nonresident alien tax compliance a policy and … · nonresident alien tax compliance a policy and...
TRANSCRIPT
NONRESIDENTALIENTAXCOMPLIANCE
APolicyandProcedureManual
UniversityofNevadaReno(UNR)NonresidentAlienTaxSpecialist–KellieGrahmann
CONTENTSNonresidentAlienTaxComplianceSummaryTaxationofNon‐U.S.CitizensandNon‐PermanentResidentAliensTypesofPaymentsMadetoNonresidentAliensPossibleExemptionsfromTaxWithholdingTaxWithholdingRatesforNonresidentAliensDeterminingU.S.TaxResidencyStatus TheSubstantialPresenceTestThe“ExemptIndividual”RulesPaymentsMadeThroughthePayrollSystem FormW‐4(Employee’sWithholdingAllowanceCertificate) FICATaxWithholding PaymentsMadeThroughAccountsPayableU.S.TaxInformationforNRAGuestSpeakers/Consultant/IndependentContractorsProceduresforPayingNRAGuestSpeakers/Consultant/IndependentContractors
PaymentstoForeignCompanies/EntitiesTypesofW‐8FormsforForeignCompaniesU.S.TaxInformationforNonresidentAlienStudentsPaymentsCreditedToaStudentAccount IncomeTaxTreaties FormsRequiredForExemptionunderanIncomeTaxTreaty
SocialSecurityandIndividualTaxpayerIdentificationNumbersDefinitionsVisaClassifications
NonresidentAlienTaxComplianceSummaryTheinformationcontainedinthismanualisdesignedtoserveasareferencetoolfordepartmentrepresentativeswhenmakingpaymentstooronbehalfofnonresidentalienstudents,employees,guestspeakers,consultants,orotherpayees.Becausetheissuesofnonresidentalientaxcompliancecanbecomplexandconfusing,theNevadaSystemofHigherEducation(NSHE)hasdesignatedanonresidentalientaxspecialistateachinstitutiontomonitorandreviewtheU.S.taxliabilityforallpaymentsmadetooronbehalfofanonresidentalienindividual.Eachdepartmentrepresentativewillbeaskedtocollectcertainformsandotherinformation;theNonresidentAlienTaxSpecialist(NRATS)willusetheformsandinformationcollectedtomakealltaxwithholdingandreportingdecisions.AsummaryofthebasicproceduresformakingpaymentstononresidentalienindividualsasapplicabletoNSHEissetforthbelow:
AllpaymentsmadebytheUniversitytooronbehalfofanindividualmustbereviewedtodeterminetheU.S.taxresidencystatusofthepayeeorbeneficiaryofthepayment.
ForU.S.taxpurposes,therearefourcategoriesoftaxresidencystatus:U.S.Citizen,
PermanentResidentAlien,andResidentAlienforTaxPurposesandNonresidentAlienforU.S.TaxPurposes.
Allpaymentsmadetooronbehalfofanonresidentalienaregenerallysubjecttoincometax
withholdingunlessspecificallyexemptedeitherbytheU.S.taxlaworanincometaxtreaty.
AllpaymentsmadetooronbehalfofanonresidentalienaregenerallyrequiredtobereportedtotheInternalRevenueService(IRS),regardlessofwhetherthepaymentistaxable.
Examplesofpaymentsmadetononresidentaliensinclude,butnotlimitedto:
o Compensation Salary/Wageso Scholarships/Fellowships LivingAllowanceso Stipends Awards/Prizeso IndependentContractorPayments ConsultantPaymentso CertainTravelExpenses/Reimbursements Honorariao BookAllowances RoyaltiesandInterest
Note:Paymentsdonothavetobepaidincashormadedirectlytotheindividualtobeconsideredincome.Paymentsmadetoathirdpartyonbehalfoftheindividualarealsosubjecttothewithholdingandreportingrules.
Eachpaymentrequiresthereviewofcertainkeyfactors,includingthe(i)individual’sU.S.
taxresidencystatus,(ii)individual’svisa/immigrationstatus,and(iii)typeofpaymentmadetotheindividual.
Insomecases,iftheindividualdoesnotperformanyactivitiesintheU.S.relatedtothepayment,thepaymentwillnotrequiretaxwithholdingorreporting.
Therearetaxtreatieswithanumberofforeigncountries,eachofwhichcontainspecificrequirementsforexemption.IfanonresidentalienwishestoclaimanexemptionfromU.S.taxwithholdingbecauseofanincometaxtreaty,theindividualmustmeetwithNRATSto
claimandsignatreatyexemptionandfileoneorbothofthefollowingtwoformstoclaimtheexemption:
FormW‐8BEN(scholarship,fellowship,grant,stipend,andotherroyaltypayments) Form8233(Consultant,Honoraria,independentContractorandemployeepayments)
TheamountofU.S.incometaxwithhelddependsonthetypeofpayment:
o Scholarship,fellowship,grant,non‐service,stipendpayments 14%o Consultant,honoraria,independentcontractorpayments 30%o Compensationpaidtoemployees GraduatedWithholdingo Royalties(Copyright,software) 30%
Form1042‐Sistheannualtaxstatementusedtoreportmostpaymentsandtaxwithholding
tononresidentaliens.TheformmustbeissuedbyNSHEtoboththeIRSandthenonresidentaliennolaterthanMarch15.
Iftheindividualreceivestaxablewages,theymightreceiveForm1042‐SandFormW‐2.
TaxationofNon‐U.S.CitizensandNon‐PermanentResidentAliensUnderU.S.taxlaws,allnon‐U.S.citizensandnon‐permanentresidentaliensareconsideredtobeeither"residentaliens"or"nonresidentaliens"fortaxpurposes.ResidentaliensaretaxedontheirworldwideincomeinthesamemannerasU.S.citizens;nonresidentaliens,however,aretaxedonlyonincomefromU.S.sourcesunderspecialrules.ResidencystatusrulesfortaxpurposesaregovernedbytheIRSandtheTreasuryDepartment.Theresidencystatusrulesfortaxpurposesarerelatedto,butarenotthesameas,theresidencystatusrulesforimmigrationpurposes,whicharegovernedbytheUnitedStatesCitizenshipandImmigrationService(USCIS).Unlessotherwisestated,theinformationcontainedinthisdocumentpertainstoU.S.residencystatusfortaxpurposesonly.U.S.taxlawrequiresNSHEtowithholdfederalincometaxfromandreporttotheIRSallpaymentsmadetooronthebehalfofanonresidentalien.PleasenotethattheU.S.taxwithholdingandreportingrulesgoverningnonresidentaliensarequitedifferentthanthosegoverningU.S.citizensandresidentaliens.Inordertobeincompliancewiththenonresidentalientaxwithholdingandreportingrules,NSHEmustbeabletoidentifyallpaymentsmadetoanonresidentalienortoathirdpartyontheirbehalf.NSHEisthenrequiredtoapplytheappropriatetaxwithholdingandreportthepaymentsmadetothoseindividualsinthecorrectmanner.FailuretocomplywiththeIRStaxlawandregulationsmayresultinasignificantpotentialtaxliabilityandfinesforNSHE.TheDepartmentrepresentativeswillberesponsiblefor:
DeterminingwhethertheindividualisaU.S.citizenorpermanentresidentalien ContactingtheNonresidentAlienTaxSpecialist(NRATS)andpossiblytheOfficeof
InternationalStudentsandScholarsbeforehiringorbringingaforeignnationaltoUNR. ContactingtheNRATSforanappointmentforyourForeignNational.Newemployeeswill
contacttheNRATSdirectlyTheNRATSwillberesponsiblefor:
MakingallU.S.taxresidencystatusdeterminations MonitoringallpaymentsmadebyNSHEforpossiblenonresidentalientaxwithholdingand
reportingliability Makingalltaxwithholdingandreportingdecisionsbasedontheinformationcollected EnsuringcompliancewithallIRSrulesandregulationswithrespecttopaymentsto
nonresidentaliens
TypesofPaymentsMadetoNonresidentAliensNSHEisrequiredtowithholdU.S.incometaxatthetimeapaymentismadetoanonresidentalien(NRA)orathirdpartyontheirbehalf;ifNSHEdoesnotwithholdtheappropriateamountoftaxatthetimeofpayment,NSHEmaybeheldliableforthetaxnotwithheld.Thetypesofpaymentstowhichthisruleappliesinclude,butnotlimitedto:
Wages,SalaryorCompensation IndependentContractorPayments/ConsultantFees Scholarships/Fellowships Stipends/LivingAllowances BookAllowances HonorariaorGuestSpeakerFees Prizes/Awards Royalties/Commissions CertainTravelReimbursements Interest
AfterNSHEhasdeterminedtheindividual’sresidencystatusfortaxpurposesandtheamountofincomesubjecttotaxation,NSHEmustthendeterminetheappropriateamountoftaxtowithholdandmustcollectanyadditionalrequiredinformation.Thesewithholdingandreportingdeterminationsarebaseduponthetypeofpaymentmade.Non‐employeepaymentsmadetononresidentaliensaresubjecttoageneral30percenttaxwithholdingrate;however,scholarshipsandfellowships,whichrequirenoservicetobeperformedasaconditionofthepayment,maybesubjecttoareducedwithholdingrateof14percent.CompensationpaidtononresidentalienemployeesissubjecttotheU.S.graduatedratesoftaxwithholding;however;somerestrictionspertainingtomaritalstatusandwithholdingallowanceswillapply.
