1. Introduction: What is Form 13920?

IRS Form 13920, officially titled Directed Withholding and Deposit Verification, is a specialized compliance and verification document published by the Internal Revenue Service (IRS). The IRS is a bureau of the United States Department of the Treasury responsible for administering the federal internal revenue code and enforcing international withholding regulations.

Unlike personal tax returns filed by wage earners or business profit schedules, Form 13920 is an event-specific verification document used in the entertainment and sports industries. It is managed by specialized international compliance units within the IRS Large Business and International (LB&I) and Small Business/Self-Employed (SB/SE) divisions.

When foreign athletes, musicians, or theatrical performers tour the United States, federal tax law requires event promoters and venues to withhold tax from their compensation. Form 13920 is the official form used by these withholding agents to verify to the IRS that the directed tax withholding was deducted from the performer’s settlement and deposited into the U.S. Treasury.

2. Purpose of the Form

Under Section 1441(a) of the Internal Revenue Code, payments made to nonresident aliens for independent personal services in the United States are generally subject to a mandatory 30% gross withholding tax. For touring musicians or professional athletes, withholding 30% of gross ticket sales or appearance fees often results in excessive over-withholding because it ignores significant tour expenses like travel, equipment, crew salaries, and venue rentals.

To prevent this hardship, foreign performers can apply for a Central Withholding Agreement (CWA) using Form 13930. Under Treasury Regulation Section 1.1441-4(b)(3), a CWA allows the IRS to budget the tour’s estimated net income and direct withholding at graduated tax rates rather than a flat 30% on gross revenue.

Form 13920 exists to ensure accountability under this system. When the IRS issues directed withholding instructions for a specific performance, the local promoter or venue (acting as the withholding agent) must deduct the required tax upon settlement. Form 13920 provides the written proof that the promoter withheld the exact required sum and deposited it through the federal payment system, ensuring the foreign artist receives proper credit on their IRS account.

3. Who Needs to File This Form

Form 13920 is completed by U.S. withholding agents responsible for paying foreign entertainers and athletes. You need to file this form if you belong to any of the following categories:

Concert & Tour Promoters: Entities staging musical concerts, theatrical productions, or multi-city tours featuring foreign performers subject to a CWA.
Athletic Event Organizers: Tournament directors and sports leagues (such as tennis opens, golf tournaments, or motorsports events) paying prize money or appearance fees to nonresident alien competitors.
Venues, Theaters & Arenas: Facilities that handle direct box-office settlements and pay foreign artists under an IRS directed withholding letter.
Designated Central Withholding Agents: Independent escrow agents or business management firms appointed under a formal CWA to handle tax withholdings for an entire U.S. tour.

The form is completed and certified by the withholding agent’s financial officer or settlement manager. Foreign performers do not file Form 13920 themselves.

4. Who Is Exempt / Not Required to File

Because Form 13920 is strictly a verification voucher for directed international withholding, most businesses and taxpayers do not use it:

Nonresident Alien Performers: Foreign musicians, actors, and athletes do not file Form 13920; they report their earnings annually on Form 1040-NR.
Payers of U.S. Citizens & Residents: Promoters paying domestic performers who provide a valid Form W-9 are exempt from nonresident alien withholding rules and do not file this form.
Standard 30% Withholding Without a CWA: Payers who withhold the standard 30% tax under Section 1441 without special IRS directed instructions report those deposits on annual Form 1042 rather than Form 13920.
Standard Employers: Businesses paying regular W-2 employees report payroll withholdings using Form 941, not Form 13920.

5. When to File

Form 13920 is an event-driven form tied directly to the date of the performance and the execution of the financial settlement:

Immediately Post-Performance: The form must be completed after the event concludes and the box-office or contract settlement is finalized.
After the Federal Tax Deposit: The withholding agent must first deposit the withheld funds through the Electronic Federal Tax Payment System (EFTPS) and then submit Form 13920 with the deposit confirmation attached.
Prompt Submission Timeline: While deadlines are established in the specific CWA or directed withholding letter, agents typically submit Form 13920 within 5 to 10 business days following the performance to keep the artist’s CWA in compliance.

