XXVI Holdings Inc letter Important Tax Return

If you are reading this, you probably have received a paper letter in your mail stating that there’s an important tax return document enclosed, and the sender’s name is 26 Holdings Incorporated.

If you open the letter, you will see several pages of Form 1042-S from the Department of the Treasury, Internal Revenue Service. At the top of the form, it states that it’s for “Foreign Person’s U.S. Source Income.” This form applies to foreign nationals. If you were a U.S. citizen, you would normally have to pay taxes in the U.S. even if you’re abroad or your income source is worldwide. The United States has treaties to avoid double taxation with several countries. However, there is an entire FATCA regulation aimed at making it very difficult for U.S. citizens to avoid paying taxes in the U.S.

Since you are a foreign national, this particular form is related to withholding payments. The key detail to check is Box 7a. If there is any amount shown in this box, you may try to file a U.S. tax return form. With some luck, you might be able to get this amount that was withheld as taxes back from the U.S. Treasury. However, if this box says 0, it means that no money has been withheld, and in this case, you don’t need to take any action—just relax.

If you’re wondering why you received this form, it’s likely from Google. If you’re a partner in the Google AdSense program, you probably joined AdSense as a webmaster displaying Google ads on your website. Alternatively, you might be an app developer with Google ads in your Google Play Store app. However, in most cases, you will receive this form if you are a YouTuber enrolled in the YouTube Partner Program. This means your videos display ads from Google, and your channel generates revenue from that source.

Since Google is an American company incorporated in the U.S. and pays taxes there, they are obligated to report all payments to their partners to the tax authorities in the United States. If the letter did not come directly from Google, it is likely that a third party or one of their subsidiaries handled the mailing process.

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