PossibleExemptionsfromTaxWithholding
AnIndividualmaybeeligibletoclaimanexemptionfromthe30or14percentorspecialgraduatedratesofwithholdingifheorshethequalifiesforanincometaxtreatyexemption.AnincometaxtreatyisanagreementbetweentheU.S.andaforeigncountrythatisintendedtoalleviatedoubletaxation.Incometaxtreatiesalsocontainvariousprovisionsdesignedtopromotecross‐culturaleducationandexchangebyallowingstudents,teachers,andresearchersofonecountrytoperformcertainrelatedactivitiesintheothercountryandreceiveanexemptionfromtax.Taxtreatyexemptionsareusuallyonlyvalidforalimitedtimeperiodand/orforaspecifieddollaramount.Anindividualmustmeetthequalificationsofaparticulartaxtreatyinordertoclaimanexemptionandmustcompleteaformrequestingtheexemption.TheindividualwillneedtohaveasocialsecuritynumberoranindividualtaxpayerIdentificationnumber(ITIN)tobeeligiblefortreatybenefits.TheNRATSwillreviewthedocumentstodeterminewhethertheindividualqualifiesforataxtreatyexemptionandwillsubmitallnecessaryformsonbehalfoftheindividualtotheIRS.
RequiredFormsforNonresidentAlienTaxComplianceFollowingisageneraloverviewoftheformsanddocumentsrequiredinconnectionwithpaymentsmadetononresidentaliens;theproceduresforprocessingeachtypeofpaymentareincludedinsubsequentpages.Failuretofollowthepaymentprocessingstepssetforthinthismanualwillresultinthemaximumamountoftaxwithholdingfortheindividualand/orasignificantpotentialtaxliabilityforNSHE.Therefore,itisessentialthatalldeans,departmentchairpersons,administratorsandotherpersonnelclearlyunderstandandcomplywithNSHEproceduresforpaymentsmadetononresidentaliensassetforthinthismanual.EMPLOYEESAllEmployeesClassificationsIncludingStudentEmployees
STUDENTSF,J,M,orQvisaholdersreceivingscholarshiporfellowshipgrants/stipends(noservicerequired)inexcessoftuitionandrequiredfees
WithTreatyExemption
WithoutTreatyExemption
WithTreatyExemption
WithoutTreatyExemption
NRAinfoCollectionForm(FNIS)
MeetwithNRATS
Passport Visa I‐94 I‐20,DS‐2019,
andorI‐797 W‐8BEN Form8233 FormW‐4 SSN
NRAinfoCollectionForm(FNIS)
MeetwithNRATS
Passport Visa I‐94 I‐20,DS‐2019,
andorI‐797 W‐8BEN FormW‐4 SSN
NRAinfoCollectionForm(FNIS)
MeetwithNRATS
FormW‐7(IfnoSocialSecurityNumber)
Passport Visa I‐94 I‐20,DS‐2019,
andorI‐797 W‐8BEN Form8233 SSN
NRAinfoCollectionForm(FNIS)
MeetwithNRATS
FormW‐7(IfnoSocialSecurityNumber)
Passport Visa I‐94 I‐20,DS‐2019,
andorI‐797 W‐8BEN
Document Collection Checklist
For Nonresident Alien Employees to Bring To NRATS Meeting
INDEPENDENTCONTRACTORSGUESTSPEAKERSANDHONORARIARECIPIENTS
WithTreatyExemption
WithoutTreatyExemption
NRAinfoCollectionForm(FNIS) MeetwithNRATS SocialSecurityNumber Passport Visa I‐94 I‐20,DS‐2019,andorI‐797 W‐8BEN Form8233
NRAinfoCollectionForm(FNIS) MeetwithNRATS Passport Visa I‐94 I‐20,DS‐2019,andorI797 W‐8BEN
Passport
Bio Page with Picture
Visa with Picture and Stamp(s)
Entry Stamp(s)
Other Stamp(s), including extension
I‐94 Most Recent I‐94 Results
Travel History
DS‐2019,
I‐797, or I‐20 All Pages
Social Security Card Or, the social security number application
receipt letter, if just applied for
Other Documents For example, EAD Card
FNIS Data Sheet All Pages
TaxWithholdingRatesforNonresidentAliensTheIRSrequiresthataspecialtaxwithholdingratesbeappliedtoallpaymentsmadetooronbehalfofnonresidentalienindividuals.Therateoftaxwithholdingisdependentuponthetypeofnonresidentalienrecipientandthetypeofincomepaid.Thefollowingchartsetsforththegenerallyapplicabletaxwithholdingrates.
EMPLOYEESAllEmployeesClassificationsIncludingStudentEmployees
INDEPENDENTCONTRACTORS
GUESTSPEAKERSAND
HONORARIARECIPIENTS
STUDENTSF,J,M,orQvisaholdersreceivingscholarshiporfellowshipgrants/stipends(noservicerequired)inexcessoftuitionandrequiredfees
WithTreatyExemption
WithoutTreatyExemption
WithTreatyExemption
WithoutTreatyExemption
WithTreatyExemption
WithoutTreatyExemption
0%**
Withholdingratesusing“single,”onewithholdingallowance
0%**
30%
0%**
14%
*IndividualsfromCanada,Mexico,Japan,SouthKorea,AmericanSamoa,theNorthernMarianaIslandsandstudentsfromIndiamaybe,incertaincases,eligibleforadditionalwithholdingallowances.**Pleasenotethatincometaxtreatiescontainannualdollarand/ortimelimitsforincometaxexemption.Ifpaymentstoanindividualmeetorexceedthedollarand/ortimelimits,thetaxtreatyexemptionisnolongerapplicable,andinsomecases,mayevenberetroactive.
DeterminingU.S.TaxResidencyStatusIstheIndividualaU.S.ResidentAlienorNonresidentAlienforTaxPurposes?TheAlienInformationCollectionFormisdesignedtocollecttheinformationnecessarytodeterminetheU.S.taxresidencystatusofanindividualwhoisnotaU.S.citizen,permanentresidentalien,orimmigrant.TheAlienInformationCollectionFormcontainstheinformationnecessarytoapplythe"SubstantialPresenceTest,"whichisthetestusedbytheIRStomakesuchdeterminations.CompletionoftheAlienInformationCollectionFormistheonlymethodthatcanbeusedtodetermineanindividual'sU.S.residencystatus.TheformshouldbeusedtodeterminetheU.S.residencystatusforallcompensation,scholarship,fellowship,grant,andstipendrecipientsorconsultants,independentcontractors,orhonorariarecipients.Anindividual(notthedepartment)shouldcompletetheformusingthefollowinginstructions:1.NAMEANDADDRESS:EnteryournameandU.S.homeaddress/phonenumber.2.COUNTRYOFCITIZENSHIP:Enteryourcountryofcitizenship.3.U.S.SOCIALSECURITYORINDIVIDUALTAXPAYERIDENTIFICATIONNUMBER:EnteryourU.S.socialsecurityorindividualtaxpayeridentificationnumber.IfyouarefromCanada,donotenterasocialsecuritynumberissuedbytheCanadiangovernment.Ifyoudonothaveasocialsecuritynumber,youmustapplyforoneimmediately.Toapplyforasocialsecuritynumber,visitthenearestSocialSecurityAdministrationofficeorcall1‐800‐772‐1213.Ifyouhavealreadyappliedforasocialsecuritynumberbuthavenotyetreceivedthenumber,enter"Applied"inthebox.4.ADDRESSINHOMECOUNTRY:Enteryourpermanentforeignmailingaddressandyourcurrente‐mailaddress.5.INSTITUTIONDEPARTMENT:Enterthenameandphonenumberoftheuniversitydepartmentwithwhichyouareassociated.6.COUNTRYOFRESIDENCY:Enteryourcountryoftaxresidence.ThismaynotbethesameasyourcountryofCitizenship.Countryoftaxresidencewillbewhereyouaretaxedonyourglobalincomeandmaybeyourlocationofpermanentestablishment(home,etc.).7.RELATIONSHIPWITHNSHE:Indicatewhetheryouareanemployee,full‐timestudent,graduateassistant,studentworker,guestspeaker/consultantand/orvolunteer.8.PASSPORT/VISANUMBER:Enteryourpassportandvisanumbers9.CURRENTIMMIGRATIONSTATUS:IndicatethestatusofvisaonwhichyouarecurrentlypresentintheU.S.10.SPONSORINGINSTITUTION:Enterthenameoftheinstitutionthatsponsoredtheissuanceofyourvisa(forexample,UNR).
11.ORIGINALDATEOFENTRYTOU.S.:IndicatethefirstdateonwhichyouenteredtheU.S.forthepurposeofthisvisit.12.VISAEXPIRATION:EnterthedateyourpermissiontostayintheU.S.expires(pleaseusethedatefoundonyourFormI‐20,DS‐2019,andI‐797orentrystampinpassport).13.PRIORVISIT:WereyoupresentintheU.S.priortothisparticularvisit?Ifyes,enterthedate(s)onwhichyouwerepresentintheU.S.andthetypeofvisaheldduringthevisit(s).Forbusinessortouriststatus,onlynotethecurrentyearandpriortwoyears.Anyotherstatus,recordyourentry/exitdatetotheU.S.andvisatype(s)goingbackfiveyears.SometravelhistorymaybeobtainedfromyourI‐94online.14.ESTIMATEDDATEOFDEPARTURE:EnterthedateonwhichyouplantoleavetheU.S.15.OTHEREDUCATIONALINSTITUTIONS:Ifyouhaveattended,arecurrentlyattending,and/orareaffiliatedwithothereducationalinstitutionsintheU.S.,indicatetheinstitution(s)andperiodofattendance.CompletingtheAlienInformationCollectionForm(blankforminblankformsattheend)16.STEP1OFTHESUBSTANTIALPRESENCETEST:IndicatewhetheryouareastudentpresentintheU.S.forlessthanfivecalendaryears,oraprofessor,researchscholar,trainee,alienphysician,short‐termscholar,orspecialistpresentintheU.S.forlessthantwocalendaryears.IfyoumarkedeitherboxinStep1oftheSubstantialPresenceTest,donotcompleteStep2oftheSubstantialPresenceTest;completeonlySectionsEandF.17.STEP2OFTHESUBSTANTIALPRESENCETEST:IfyoudidnotmarkaboxinStep1oftheSubstantialPresenceTest,indicatethenumberofdaysyouhavebeenpresentintheU.S.duringathreecalendaryearperiodbyfollowingtheinstructionsontheform.
