who is considered a foreign partner
A partnership that has income effectively connected with a U.S. trade or business is required to pay a withholding tax on the effectively connected taxable income that is allocable to its foreign partners. A foreign partner is anyone who is not considered a U.S. person.This includes nonresident aliens, foreign corporations, foreign partnerships, and foreign trusts or estates.hese payments are then reported on the foreign partnerâs U.S. income tax return and will offset the U.S. tax liability ultimately assessed on him personally. The withholding tax must be paid on a quarterly basis, before the fifteenth day of the fourth, sixth, ninth, and twelfth months of the partnershipâs tax year.