6. Where and How to File

Form 13920 cannot be submitted through consumer tax preparation software like TurboTax. It is an administrative document submitted directly to the IRS Central Withholding Agreement program staff.

Withholding agents typically deliver Form 13920 via secure dedicated fax or email directly to the IRS CWA Specialist assigned to the performer’s case. In some cases, the form may be mailed to the specific IRS address as per instructions on the original directed withholding letter or CWA agreement.

Mandatory Attachment: Form 13920 must always be accompanied by a copy of the official EFTPS deposit confirmation receipt showing the date, payment trace number, and exact dollar amount deposited. Always keep copies of the settlement sheet, Form 13920, and deposit receipts in your corporate records.

7. Step-by-Step Instructions to Fill the Form

Form 13920 is a concise one-page verification voucher. Review the table below for a line-by-line guide to completing the form.

Field Name	Required Information	Instructions for Withholding Agents
Athlete / Entertainer	Performer’s Identity	Enter the individual artist’s legal name, stage name, or the official name of the performing group matching the CWA.
Performance Date	Date of Event	Record the specific date (MMDDYYYY) on which the concert, match, or performance took place.
Withholding Agent Details	Payer Legal Identity	Enter the legal business name of the promoter, venue, or company, business address, phone, and fax number.
Agent’s EIN	Employer Identification Number	Provide the withholding agent’s 9-digit federal Employer Identification Number (EIN).
Settlement Amount	Total Compensation ($)	Record the total gross payout, guarantee, or net box-office settlement amount paid to the performer.
Amount Withheld	Federal Tax Deducted ($)	Enter the exact dollar amount of federal income tax withheld from the artist’s settlement.
Deposit Date	EFTPS Deposit Date	Enter the date (MMDDYYYY) the withheld tax was deposited into the U.S. Treasury via EFTPS.
Person to Contact	IRS Specialist Name	List the specific IRS CWA Specialist identified on the top or bottom of your directed withholding letter.
Signature & Date	Agent Authorization	An authorized financial officer signs and dates the document, certifying the accuracy of the withholding data.

Verifying the Deposit with EFTPS

When completing the deposit information, withholding agents must ensure the electronic transfer is executed correctly:

Use the Correct Tax Form Category: When making the deposit in EFTPS, select Form 1042 (Annual Withholding Tax Return for U.S. Source Income of Foreign Persons) as the tax type.
Record the Correct Tax Year: Ensure the deposit is credited to the calendar year in which the performance occurred.
Attach the Trace Receipt: Print the final EFTPS payment confirmation page showing the Electronic Funds Transfer (EFT) acknowledgment number and attach it directly to Form 13920.

8. Required Documents/Information Needed Before Filling

Before preparing Form 13920, assemble the following operational records to ensure all numbers reconcile:

The IRS Directed Withholding Letter or CWA: The official IRS document specifying the required withholding percentage or flat dollar amount for the event.
The Event Settlement Sheet: The finalized accounting statement showing gross ticket revenue, production deductions, artist guarantees, and net payouts.
EFTPS Payment Confirmation: The digital confirmation receipt showing the exact date, dollar amount, and trace number of the tax deposit.
Withholding Agent Identification: The promoter’s or venue’s legal business name and Employer Identification Number (EIN).
Performer Identification: The artist’s legal name, Individual Taxpayer Identification Number (ITIN) or SSN, and CWA case tracking number.

9. Common Mistakes to Avoid

Errors on Form 13920 can disrupt the performer’s tour agreement or expose the promoter to tax liabilities. Avoid these frequent mistakes:

Omitting the EFTPS Deposit Receipt: The IRS will reject Form 13920 if it is submitted without the accompanying electronic payment confirmation.
Holding the Form Until Year-End: Form 13920 is an event-level report. Waiting until annual Form 1042 filing season violates CWA requirements and delays the artist’s tax credits.
Withholding the Wrong Amount: Deducting the standard 30% gross tax when the IRS issued a CWA directing a lower specific rate creates contractual disputes with the artist.
Depositing Under the Wrong Form in EFTPS: Depositing funds under Form 941 (payroll) instead of Form 1042 (foreign withholding) causes system misallocations that take months to resolve.
Mailing to a General Service Campus: Sending Form 13920 to a standard IRS tax processing center will result in the document being lost. It must go directly to the assigned CWA Specialist.