CurrentYear:IndicatethenumberofdayspresentintheU.S.duringthecurrentcalendaryear;1stPrecedingYear:DeterminethenumberofdayspresentintheU.S.duringtheimmediatelyprecedingcalendaryearanddividethatnumberby3;2ndPrecedingYear:DeterminethenumberofdayspresentintheU.S.duringthesecondprecedingcalendaryearanddividethatnumberby6;Total:Addthecalculatednumbers.IftheTotalislessthan183days,youareanonresidentalien;iftheTotalisequaltoorgreaterthan183days,youarearesidentalien.
18.RESIDENCYSTATUS:IndicateyourresidencystatusbasedupontheresultsofStep1orStep2oftheSubstantialPresenceTest.19.SIGNATUREANDDATE:Signanddatetheform.Donotcompletetheshadedboxesontheform.Donotcompletetheshadedboxesontheform.
TheSubstantialPresenceTestThesubstantialpresencetestisamethodusedbytheIRStodetermineifanindividualshouldbetaxedasanonresidentalien.Thistestismadeeachyear,andingeneral,isacalculationofthenumberofdaysthatanindividualhasbeenorwillbephysicallypresentintheU.S.duringathreecalendaryearperiod.AnindividualistaxedinthesamemannerasaU.S.citizenifheorshemeetsthesubstantialpresencetestbybeingphysicallypresentintheU.S.foratleast183days,takingintoaccount
(i) allofthedayspresentintheU.S.duringthecurrentcalendaryear,
(ii) One‐thirdofthedayspresentintheU.S.duringthefirstprecedingcalendaryear,and
(iii) One‐sixthofthedayspresentintheU.S.duringthesecondprecedingcalendaryear.
TheNonresidentAlienTaxSpecialistwilluseinformationprovidedontheAlienInformationCollectionFormtocalculatethesubstantialpresencetest.The"ExemptIndividual"RulesCertainindividualsareexemptfromcountingdaystowardthesubstantialpresencetest.TheyareindividualswhoarepresentintheU.S.underthefollowingcircumstances:
o Ateacher,researcherortraineewhoistemporarilypresentintheU.S.underaJorQvisafortwocalendaryearsorless.
o AstudentwhoistemporarilypresentintheU.S.underanF,J,M,orQvisaforfivecalendaryearsorless.
o Aforeigngovernment‐relatedindividual(an"A"Visaholder).
Theterm"exemptindividual"asusedinconnectionwiththesubstantialpresencetestrefersonlytoanindividualwhois"exempt"fromhavingtocountdaysofpresenceintheU.S.Theterm"exemptindividual"doesnotrefertoanindividualwhois"exempt"frompayingfederalincomeorFICAtaxorfilingaU.S.incometaxreturn.
TheSubstantialPresenceTest
To determine whether the individual is a "nonresident alien or resident alien," administer the substantial presence test: If the individual has been or will be in the U.S. for less than 31 days in the current calendar year, he or she is automatically considered to be a nonresident alien for tax purposes, Or If the individual has been in the U.S. for 31 days or more and less than 183 days during a three year period include the current calendar year and the two immediately preceding calendar years using the following formula: All days present in U.S. during current calendar year + 1/3 of days present in U.S. during 1st preceding calendar year + 1/6 of days present in U.S. during 2nd preceding calendar year = Total number of days present in U.S. for tax purposes
PaymentsMadeThroughthePayrollSystemAllnewemployees(full‐time,part‐time,ortemporary)arerequiredtocompleteaFormI‐9(EmploymentEligibilityForm)atthetimeofhire.ItistheresponsibilityoftheHR/PersonnelorAuthorizedNSHErepresentativeand/orhisorherdesigneetocertifyFormI‐9andtodeterminethenewemployee'sU.S.citizen/permanentresidencystatusbyfollowingthestepssetforthinthissectionofthismanual.HowtoProcessaPaymentthroughthePayrollSystemStep1 TheHR/PersonnelorAuthorizedNSHErepresentativeresponsiblefor
administeringandcertifyingFormI‐9mustreviewtheinformationontheform(specificallythequestionregardingalienworkauthorization)todeterminewhetherthenewemployeeisaU.S.citizenorpermanentresidentalien.PleasekeepinmindthatallnewemployeesarerequiredtocompletethisquestionandprovideinformationabouttheirU.S.citizenshiporpermanentresidencystatusonthisform,regardlessofwhetherthereisreasontobelievethattheindividualmayormaynotbeaU.S.citizen.
Step2 IfthenewemployeeindicatesonFormI‐9thatheorsheisaU.S.citizenor
permanentresidentalien,thereisnochangetocurrentprocedures.Step3 IfthenewemployeeindicatesonFormI‐9thatheorsheisnotaU.S.citizenora
permanentresidentalien(i.e.,an"otheralienauthorizedtoworkuntil"),theHR/PersonnelorAuthorizedNSHErepresentativeresponsibleforadministeringandcertifyingFormI‐9mustrequestthatthenewemployeecompleteanAlienInformationCollectionFormandcontactNRATSforappointment.Thenewemployeemustal4sobeprovidedwithacopyoftheEmployeeNotificationSheetandadvisedthatthisinformationshouldbereviewedandtheappropriateproceduresfollowed.(AcopyoftheEmployeeNotificationSheetisattachedintheBlankFormssectionofthemanual).AsindicatedontheEmployeeNotificationSheet,theHR/PersonnelorAuthorizedNSHErepresentativemustalsonotifythenewemployeethatheorshemustscheduleanappointmenttomeetwiththeNRATS.ThenewemployeewillberequiredtosigntheEmployeeNotificationSheettoverifyreceipt.PotentialnonresidentalienemployeesshouldnotcompleteFormW‐4aspartofanyemploymentorientation.
Step4 ThenewemployeemusttaketheAlienInformationCollectionFormtomeetwith
theNRATSinordertoreviewtheform,discusstheapplicabletaxwithholdingstatus,andcompleteanyadditionaltaxforms.Toscheduleanappointment,emailnrat@unr.edu.Thenewemployeeshouldbringtotheappointmenthisorher(i)passport(s)whichincludesthevisa(s)andFormI‐94and(ii)FormDS‐2019(ifJvisaholder),FormI‐20(ifFvisaholder),orFormI‐797(ifH‐1Bvisaholder).FailureofthenewemployeetomeetwiththeNRATSinatimelymannerwillresultintaxwithholdingatthemaximumrates;anytaxwithheldduetofailuretocompletenecessaryformspriortopaymentcannotberefundedbyNSHE.
Step5 TheNRATSwillmeetwiththeForeignNationalandreviewtheindividual'staxsituationtodeterminetheirresidency,andwhethertheindividualqualifiesforaU.S.taxexemptionunderanincometaxtreaty.TheNRATSwillalsocompletetheW‐4forminaccordancewithspecialnonresidentalien(NRA)withholdingrates,andassisttheindividualwiththecompletionofanyandallotherrequiredforms.AFormW‐4shouldonlybecompletedunderthedirectionoftheNRATS;aFormW‐4completedinanyothermannerwillnotbeprocessed.TheNRATSwillalsodiscussgeneraltaxstructureintheU.S.,andtaxfilingresponsibilities.
FormW‐4(EmployeesWithholdingAllowanceCertificate)
HowtoCompleteFormW‐4Specialwithholdingtaxrulesapplytocompensationpaymentsmadetononresidentaliens.NonresidentaliensarerequiredtocompleteFormW‐4followingthespecialguidelinesdiscussedbelow.Also,notaxwithholdingisrequiredtotheextentthatthecompensationpaymentisexemptfromincometaxundereitheraprovisionoftheInternalRevenueCodeoranincometaxtreaty.FormW‐4shouldbecompletedbyallnonresidentalienemployeesduringtheirappointmentwiththeNRATS;however,foryourinformation,instructionsarebelow.AFormW‐4notcompletedwiththeNRATSwillnotbeprocessed.1.NAMEANDADDRESS:EnternameandU.S.mailingaddress.2.SOCIALSECURITYNUMBER:Entersocialsecuritynumber.3.MARITALSTATUS:Mark"Single"formaritalstatusregardlessofactualmaritalstatus.4.NAMECHANGE:Marktheboxonlyifthelastnamehaschangedsincetheindividualreceivedhisorhersocialsecuritycard.5.NUMBEROFALLOWANCES:Claimonlyonewithholdingallowancebyenteringa"1"online5,regardlessofthenumberofactualwithholdingallowances.IndividualsfromCanada,Mexico,AmericanSamoaandtheNorthernMarianaIslandsareentitledtothesamepersonalallowancesasU.S.citizens.IndividualsfromJapanandKoreaareentitledtoclaimoneallowanceforthemselvesandoneadditionalallowancefortheirspouseanddependentsthatarepresentwiththemintheU.S.StudentsfromIndiaareentitledtoclaimoneadditionalallowancefortheirspouse.6.ADDITIONALWITHHOLDING:NonresidentaliensarerequiredtohavenonresidentalienspecialwithholdingratesaspublishedinIRSPub15.StudentsfromIndiaarenotrequiredtohavetheadditionalamountwithheldandmayleavethislineblank.7.EXEMPTION:Anonresidentalienisnotpermittedtoclaim"Exempt"onthisline;inthecaseofanexemptionunderanincometaxtreaty,Form8233shouldbecompletedinadditiontoFormW‐4.FormW‐4shouldbecompletedinthemanneroutlinedaboveandwillapplyatthetimethetreaty‐basedexemptionnolongerapplies.8.SIGNATURE:Theindividualmustsignanddatetheform.
