@ArinaStan , under many circumstances I would heartily agree with @guywong, that you should issue a 1042-S showing the earnings and withholdings ( acting as withholding agent ). However, if the beneficiary / recipient is in the US and is on a dependent visa then you may have to issue 1099 ( depending on the tax status of the primary visa holder). Also note that the general rule for NRAs, absent any tax treaty assertions, is 30% federal withholding rate.
As an aside , should we assume that this earned interest is related a loan, mortgaged asset or what ? I ask because some these situations may require more delving into.
Is there more I can do for yopu ?
