in those jurisdictions. Use the federal allocation as your starting point, then follow state‑specific deposits and returns. The IRS reminds withholding agents that absent a CWA, they must withhold at statutory rates, typically 30% for independent personal services. States may impose their own obligations.
Step‑by‑Step, From First Call To First Show
1) Scope the itinerary and budget
Start with the events, contracts, and realistic costs. Tie every dollar to a document. That single discipline shortens review time and reduces revisions.
2) Choose the withholding agent
Pick the person or entity that actually pays or controls tour income in the U.S. Confirm they have an EIN and enroll them in EFTPS as a business so they can make Form 1042 deposits on schedule.
3) File Form 13930 on time
Send the application by fax or mail no later than 45 days before the first covered event. Track delivery, then watch for the IRS confirmation and any request for more information. If the IRS gives you an access code, use the Document Upload Tool to push additional PDFs quickly and securely.
4) Sign and follow the agreement
When the IRS approves and issues the CWA, everyone signs. The agreement is effective when all parties have signed. From that point, the withholding agent must deposit per schedule to the Form 1042 account through EFTPS and later file Forms 1042 and 1042‑S. The performer must file Form 1040NR for the year.
5) Keep the agreement current
Tours change. If dates, fees, or expenses shift, tell the IRS promptly. The Service can modify or revoke the agreement if facts change or terms are not met.
Example, how the numbers shift
- Without a CWA. A $500,000 U.S. gross would trigger $150,000 withheld at 30%.
- With a CWA. Suppose allowable U.S. tour expenses are $320,000, projected net is $180,000, and graduated rates apply. The deposit schedule would track those payments, and total deposits would target the anticipated liability, not a flat $150,000. The IRS is explicit that a CWA cannot reduce deposits below the anticipated tax.
Common tripwires that get cases denied
- Filing inside the 45‑day window. The IRS will not process late applications.
- Missing core docs. No itinerary, no budget, no contracts.
- No eligible withholding agent, or no EIN and EFTPS enrollment.
- Prior returns not filed or balances not arranged.
- Inconsistent identity data across forms and contracts. The IRS checks.
Treat the CWA like a live engagement. Build a clean book, assign an accountable lead, and track every dependency. That is how you avoid last‑minute denials.
FAQs, Straight Answers
Can a CWA cover multiple tours or just one period
It can cover multiple events within the agreed scope and dates. The IRS treats the CWA as event and time specific. If your itinerary expands or shifts, communicate and expect to sign an addendum when documentation is provided in time.
Are per diems taxable under a CWA
Per diems can be treated as reimbursements when they follow federal rates and you substantiate the policy and amounts. If payments exceed allowances or lack proof, expect tax and reporting. Your budget should flag per diems clearly so the IRS can see how they were handled in projected net income.
Can minors apply with a guardian
Yes, but follow the regular CWA requirements and local legal rules on consent and representation. The IRS focuses on the tax and withholding framework. Your documentation must still show contracts, itinerary, and a compliant withholding agent.
What happens if an event gets canceled after approval
Notify the IRS and document the change. Managers can approve addenda to remove canceled events and adjust deposit schedules. Keep proof of refunds, insurance, or lack thereof.
How do federal and state withholding interact
The federal CWA governs federal deposits and reporting. You still need to comply with each state’s rules for performances there. Start with your federal allocation, then follow state guidance for deposits and credits.
Quick reference, who files what
| Role | What they file | When |
| Withholding agent | Form 1042 deposits via EFTPS, then Forms 1042 and 1042‑S | Per the CWA schedule and by annual deadlines |
| Performer | Form 1040NR for the covered year | By the standard nonresident deadlines, or extended if applicable |
Compliance guardrails you should know
- The regulation allows the IRS to enter withholding agreements for personal services. The agreement is effective only after all parties sign.
- Absent a reliable agreement, payers must withhold at statutory rates, generally 30% on independent personal services.
- The IRS will not accept applications inside 45 days of the first event. Build the timeline backward.
The simplest way to keep momentum is to treat the CWA package like a show advance. Confirm the who, what, when, and how on paper, then ship it before the 45‑day mark.
For Accounting Firms, Make CWA Season Boring
If you run a firm, your constraint is not demand, it is delivery. Spikes in artist and athlete work create review bottlenecks, documentation gaps, and deadline risk. The fix is a disciplined workflow that turns CWAs into repeatable work, not heroics.
Here is a practical way to systematize it:
Build a standard CWA kit
- A single intake form that captures itinerary, contracts, deal points, and IDs
- A budget template with pre‑built categories and notes for how each line ties to projected net income
- A withholding agent readiness checklist with EIN and EFTPS enrollment steps
- A filing timeline that counts back 60 to 75 days so your team never trips the 45‑day wire
Use layered review, not partner bottlenecks
- First pass checks completeness against the intake and budget
- Second pass reconciles contracts to budget and itinerary
- Final pass confirms deposit schedule, forms, and signatures for submission
Where Accountably fits, lightly
When your team is buried in production around peak season, consider structured offshore support that works inside your workflow, your templates, and your security standards. At Accountably, we integrate trained teams that prepare workpapers, standardize files, and protect review time so partners can focus on client strategy. Keep the focus on disciplined delivery, accurate filings, and on‑time submissions.
Final pointers and a simple CTA
- Calendar the 45‑day deadline, then work backward with internal milestones.
- Do not wait on the SSN to start, document the TIN path and keep IDs consistent.
- Tie every dollar in the budget to a contract or a reasonable memo.
- Name a single owner for each CWA and track deposits and reporting until 1042‑S and 1040NR are filed.
If you want help turning this into a repeatable, well‑controlled process inside your firm, our team can share a checklist and review template. Book a quick session and we will walk you through a CWA kit you can deploy next week.