Nonresident Alien Employees
Nonresident aliens who receive employee
compensation are subject to graduated rates
of withholding and required to complete Form
W‐4 as follows, regardless of their actual
status: "Single" marital status; one withholding allowance; and NRA on line 6 designates special NRA withholding rates – see
IRS Pub 15.
FICATaxWithholdingTheF,J,M,andQVisaholderExceptionAbroadFICA(includesMedicare)taxexemptionexistsforallnonresidentalienF‐1,J‐1,M‐1,andQ‐1visaholderswhoareperformingservicestocarryouttheprimarypurposeoftheirvisa'sissuance.Aspreviouslydiscussed,F,J,M,andQstudentvisaholdersareexemptfromcountingdaysofpresenceintheU.S.underthesubstantialpresencetestforfivecalendaryears;JandQprofessor,researchscholar,trainee,alienphysician,short‐termscholar,orspecialistvisaholdersareexemptfromcountingdaysfortwocalendaryears.OncesuchanindividualisintheU.S.longenoughsoastolosehisorher"exemptindividual"status,theindividualmustbegincountingdaysofpresenceintheU.S.underthesubstantialpresencetest.Oncesuchanindividualcounts183daysofU.S.presencetowardthesubstantialpresencetest,heorsheisconsideredaresidentalienfortheentirecalendaryearandissubjecttoFICAtaxretroactivelytoJanuary1ofthatcalendaryear.EXAMPLE:IfaJ‐1researcherarrivedintheU.S.onFebruary1,2016,theresearcherwouldbeabletoexempt"twocalendaryearsfromcountingdaysofpresenceintheU.S.(e.g.,2016and2017).TheresearcherwouldbegincountingdaysofpresenceintheU.S.beginningonJanuary1,2018,andwouldtechnicallyqualifyasaU.S.residentfortaxpurposesafter183days,onJuly3,2018;however,theresearcherwouldbeconsideredaresidentalienretroactivelytoJanuary1,2018,andwouldbesubjecttoFICAtaxasofthatpriordate.Therefore,NSHEmustbeginwithholdingFICAtaxonJanuary1,2018,unlessthereisevidencethattheresearcherwillleavetheU.S.priortoJuly3,2018.Inaddition,inordertoqualifyfortheFICAtaxexemption,thenonresidentalien'sworkmustbe"performedtocarryoutthepurposespecifiedin"theF,J,M,andQvisa.Theindividualwilltypicallysatisfythisrequirementbybeingtheprimaryvisaholder(the“‐1"visaholder);however,thespouse/dependents(the"‐2"visaholders)willnotmeetthisrequirementbecausetheiremploymentdoesnot"carryoutthepurpose"oftheF‐2,J‐2,M‐2,orQ‐2visa.Therefore,the"‐2"visaholdersarenoteligiblefortheFICAtaxexception.AllFICAtaxexemptionswillbedeterminedandmonitoredbytheNRATSbaseduponinformationprovidedbytheindividualontheAlienInformationCollectionFormandtheindividual'svisadocumentation.Theindividualmustmeetallthreerequirementsasdiscussedaboveinordertoqualifyfortheexemption.Iftheindividual'svisaexpires,documentationofavisaextensionmustbeprovidedtotheNRATS;ifthenecessarydocumentationisnotprovided,theFICAexemptionwillnolongerapply.
FICA Exception for F, J, M, and Q Visa holders
An individual can be exempt from FICA tax
withholding if he or she meets all of the
following criteria:
1. A nonresident alien, and
2. Present in the U.S. under F‐1, J‐1, M‐1
or Q‐1 category visa, and
3. Performing services in accordance with
the primary purpose of the visa’s
issuance (i.e., the primary holder of the
visa, the “‐1” Visa
PaymentsMadeThroughAccountsPayableNSHEmustdeterminetheU.S.citizenshipstatusofallpayees.Therefore,thequestionontheIndependentContractorAgreement(ICA)orGuestSpeakers(GS)contractregardingU.S.citizenshipmustbeansweredforallpaymentsmadetoindividualsforindependentpersonalservices.IfthequestionisnotansweredontheIndependentContractorAgreement,thepaymentwillnotbeprocessedandwillbereturnedtotherequestingdepartmentforcompletion.WhenrequestingapaymentthroughAccountsPayable/Disbursements,itistheresponsibilityoftheindividualwhopreparestheIndependentContractorAgreement,PaymentVoucher,PurchaseOrder,orRequestforChecktoensurethatthepayeehasbeenaskedabouthisorherU.S.citizenship/permanentresidencystatus.SuchadeterminationmustbemadebyaskingeachpayeeabouthisorherU.S.citizenship/permanentresidencystatus,regardlessofwhetherthereisreasontobelievethattheindividualmayormaynotbeaU.S.citizen.Ifapaymentismadetoacompany,determinationwhethertheentityisadomesticorforeignentityisneeded.Ifthevendorisdeterminedtobeforeign,contacttheNRATSforguidance.TherearemanytypesofW‐8Formsforcompaniesbasedontheirentityorstructure.Seepaymentsmadetoforeigncompaniesformoredetails.Ifthepayeeisathirdpartybeingpaidonthebehalfofanotherindividual,thequestionregardingU.S.citizenship/permanentresidencystatusappliestothatofthetruebeneficiaryoftheincome,notthecheckpayee.ThisalsoappliestopaymentsmadetoU.S.AgentsofPerformers/Artists/Athletes.Thetruebeneficialowneroftheincomemaybeaforeignpersonorentity.AwardpaymentsareprocessedonPaymentVouchers(PV)throughAccountsPayableDepartment.RecipientswhoarenotU.S.CitizensorPermanentResidentsneedtomeetwiththeNRATStosignformsforprocessing.IftherecipientisnothereintheU.S.,departmentsshouldhavethememailtheNRATSatnrat@unr.eduformoreinformation.IfthestepsarenotfollowedbytheindividualcompletingtheIndependentContractorAgreement,PaymentVoucher,purchaseOrderorrequestforcheck,thepaymentwillnotbeprocessed.Also,ifthenecessaryformsarenotcompletedbythepayeeorthetruebeneficiaryandattachedtotheIndependentContractorAgreement,PaymentVoucher,PurchaseOrder,orRequestforCheck,themaximumrateoftaxwillbewithheldfrompayment.Pleasenotethatsufficienttimeshouldbeallowedforforeignpaymentprocessing.Anyfederaltaxwithheldduetofailuretoprovidetherequiredinformationorformscannot,byIRSregulation,berefundedbyNSHE.
U.S.TaxInformationforNonresidentAlienGuestSpeakers/Consultant/Contractor
TheInternalRevenueService(IRS),theU.S.Governmenttaxingauthority,hasissuedstrictregulationsregardingthetaxationandreportingofpaymentsmadetonon‐UnitedStatescitizens.Asaresult,theNSHEmayberequiredtowithholdU.S.incometaxandfilereportswiththeIRSinconnectionwithpaymentsmadebyNSHEtoconsultantsandguestspeakerswhoarenotU.S.citizensorpermanentresidentaliens(greencardholders)andwhoreceivecompensationforservicesperformedand/orreimbursementfortravel.NSHEmustdeterminewhetheryouwillbetreatedasa“residentalien”or“nonresidentalien”forU.S.taxpurposes.ConsultantsorguestspeakerswhoentertheU.Sunderavisitor’svisa(e.g.,B‐1orB‐2)orawaiverofavisa(e.g.,VWBorVWT)aregenerallytreatedasnonresidentaliensiftheyarepresentintheU.S.foratotaloflessthansixmonthsoverathreeyearperiod.ConsultantsorguestspeakerswhoarepresentintheU.S.underaJ‐1visaareusuallyconsiderednonresidentaliensforthefirsttwocalendaryearsthattheyarepresentintheU.S.NSHEisgenerallyrequiredtowithholdtaxesfromallpaymentsmadetononresidentaliens.SothatNSHEcanmakeacorrectdeterminationabouttaxwithholding,allguestspeakerswhoarenotcitizensorpermanentresidentaliensoftheU.S.mustcompletetheAlienInformationCollectionFormandreturnittotheNRATS.YouwillneedtomeetwithNRATStosignformswhileyouarehereoncampus.Bringyourpassporttoyourappointment.OnceyourU.S.taxstatushasbeendetermined,ifyouareanonresidentalien,ataxequalto30percentisgenerallyrequiredtobewithheld.Taxableitemsinclude,butarenotlimitedto:•Honoraria•Consultingfee•Compensation•Speakerfee•LivingAllowance•CashAwardTheU.S.hasincometaxtreatieswithanumberofforeigncountries.CertaintaxablepaymentsmadebyNSHEtoyoumaybeexemptfromU.S.taxbasedonanincometaxtreatyenteredintobetweentheU.S.andyourcountryofresidency.Theexistenceofataxtreatydoesnotautomaticallyensureanexemptionfromtaxation;rather,youmustsatisfytherequirementsfortheexemptionsetforthinthetaxtreaty.Inordertobeconsideredforataxtreatyexemption,youmusthaveaU.S.SocialSecurityNumberorIndividualTaxIdentificationNumber(ITIN).YoumustmeetwithNRATStosigntheforms.A30percentwithholdingtaxwillbedeductedfromcompensationpaymentsmadetoconsultantsorguestspeakers(i)whoarefromcountriesthatdonotmaintainanincometaxtreatywiththeU.S.,(ii)whosepaymentdoesnotqualifyforexemptionunderataxtreaty,or(iii)whodonothaveaU.S.SocialSecurityNumberorITIN.IftheNRAdoesnotmeetwithNRATS,NSHEcannotrefundthetax.AU.S.incometaxreturnatyear‐endmustbefiledtoapplyforarefundoftaxwithheldfromtheIRS.PleasenotethatNSHEis
alsorequiredbylawtoreporttotheIRSallpaymentsmadetoanonresidentalien,ortoathirdpartyonhisorherbehalf,regardlessofwhetherthepaymentissubjecttoU.S.tax.AllindividualswhoreceivepaymentfromNSHEarealsorequiredbylawtodisclosetheirU.S.SocialSecurityorITIN.AllconsultantsandguestspeakerswhoarenotcitizensorpermanentresidentaliensoftheU.S.arerequiredtomeetwithNRATSandwillcompleteformsduringtheappointmentpriortoreceivinganypaymentsorfinancialassistance.Ifyouneedinformationconcerningtax‐withholdingobligations,pleasecontacttheNonresidentAlienTaxSpecialistbyemailat:[email protected]