10. Penalties for Non-Filing or Errors

Failing to execute directed withholding or properly submit Form 13920 carries severe statutory consequences for the withholding agent:

Personal Liability for the Tax: Under Section 1461 of the Internal Revenue Code, the withholding agent is personally liable for any unwithheld tax. If you fail to withhold as directed, the IRS can collect the entire unpaid tax balance directly from the promoter or venue.
Failure to Deposit Penalties: Late, incomplete, or missing EFTPS deposits trigger penalties under IRC Section 6656 ranging from 2% to 15% of the underpayment, plus compounding interest.
Cancellation of the Artist’s CWA: If a promoter fails to deposit funds and verify withholding via Form 13920, the IRS may revoke the artist’s Central Withholding Agreement, forcing all subsequent venues on the tour to withhold a full 30% on gross revenue.
False Statements Liability: Knowingly reporting false withholding figures or fabricating deposit confirmation numbers violates 18 U.S.C. Section 1001, carrying criminal fines and imprisonment.

11. Related Forms or Schedules

Form 13920 functions within a specialized international tax compliance framework:

Form 13930: Application for Central Withholding Agreement
Form 13930-A: Application for Central Withholding Agreement Less than $10,000
Form 1042: Annual Withholding Tax Return for U.S. Source Income of Foreign Persons
Form 1042-S: Foreign Person’s U.S. Source Income Subject to Withholding
Form 1040-NR: U.S. Nonresident Alien Income Tax Return
Form 8804: Annual Return for Partnership Withholding Tax (Section 1446)
Publication 515: Withholding of Tax on Nonresident Aliens and Foreign Entities
Publication 901: U.S. Tax Treaties

12. Frequently Asked Questions

What is a Central Withholding Agreement (CWA)?

A CWA is a formal legal agreement between a nonresident alien artist or athlete, a designated withholding agent, and the IRS. It allows federal tax withholding on entertainment or athletic tours to be calculated on projected net income at graduated rates rather than a flat 30% on gross revenue.

Who fills out Form 13920: the artist or the promoter?

The promoter, venue, or designated withholding agent completes and signs Form 13920. The foreign artist never completes this form, though their management receives a copy as proof of tax withheld from their settlement.

Does submitting Form 13920 replace annual Form 1042 and Form 1042-S reporting?

No. Form 13920 is strictly an event-level verification form. The withholding agent must still file annual Form 1042 to summarize all foreign payments and issue Form 1042-S to the performer by March 15 following the tax year.

How do I prove that the tax deposit was made?

You must attach a copy of the official confirmation printout from the Electronic Federal Tax Payment System (EFTPS) showing the payment trace number, deposit date, and dollar amount matching the figure entered on Form 13920.

What happens if the promoter fails to withhold the required tax?

If the promoter fails to withhold the directed tax, the IRS will hold the promoter personally liable for the full unwithheld tax amount under IRC Section 1461, along with failure-to-deposit penalties and interest.

Can Form 13920 be submitted online?

While Form 13920 is not submitted through standard tax preparation portals, withholding agents frequently transmit completed digital PDFs and EFTPS receipts via secure email or direct fax to the assigned IRS CWA Specialist managing the tour.

13. Conclusion: Key Takeaways Summarized

IRS Form 13920 is an essential compliance link in the taxation of international athletes and entertainers touring the United States. Keep these primary points in mind:

Verifies Directed Withholding: Form 13920 serves as the official proof that a promoter or venue withheld and deposited federal taxes under a CWA or directed withholding notice.
Completed by Withholding Agents: Event promoters, venue managers, and designated withholding agents complete and sign the form, not the foreign performer.
Attach Deposit Proof: Every Form 13920 must include a verified EFTPS deposit confirmation showing the payment trace number and date.
Withholder Personal Liability: Failing to withhold or verify deposits exposes the promoter to personal liability for the full tax amount under Section 1461.
Deliver Directly to CWA Staff: Submit the completed form and payment receipt directly to your assigned IRS CWA Specialist as per instructions on your directive notice.

IRS Form 13920 Guide: Directed Withholding & Deposit Steps