As colleges and universities navigate increasingly complex reporting obligations for payments made to non-U.S. persons, having the right processes in place is critical. From filing requirements and deposit deadlines to documentation and reconciliation, institutions must take a coordinated approach to Form 1042 compliance.

In part two of this series, Melanie McPeak, Managing Director and Tax Leader of the Firm’s Not-for-Profit industry practice, is joined again by Tahira Nagda, Managing Director and Compliance & Provision Lead in Cherry Bekaert’s International Tax practice. Together, they discuss reporting requirements and practical considerations surrounding Form 1042 compliance for payments made to non-U.S. individuals, including students, scholars and other foreign payees.

Listen to learn about:

• Key filing deadlines and deposit obligations
• Common compliance mistakes and audit triggers
• Reconciliation and documentation considerations
• Coordination across departments involved in the compliance process
• Process considerations that can help reduce risk
• Why Form 1042 compliance extends beyond tax

Cherry Bekaert’s Not-for-Profit and International Tax teams help higher education institutions navigate complex withholding and reporting obligations while strengthening compliance processes. For additional guidance or support, connect with your Cherry Bekaert advisor or reach out to our team.

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• Podcast: 1042 Compliance Risks for Non‑U.S. Student Financial Aid: Part 1

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Compliance Risks for Non-U.S. Student Financial Aid: Part 1

As colleges and universities continue expanding their global reach, compliance requirements related to payments made to foreign students and scholars have become increasingly complex. From scholarship withholding rules to treaty documentation requirements, institutions must understand their responsibilities under Form 1042 reporting obligations.

In this episode of Cherry Bekaert’s Not-for-Profit podcast series, Melanie McPeak, Managing Director and Tax Leader of the Firm’s Not-for-Profit Industry practice, is joined by Tahira Nagda, Managing Director and Compliance & Provision Lead in Cherry Bekaert’s International Tax practice. Together, they discuss key compliance considerations surrounding Form 1042 reporting for payments made to non-U.S. students and scholars.

Listen to learn about:

• Form 1042 reporting requirements
• Who qualifies as a foreign person
• Tax treatment of scholarships and stipends
• Common withholding rates and treaty exemptions
• Required documentation, including Forms W-8BEN and 8233
• Honoraria and common payment classification issues
• IRS audit focus areas for higher education institutions
• Penalties and risks tied to noncompliance

This episode is part one of a two-part series on Form 1042 compliance for foreign students and scholars. Cherry Bekaert’s Not-for-Profit and International Tax teams help higher education institutions navigate complex withholding and reporting obligations while strengthening compliance processes.

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In today's complex financial landscape, effective endowment management is more critical than ever to provide a stable source of funding that supports long-term missions. In this episode of Cherry Bekaert’s Not-for-Profits podcast, Jason Sturdevant, NFP Accounting Advisory Senior Manager, is joined by Blakeley Richard, Co-host and NFP Accounting Advisory Manager, to give an overview of endowments and how they can help an organization drive success.

Listen to this episode to learn about:

• Common misconceptions with endowment accounting
• Definitions of significant terms for endowments
• Frequent endowment accounting mistakes and errors
• Overview of underwater endowments, fund accounting and policy needs
• Consequences for endowment mismanagement
• Endowment oversight responsibilities
• Best practices and recommendations for accounting for endowments

When endowments are managed effectively, they can provide significant resources to enable organizations to carry out their mission well into the future. However, mismanagement can result in significant time and resource costs.

Cherry Bekaert's Not-for-Profit Accounting Advisory team offers comprehensive advisory services that enables nonprofits to overcome challenges and maximize the benefits that endowments can provide. Our knowledge in crafting tailored solutions allows institutions to align their financial strategies with their long-term goals and mission-driven objectives.

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