ProceduresforForeignNationalNonresidentAlienGuestSpeakers/Consultant/orContractor
IfanhonorariumisbeingpaidandtravelexpensesarebeingreimbursedtooronbehalfofaForeignNational,contacttheNRATSofficetodiscusstheirentrystatustotheU.S.ortheircurrentvisa/immigrationstatusandtoscheduleanappointmentforyourforeigncontractororguestspeaker/consultantwhiletheyarehereoncampus.Theguestspeaker/independentcontractorshouldbringalltheirdocumentation(Passport,Visa,I‐94,completedAlienInformationCollectionForm,W‐8BEN)totheNRATSofficeattheirscheduledappointmenttime.Generally,forNonresidentAliens(notaU.S.CitizenorPermanentResident),30%taxmustbewithheldunlessanIRSincometreatybenefitisavailable.IftheindividualdoesnothaveaU.S.SSN,orIndividualTaxpayerIdentificationNumber(ITIN),theycannottakeadvantageofatreatybenefitthroughthewithholdingagent(UNR).TheymaybeabletotakeatreatybenefitlateriftheyapplyforanITINwhentheyfiletheirU.S.taxreturnthefollowingyear.Independentcontractors(includesguestspeakers)mustprovideaservicetoUNRinordertohavetheirtravelexpensesbeconsiderednontaxableundertheaccountableplanrules.Anindividualattendingaconferencetobenefittheirstudiesisnotconsideredprovidingaservice.Thistypeofpaymentisconsideredatravelgrantandtheaccountableplanrulesdonotapply.Iftheyareaguest(i.e.,notprovidingaservice),thesetravelexpensesareconsideredpersonalexpensesandaretaxablebytheIRS.ItisthesameforU.S.citizens.IndividualsarrivingonaB‐1,B‐2,B‐1/B‐2,VWB,VWTvisamaybepaidasmallhonorariumandreimbursedexpensesaslongastheirdurationoftheiractivityatUNRisnotmorethan9days,andhavenotbeenpaidbymorethan5institutionsintheprevious6months(9‐5‐6rule).IftheindividualisnotarrivingatUNRonaBorVWtypeofvisa,pleaseadviseNRATSinadvance.UNRmaynotbeabletopayorreimbursethisindividualorevenprepayexpensesonbehalfofthisindividualifthepaymentisnotalegalpaymentundertheircurrentimmigrationstatusinaccordancewithUSCIS.
TheDepartmentsResponsibilityThefollowingdocumentationissenttoNRATSforapproval:OriginalICAcontract(withpropersignatures)andexhibitsA/B/Ccompleted.Originaltravelreceipts(ifapplicable)ifyouprepaidtravelexpenses,attachcopiesofthedocumentationtotheICA.YoucanprepaytravelexpenseswithaPV(sendtoA/P)orwithyourUNRP‐Card.IfyoupaidwithyourP‐Card,attachalldocumentationtoyourP‐CardstatementforauditpurposesandreferencetheICAnumber.ATravelItineraryWorksheet(TIW)isnecessaryformultipledays.GuestSpeakers/Consultants(consideredanIndependentContractor)maynotbepaidperdiems.Lodgingandmealsarelimitedindollaramount.SeeAccountsPayableTravelPolicy.
NonresidentAlienTaxSpecialist(NRATS)ResponsibilityThefollowingdocumentationandformsarecollectedandcompletedbytheNRATSonly(notbythedepartment)duringtheirappointment.Notallmayapply:Copyofpassport(s)Copyofvisa(s)orDHSstampsCopyofI‐94(online)withtravelhistoryCopyofotherUSCISimmigrationdocumentsAlienInformationCollectionFormorFNISFormW‐8BENorW‐9Form8233FormincludingCertificationCertificationStatement(9/5/6rule)BankinginformationAfterthedepartmentdocumentationisreceivedandreviewedbytheNRATS,alldocumentationandformscollectedwillbesentbyNRATStoAccountsPayableforprocessing.IRSTaxWithholding:IftheindividualdoesnothaveasocialsecuritynumberorITINnumber,theIRSrequiresthatwewithholdFederalIncomeTaxof30%.IndividualmusthaveaSSNorITINtobeeligibleforatreaty.TheindividualmaystillapplyforanITINnumberandtakeanytreatybenefitsavailablewhentheyfiletheirU.S.incometaxreturn,andmayreceiveallthetaxrefundedtothembytheIRS.Treatyeligibilityisdeterminedbythewithholdingagent(NRATS)andnotbytheindividualordepartment.Thedepartmenthastheoptionofgrossingupthepaymenttocoverthetaxpaymentfortheindividual.Thedepartmentwouldbechargedthegrossamount.Thegross‐upformulais=Netpaymentamountdividedby.70=GrossAmount).Forexampleifyouwanttopaya$1000.00paymentandcoverthetaxfortheindividual,itwouldbe$1,000.00dividedby.70=$1,428.57(Gross=$1,428.57,Tax=428.57,NetPayment=$1,000.00).IRSTaxReporting:TheindividualwillreceiveanIRS1042‐SForminlateFebruaryofthefollowingyear.Thisformwillreportthetaxableamountpaid,taxwithheld,andotherreportinginformation.ThisinformationisreportedtotheIRS.TheindividualwillneedthisformtocompletetheirNonresidentU.S.TaxReturn.UNRprovidesourinternationalcommunitywithfreeNonresidentU.S.TaxFilingsoftwareGlaciertocompletetheir1040NRtaxreturn.TheycanobtainsoftwareinstructionsandaccessbycontactingtheOISSoffice.Additionalinformationandlinks:I‐94andtravelhistory:https://i94.cbp.dhs.gov/VisaWaiverProgram(VWP):https://travel.state.gov/content/visas/en/visit/visa‐waiver‐program.html
PaymentstoForeignCorporations/EntitiesGeneralInformation:Whenmakingpaymentstoforeigncorporations,thefactsandcircumstancesneedtobeanalyzedtodeterminetheappropriatewithholdingcertificatetorequest,andwhichwithholdingratesorexemptionstoapply.Thesourceofincomemustbedetermined,whetherornotitiseffectivelyconnectedwiththeconductofaU.S.tradeorbusiness,whetherornotthecorporationisactuallyapersonalholdingcompany,andwhetherornotataxtreatyapplies.Inordertoarriveatthecorrectconclusions,itisimperativethatyoucorrectlyclassifytheincomeandidentifythetruebeneficialowneroftheincome.Forpaymentofforeigngoodsonly,IRSsection1441doesnotapply,andthereisnotaxwithholdingorreporting.Forservicesperformedabroad(foreign‐sourcedincome),IRSsection1441doesnotapply,andthereisnotaxwithholdingorreport.Exception–U.S.citizensperformingservicesabroad.U.S.citizensaretaxedontheirworldwideincome.Paymentsforsoftwareorcopyrightuse(unlessUNRownsexclusiverights)areconsideredaroyalty.Royaltyincomeistaxedwhereitisused(U.S.)andissubjectto30%taxwithholdingunlessavalidW‐8formisreceivedandataxtreatyapplies.Payments,someofwhichareforeignsourcedandsomeofwhichareU.S.sourced,makesitimportantthatthepayeeidentifythepaymentbysourceonaninvoice.Iftheydonotidentifythepaymentbysource,anditisknownthatsomeofthepaymentisU.S.source,taxmustbewithheldonallofthepayment(s).SpecialtaxandreportingissuesoccurwhenmakingpaymentstoaU.S.AgentonbehalfofaForeignPerson(Entity).ThesesituationsarisewithPerformers/Artists/Athletes.ThebeneficialowneroftheincomeistheForeignPersonnottheagent.Thepaymentissubjectto30%taxwithholdingandreporting.
TypesofW‐8FormsforForeignCompaniesW‐8ECIForm://www.irs.gov/pub/irs‐pdf/fw8eci.pdfIfallavailableevidenceindicatesthattheforeignentityisafor‐profit,taxableentityunderthatforeigncountry’slaw,thenwithholdingof30%underIRC1441(a)isnecessary,unlesstheentityhasafixedbaseorpermanentestablishmentintheUSA.IftheentityhasafixedbaseorpermanentestablishmentintheUSA,thentheentitycanavoidthe30%withholdingunderIRC1441(a)byfilingformW‐8ECIwithyourinstitution.TheFormW‐8ECImustincludeaU.S.EIN.Itistheforeigncorporation’sresponsibilitytomakeestimatedtaxpaymentsandtocompleteaU.S.incometaxreturn(1120F).UnderTreas.Reg.1‐1441‐4(a)(1),aforeigncorporationmaydeliveraformW‐8ECItoaU.S.withholdingagenttoavoidthe30%withholdingonlyiftheforeigncorporationhas"incomewhichiseffectivelyconnectedwithaU.S.tradeorbusiness"(calledECIforshort—EffectivelyConnectedIncome).Undersection864(b)oftheInternalRevenueCodepaymentfortheperformanceofpersonalservicesintheUnitedStatesconstitutesECIbydefinition.OrECImaybeestablishediftheforeigncorporationhassomesortofpermanentoffice,fixedbase,orpermanentestablishmentin
theUSAfromwhichitsU.S.salesarederived.AforeigncorporationthathasECIisrequiredtofileaU.S.incometaxreturn(form1120F)onwhichitshouldreporttheincomeandexpensesrelatedtoitsECIintheUnitedStates.AforeigncorporationwhichhasnoECIintheUnitedStatesandwhichisnotfilingaU.S.incometaxreturnisnotallowedtofileformW‐8ECIwithaU.S.withholdingagent.Treas.Reg.1‐1441‐4(a)(1)addsthestipulation,however,thataforeigncorporationmaynotuseformW‐8ECItoavoidthe30%withholdingifthefollowingthreeconditionsapply:
(1)theforeigncorporationqualifiesasapersonalholdingcompany(i.e.,atleast60%ofitsgrossincomearisesfromtheperformanceofpersonalservicesbyindividualsandatleast50%ofthestockofthecorporationisownedbynotmorethan5individuals);
(2)Theindividualsperformingthepersonalservices(andnotthecorporation)havetherighttodeterminewhowillperformthepersonalservices;and
(3)25%ormoreofthestockofthecorporationisownedbytheindividual(s)whoarecontractedtoperformthepersonalservicecontractsmadebythecorporation.
W‐8EXPFormhttps://www.irs.gov/pub/irs‐pdf/fw8exp.pdfAFormW‐8EXPisusedbyaforeigntax‐exemptorganizationtoclaimthattheyarethebeneficialowneroftheincomeandtoclaimareducedrateorexemptionfromtaxunderIRC1441(a).TheformappliestoamountsexemptfromwithholdingunderSections115(2),501(c),892or895,oramountssubjecttoreducedwithholdingunderSection1443(b).Inordertoclaimareducedrateorexemptionfromtax,theFormW‐8EXPmustincludeanEIN.IfyoumakethepaymentbasedonreceivingaW‐8EXPwithnoU.S.EIN,youmustwithhold30percent.IftheylaterprovideyouwithaFormW‐8EXPthatincludesanEIN,youcanrefundthe30percentwithheldaslongasitiswithinthetimeframeprovidedforrefunds.(SeeIRSPublication515forinstructionsonrefundsandreimbursements).TheforeignentitywouldhavetoattachtoformW‐8EXPaletterfromaU.S.attorneyindicatingthatiftheorganizationhadbeenorganizedunderthelawsoftheUnitedStatestheorganizationwouldhavebeengrantedtax‐exemptstatusunderIRC501(c).W‐8BEN‐EFormhttps://www.irs.gov/pub/irs‐pdf/fw8bene.pdfTheW‐8BEN‐Eistheappropriateformiftheforeigncorporationiscertifyingitsforeignstatus,isthebeneficialowneroftheincome,andisreceivingcertaintypesofnon‐compensatoryincome,whichiseithernoteffectivelyconnectedtoaU.S.tradeorbusiness,oriseffectivelyconnectedbutexemptfromwithholdingunderthetermsofataxtreaty.AforeigncorporationthatclaimsatreatybenefitoneffectivelyconnectedincomemustsubmitaForm1120Ftaxreturngivingthefactssupportingtheclaim.TheW‐8‐BEN‐EmustincludeaU.S.EINoraForeignTINtobeeligiblefortreatybenefits.W‐8BENFROMhttps://www.irs.gov/pub/irs‐pdf/fw8ben.pdfTheW‐8BENistheappropriateformforindividualstosignwhencertifyingthattheyareanonresidentalienintheU.S.fortaxpurposes.
1042‐SReportingRequirementsforForeignCorporations(U.S.SourcedIncome)U.S.sourcepaymentsarestillsubjecttoreportingonForm1042‐S.AccordingtothenewSection1461regulations,U.S.sourceincomesubjecttoreportingonForm1042‐Sincludesamountssubjecttowithholdingundersection1441evenifnoamountisdeductedandwithheldfromthepaymentbecauseofanexemptionunderanInternalRevenueCodeoranincometaxtreatyprovision.Therefore,iftheincomewouldhavebeensubjectto30percentwithholding,wemustreporttheincomeonaForm1042‐Swithanexemptcode2foraCodeExemptionor4foranincometaxtreatyexemption.Therefore,inorderfortheforeigncompanytoavoidhavingalloftheincomepaidtothemreportedonaForm1042‐S,theyneedtoinvoiceforU.S.sourceincomeseparatelyfromforeignsourceincomesothatyoucanreporttheU.S.sourceincomeaccuratelytotheIRS.Iftheydonot,wewillhavetoreportincomethatwedonotknowtobeforeignsourceandletthemsortitoutontheirForm1120‐Ftaxreturnswhentheyprovidethefactsandcircumstancessupportingthetreatyexemption.Summary:IfitisknownthepaymentsarebeingmadetoaforeignentityfromU.S.sourceincome,i.e.servicesperformedintheU.S.orpaymentstoaU.S.agent(forForeignPersons),30%mustbewithheldonthepaymentunlessthecompanypresentsanoriginalsignedFormW‐8BEN‐E,withPartIIIcompleted,claimingnoU.S.permanentestablishmentunderanapplicabletreaty,oraFormW‐8EXPaccompaniedbyaletterfromaU.S.attorneystatingthatthecompanywouldbeatax‐exemptentityundersection501(c),oraW‐8ECIformforcompaniesthathaveafixedbaseorpermanentestablishmentintheUSA.FormswouldhavetoincludeaU.S.EIN.ForeignentitiesmayusetheirForeignTINfortreatybenefitsontheW‐8BEN‐Eform.Ifthereisnotenoughinformationtodecidewhichformswouldapplytothesituation,thenignorethecorporation'sformW‐8BEN‐Eclaimingatreatybenefit,orW‐8ECI,orW‐8EXPform,andwithhold30%federalincometaxonthepayment(s)tothecorporation.ThecorporationmaythenfileaU.S.incometaxreturn(form1120F)withtheIRSinordertoclarifythecorporation'staxstatusintheUSAandtoclaimwhicheverdeductions,credits,ortreatyexemptionsitbelievesaccruetoit.ThisrelievesNSHE,thewithholdingagent,oftheresponsibilityoftryingtounderstandthecomplextaxlawswhichrelatetothetaxationofthepayment(s)youaremakingtotheforeigncorporation.IfotherinstitutionsintheUSAhaveacceptedaformW‐9fromtheforeigncorporationandnotwithheldU.S.federalincometaxfromthepayment(s)totheforeigncorporation,thensuchotherinstitutionshavealmostcertainlymadepayment(s)toaforeignentitywithoutsecuringproperdocumentationandwithholdingcertificatesandareprobablyliableforthe30%withholdingtaxonthepaymentsincaseofanIRSaudit.RelatedLinksandForms:U.S.EIN(EmployerIdentificationNumber)information:https://www.irs.gov/Individuals/International‐Taxpayers/Taxpayer‐Identification‐Numbers‐TIN#einWithholdingAgentFAQ:https://www.irs.gov/Businesses/International‐Businesses/U.S.‐Withholding‐Agent‐Frequently‐Asked‐Question
U.S.TaxInformationforNonresidentAlienStudentsTheInternalRevenueService(IRS),theU.S.Governmenttaxingauthority,hasissuedstrictregulationsregardingthetaxationandreportingofpaymentsmadetonon‐UnitedStatescitizens.Asaresult,NSHEmayberequiredtowithholdU.S.incometaxandfilereportswiththeIRSinconnectionwithpaymentsmadebyNSHEtostudentswhoarenotU.S.citizensorpermanentresidentaliens(greencardholders)andwhoreceivefinancialaid,scholarships,fellowships,awards,orcompensationforservicesperformed.NSHEmustdeterminewhetherthestudentwillbetreatedasa“residentalien”or“nonresidentalien”forU.S.taxpurposes.ThesubstantialpresencetestisusedtocalculatethenumberofdaysthatastudentispresentintheU.S.anddeterminewhethertheindividualisanonresidentalienorresidentalienforpurposesofcalculatingU.S.taxwithholding.StudentspresentintheU.S.onF‐1orJ‐1visasareusuallyconsideredtobenonresidentaliensforthefirstfivecalendaryearsthattheyarepresentintheU.S.;NSHEisgenerallyrequiredtowithholdtaxesfromallpaymentsmadetononresidentaliens.InorderforNSHEtomakethisdetermination,youmustcompletetheAlienInformationCollectionFormandsubmitittotheNRATSduringyourappointment.TheNSHEisalsorequiredbylawtoreporttotheIRSallpaymentsmadetoanonresidentalien,ortoathirdpartyonhisorherbehalf,regardlessofwhetherthepaymentissubjecttoU.S.tax.Nontaxableitemsconsistofthefollowing:•Tuition•Bookallowance•Requiredregistrationfees•MandatoryhealthinsurancefeesTaxableitemsinclude,butarenotlimitedto,thefollowing:•Roomandboard•Fellowshipstipend(whichdoesnotrequireaservicetobeperformed)•Livingallowance•Cashaward•Travelpayment/reimbursement•Compensation(includingafellowshipstipendthatdoesrequireaservicetobeperformed)TheU.S.hasincometaxtreatieswithanumberofforeigncountries.CertaintaxablepaymentsmadebyNSHEmaybeexemptfromU.S.taxbasedonanincometaxtreatyenteredintobetweentheU.S.andthecountryofresidency.Theexistenceofataxtreatydoesnotautomaticallyensureanexemptionfromtaxation;rathertherequirementsfortheexemptionsetforthinthetaxtreatymustbesatisfied.Inordertobeconsideredforataxtreatyexemption,FormW‐8BEN(forallscholarship,fellowship,orstipendpayments)orForm8233(forallcompensationpayments)mustbecompletedwithNRATS.A14percentwithholdingtaxwillbedeductedfromscholarship,fellowship,stipendpayments,andhousinglivingallowancesmadetostudentspresentintheU.S.underanF‐1orJ‐1visa(i)whoarefromcountriesthatdonotmaintainanincometaxtreatywiththeU.S.,(ii)whosepaymentdoesnotqualifyforexemptionunderataxtreaty,or(iii)whodonothaveaU.S.SocialSecurityNumberorITIN.
Certainportionsofascholarshiporfellowshipgrant(forexample,tuitionandrequiredfees)willnotbepaiddirectlytothestudent,butwillbecreditedtotheirstudentaccountatNSHE.Iftheportioncreditedtotheiraccountisanontaxableitem(forexampletuition)therewillbenotax.However,ifthecreditedportionisataxableitem(forexample,roomandboard)thereisarequirementtopayNSHEtheamountofthetaxthatisrequiredtobewithheld,generally,14percent.NCAASpecialAssistanceFundpaymentsaretaxedat30%asthesearepaymentsnotrelatedtostudies.CompensationpaymentsmadetoanonresidentalienforservicesperformedasaNSHEemployeearepaidthroughthePayrollsystem.U.S.taxiswithheldonthistypeofpaymentataspecificgraduatedtax‐withholdingrate.Withrespecttocompensationpaidtoanonresidentalienaspartofafellowshipgrant,incometaxtreatiesmayormaynotapplytoexemptsomeorallcompensation,andanytaxwithholdingassociatedwiththetaxablecompensationwillbeautomaticallydeductedfromthepayments.StudentswhoplantoworkoncampusmustapplyforasocialsecuritynumberfromtheU.S.SocialSecurityAdministrationpriortobeginningwork
PaymentsCreditedToaStudent’sAccountAllpaymentscreditedtoastudent'saccountwillbereviewedbyNSHE’sNRATSforpossibletaxwithholdingandreportingliability.Thedepartmentgrantingthescholarshiporfellowshipisnotrequiredtocompleteanyadditionalforms.Allscholarshipandfellowshippaymentsmadetoanonresidentalienstudentthroughthestudent'saccountmustbereportedtotheIRS;however,onlyaportion(ifany)ofthepaymentmaybesubjecttoU.S.tax.Amountswhicharerestrictedtothepaymentof(i)tuitionandfeesrequiredforenrollment,and(ii)fees,books,supplies,andequipmentrequiredforcoursesofinstructionarenotsubjecttoU.S.taxationforanystudent,regardlessofwhetherthestudentisaU.S.citizen,residentalienornonresidentalien.AmountsthatdonotqualifyunderthesetwocategoriesaresubjecttoU.S.taxation.WhiletheIRSdoesnotrequireNSHEtowithholdtaxontaxablescholarship/fellowshippaymentsmadetoU.S.citizensandpermanentresidents,taxmustbewithheldonsuchpaymentsmadetononresidentaliens.Therefore,whenawardingascholarshiporfellowshiptoanonresidentalienstudentbycreditingthestudent'saccount,itistheresponsibilityoftheawardingdepartmenttonotifythestudentofapossibletaxliabilityassociatedwiththepaymentpriortohisorherarrivalintheU.S.The"U.S.TaxInformationforNonresidentAlienStudents"lettershouldbeprovidedtothestudentatthetimethescholarshiporfellowshipisgranted.TheNRATSwillobtaininformationfromtheStudentInformationSystemtoidentifypotentialnonresidentalienstudentsreceivingscholarshiporfellowshippaymentsandwillcalculateanyapplicabletax.TheNonresidentAlienscholarshiptaxreportisruneachweekbysemesterandtaxchargesarepostedtothestudent’saccount.Ifthestudent’scitizenshipismissingorcontainserrorsordiscrepancies,thestudentwillneedtoprovidetheirdocumentationtotheStudentAccountsOffice.Oncedocumentationisreceived,thestudent’scitizenshipinformationwillbeupdatedintheStudentInformationSystem,andthetaxchargeswillbeadjustedifapplicable.StudentswhoreceivefellowshipsforwhichnoservicesarerequiredandpaidthroughtheaccountspayablesystemshouldfollowthedirectionsdiscussedunderPaymentsMadethroughAccountsPayable.
IncomeTaxTreaties
Anindividualmaybeeligibletoclaimanexemptionfromtaxwithholdingifheorshequalifiesforanincometaxtreatyexemption.AnincometaxtreatyisanagreementbetweentheU.S.andaforeigncountrythatisintendedtoalleviatedoubletaxation.Incometaxtreatiescontainvariousprovisionsdesignedtopromotecross‐culturaleducationandexchangebyallowingstudents,teachers,andresearchersofonecountrytoperformcertainrelatedactivitiesintheothercountryandreceiveanexemptionfromtax.Thesetaxtreatyexemptionsareusuallyonlyvalidforalimitedtimeperiodand/orforaspecifieddollaramount.Anindividualmustmeetthequalificationsofaparticulartaxtreatyinordertoclaimanexemptionandmustcompleteaformrequestingtheexemption.TheNRATSwilldeterminewhethertheindividualqualifiesforataxtreatyexemption.FailuretocollectallnecessaryinformationmayresultinNSHEincorrectlydeductingtaxfrompaymentsotherwiseexemptorexcludedfromtaxation.
HowWillanIncomeTaxTreatyBenefitanIndividual?Incometaxtreatiescontainarticleswhichaddresscertaincategoriesofincomeanddifferenttypesofindividuals;typically,taxtreatiescontainarticleswhichrelatetostudents,trainees,teachers,researchers,aswellasarticlesthatapplytoindividualsreceivingincomeintheU.S.asemployees,independentcontractorsandhonorariumrecipients.Ifanindividualqualifiesforataxtreatyexemption,theexemptioncanbeclaimedatthetimeofpaymentbyaskingtheemployerorpayernottowithholdtaxesfromthepaymentandcompletingallrequiredforms.Inaddition,theexemptioncanbeclaimedbytheindividualwhenheorshefilesaU.S.incometaxreturninsteadofwithNSHEatthetimeofpayment.Pleasenotethatfailurebytheindividualtorequestataxwithholdingexemptionwillnotaffecttheindividual'sabilitytolaterclaimataxtreatyexemptionwhencompletinghisorherU.S.incometaxreturn.
IncomefromPersonalServicesSometaxtreatiescontainalimitedexemptionforpersonalservicesincomeearnedbystudentsandtraineeswhileintheU.S.,butthereistypicallyanannualmaximumdollaramountand/oratimelimitofpresenceintheU.S.forwhichtheexemptioncanbeclaimed.Example:Article21oftheU.S.‐Franceincometaxtreatyallowsanexemptionof$5,000percalendaryearforpersonalservicesincomeearnedbyastudentforaperiodoffivecalendaryearsfromthedateofthestudent'sarrivalintheU.S.Example:Article19oftheU.S.‐Chinaincometaxtreatyallowsanunlimitedexemptionfromtaxoncompensationpaidtoteachersandresearchersforaperiodofthreeyears.ScholarshipandFellowshipGrants/Stipends(NoServicesRequired)
ManyU.S.taxtreatiescontaina"Student"articlethatexemptsscholarshipandfellowshipgrantsorstipendsreceivedbyanindividualwhoisintheU.S.(i)studyingataU.S.educationalinstitution,(ii)trainingtopursueaprofessionalspecialty,or(iii)studyingordoingresearchunderagrantfromagovernmental,charitableoreducationalorganization.
U.S.IncomeTaxTreatiesCurrentlyinForceEachincometaxtreatyisuniqueandmaynotcontainthesameexemptionprovisionsasanothertreaty.ThemereexistenceofanincometaxtreatybetweentheU.S.andtheindividual'shomecountrydoesnotmeanthatanindividualwillautomaticallybeexemptfromtaxwithholding;theindividualmustmeetallofthequalificationsassetforthinthetreatyandmustcompleteandsubmitallrequiredtaxtreatyexemptionforms.TheNRATSwillmakethedeterminationwhetheranindividualorentityqualifiesforatreatyexemptionforwithholdingpurposes.TheU.S.currentlymaintainsincometaxtreatieswithmanycountries.SeeIRSPublication901formoreinformation.ArmeniaAustraliaAustriaAzerbaijanBangladeshBarbadosBelgiumBelarusBulgariaCanadaChina(People’sRepublic)CyprusCzechRepublicDenmarkEgyptEstoniaFinlandFranceGeorgiaGermanyGreeceHungaryIceland
IndiaIndonesiaIrelandIsraelItalyJamaicaJapanKazakhstanKoreaKyrgyzstanLatviaLithuaniaLuxembourgMaltaMexicoMoldovaMoroccoNetherlandsNewZealandNorwayPakistanPhilippinesPoland
PortugalRomaniaRussiaSlovakRepublicSlovenia SriLankaSouthAfricaSpainSwedenSwitzerlandTajikistanThailandTrinidadTunisiaTurkeyTurkmenistanUkraineUnionofSovietSocialistRepublics(USSR)UnitedKingdomUzbekistanVenezuela
FormsRequiredForExemptionunderanIncomeTaxTreatyIfanindividualqualifiesforataxtreatyexemption,NSHEmayexempttheindividualfromU.S.taxwithholding,butonlyiftheindividual(i)completeseitherFormW‐8BENorForm8233/Certificationand(ii)hasaU.S.‐issuedsocialsecurityorindividualtaxpayeridentificationnumber.TheseformsarepreparedintheNRATSoffice.NSHEisrequiredtocalculateanddeductthetaxeventhoughtheindividualmayotherwisequalifyforthetaxtreatyexemption.Theformusedtoclaimthetaxwithholdingexemptionisdeterminedbythetypeofincomereceived;individualswhoreceiveseveraltypesofincomemayberequiredtofiledifferentforms.FormW‐8BEN(CertificateofForeignStatusofBeneficialOwnerforU.S.TaxWithholding)FormW‐8BENisusedtoclaimataxtreatyexemptionforroyalties,scholarships,fellowships,grantsandstipendsthatdonotrequiretheperformanceofaservice.UnlikeForm8233,whichisvalidforonlyoneyear,FormW‐8BENisvalidforaperiodofthreecalendaryearsiftheindividualprovideshisorhersocialsecuritynumberorITIN.IfnosocialsecuritynumberorITINisprovided,theformisvalidforonecalendaryear.NSHEisrequiredtocollectFormW‐8BENpriortomakingthefirstpaymenttotheindividualforwhomheorsheisclaimingataxtreatyexemption.Form8233(ExemptionfromWithholdingonCompensationforIndependent(andCertainDependent)PersonalServicesofaNonresidentAlienIndividual)Form8233isusedtoclaimataxtreaty‐basedexemptionfromfederaltaxwithholdingonincomereceivedforpersonalservices(i.e.,wages,salary,consultantfees,orhonoraria).Form8233mustbefiledbyallindividualswhowishtoclaimataxtreatyexemptionforservicesperformed.Form8233isvalidonlyforthecalendaryearinwhichitisfiled;theformmustbere‐filedforeachyearthattheexemptionisclaimed.Theexemptionfromwithholdingbecomeseffectiveforpaymentsmadetoanindividual10daysafterthedateonwhichtheNRATSfiletheForm8233withtheIRS.
SocialSecurityAndIndividualTaxpayerIdentificationNumber(ITINS)Allindividualsarerequiredtohaveasocialsecurityorindividualtaxpayeridentificationnumber.IftheindividualiseligibletoworkintheU.S.,heorshemustobtainaU.S.socialsecuritynumber.NSHEmakespaymentstoindividualswhoareineligibletoobtainasocialsecuritynumber,butwho,nonetheless,mustobtainanidentifyingnumber,generallyforthepurposesofreportingpaymentsandfilingU.S.taxreturns.Suchindividualsinclude,butarenotlimitedto,nonresidentaliensandresidentalienswhoarenotauthorizedtoworkintheU.S.,butwhoreceivepaymentsfromNSHE(e.g.,fellows,athleteswhoreceivegrantsandstipends,royaltyrecipients,awardrecipients,consultantsandguestspeakerswhoreceivehonorariums).Individualswhoareunabletoobtainasocialsecuritynumbermustapplyforanindividualtaxpayeridentificationnumber(“ITIN”).ToapplyforanITIN,theindividualmustcompleteandsubmitFormW‐7withtheirannualU.S.taxreturn.NonresidentAlienswillcompletea1040NRtaxreturn.INCOMETAXTREATYEXEMPTIONsWILLNOTBEALLOWEDTOANINDIVIDUALWHOFAILSTOPROVIDEAVALIDSOCIALSECURITYNUMBERORITIN.FormW‐7(ApplicationforIRSIndividualTaxpayerIdentificationNumber)FormW‐7maybesubmittedtomostIRSofficesandcertainU.S.consularofficesabroad.AnindividualmayalsocompleteaW‐7forminpersonwithNRATS.TheW‐7form,requireddocumentation,andtaxreturncanbesubmittedasapackettotheIRS.EachnonresidentalienindividualapplyingforanITINmustprovidedocumentationthatevidencestheindividual’salienstatusandidentity.Alistofacceptabledocumentssupportingtheindividual’sstatusandidentityisdeterminedbytheNRATSanddetailedintheIRSW‐7instructions.W‐7Formhttps://www.irs.gov/pub/irs‐pdf/fw7.pdfW‐7FormInstructionshttps://www.irs.gov/pub/irs‐pdf/iw7.pdfAcceptableDocumentsandAppropriateCodesforFormW‐7CODE TYPEOFDOCUMENTATION01 Passport02 NationalIdentityCard(mustcontainname,photograph,address,dateof
birth,andexpirationdate)16 Driver’sLicense(U.S.)17 CivilBirthCertificate20 MedicalRecords(DependentsOnly)21 Driver’sLicense(Foreign)22 StateIdentificationCard(U.S.)23 Voter'sRegistrationCard(Foreign)24 MilitaryIdentificationCard(U.S.)25 MilitaryRegistrationCard(Foreign)27 SchoolRecords(dependentsand/orstudentsonly)32 Visa(issuedbyUnitedStatesCitizenshipandImmigrationServices(USCIS)33 UnitedStatesCitizenshipandImmigrationServices(USCIS)photo
Identification
CalendarYear:ForU.S.taxpurposes,apersonisconsideredtobeintheU.S.fora"calendaryear"ifheorsheispresentduringoneormoredaysbetweentheperiodsfromJanuary1‐December31.Forexample,ifanindividualispresentintheU.S.fromDecember15‐31,heorsheispresentintheU.S.foronecalendaryear,eventhoughheorsheishereforonly17days.FormI‐94:AFormI‐94istheDHSArrival/Departurerecord.TheI‐94andtravelhistoryisavailableonlineathttps://i94.cbp.dhs.govDHSborderofficialswillalsostampthepassportwiththeU.S.entrydateandthedatewhentheindividual'spermissiontostayintheU.S.expires.NonresidentAlien:TheU.S.taxresidencystatusofanon‐U.S.citizenwhoistemporarilypresentintheU.S.NonresidentaliensarerequiredtopaytaxesonlyontheirincomefromU.S.sources.OriginalDateofEntrytotheU.S.:AnindividualmayenterorleavetheU.S.severaltimesduringtheperiodofhisorherU.S.visit(forvacation,holidays,etc.)TheoriginaldateofentryintheU.S.isthefirstdatethatheorshearrivedintheU.S.beforebeginninghisorherstudy,research,consulting,etc.PermanentResidentAlien:AnindividualgrantedlawfulU.S.permanentresidencestatus.Permanentresidentaliens(oftenreferredtoas"green‐cardholders")aretaxedinthesamemannerasU.S.citizens.ResidentAlien:TheU.S.taxresidencystatusofanindividualwhohasbeenpresentintheU.S.foraperiodoftimelongenoughtomeetthesubstantialpresencetest(definedbelow).ResidentaliensaretaxedontheirworldwideincomeandinthesamemannerasU.S.citizens.SubstantialPresenceTest:Atestusedtodetermineanindividual'sU.S.residencystatusfortaxpurposes.ItinvolvesacalculationofthenumberofdaysthatanindividualhasbeenpresentintheU.S.overaperiodofthreecalendaryears.TheSPTwilllookbackasfarastheyear1985forcertainvisacategoriestodeterminepossibleexemptyearsused.TaxTreaty:TheU.S.maintainsincometaxtreatiesoragreementswithcountriesinanefforttoreduceoreliminatedoubletaxation.U.S.ResidencyStatusforTaxPurposes:U.S.taxisimposedbaseduponanindividual'sU.S.residencystatusfortaxpurposes;thisstatusisnotassociatedwiththeindividual'simmigrationorvisastatus.Anon‐U.S.citizen'sresidencystatusiseitheraresidentalienornonresidentalien.AresidentalienistaxedonworldwideincomeinthesamemannerasaU.S.citizen;anonresidentalienistaxedonlyonincomefromU.S.sources.VisaStatus:"Visastatus"referstothecategoryofvisathatanon‐U.S.citizenholds.The"visastatus"ismarkedonvisastamporstickerintheindividual'spassport.Formoreinformationregardingtheappropriatevisastatusneededforaparticularindividual,seethevisachartonthefollowingpage.
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A‐1,A‐2:............Diplomatsandforeigngovernmentofficialsandtheirdependents.Somedependentsaregrantedworkauthorization.
B‐1:......................Businessvisitors.Noworkauthorization,eligibletoreceiveonlyreimbursementfortravelexpensesandPerDiem.Maynotreceiveconsultingfees;however,mayreceiveanacademichonorarium.
B‐2:......................Visitorsforpleasure.Noworkauthorization,eligibletoreceiveonlyreimbursementfortravelexpensesandPerDiem.Maynotreceiveconsultingfees;however,mayreceiveanacademichonorarium.
C‐1:......................Transitvisa.NoworkauthorizationD‐1:......................Foreigncrewmen.Workauthorizedforsponsoringemployer.E‐1:.......................Treatytrader.Workauthorizedforsponsoringemployer.E‐2:.......................Treatyinvestor.Workauthorizedforsponsoringemployer.F‐1:.......................Students.Workauthorizedforhostinstitutionunderverylimited
conditions.F‐2:.......................Spouseanddependentsofstudents.Noworkauthorization.G‐1,G‐2:.............Employeesofinternationalorganizations.SomeG‐3,G‐4:.............dependentsaregrantedworkauthorization.H‐1B:...................Professionals.Workauthorizedforsponsoringemployer.H‐2A:...................TemporaryAgriculturalWorkers.Workauthorizedforsponsoring
employerH‐2B:...................Temporaryworkers.Workauthorizedforsponsoringemployer.H‐3:......................Trainee.Workauthorizedforsponsoringemployer.H‐4:......................DependentsofHvisaholders.Noworkauthorization.I‐1:........................ForeignJournalists.Workauthorizedforsponsoringemployer.
Dependentsarenotworkauthorized.J‐1:........................ExchangeVisitorsincludingstudents,scholars,teachersandresearchers.
Workauthorizedundercertainconditions.J‐2:........................Spouseanddependents.Workauthorizedundercertainconditions.K‐1:.....................FiancéeofU.S.citizen.Workauthorized.L‐1,A,B:.............Intra‐companyexecutive,managerial,orspecialized‐knowledgetransferee.
Workauthorizedforsponsoringemployer.L‐2:.......................Dependents.Noworkauthorization.M‐1:.....................Vocationalstudent.Workauthorizedundercertainconditions.M‐2:.....................Dependents.Noworkauthorization.O‐1:......................IndividualofExtraordinaryAbilityinthesciences,education,business,
athleticsorthearts.Workauthorizedforsponsoringemployer.O‐2:......................Accompanyingworkers.Workauthorizedforsponsoringemployer.O‐3:......................Dependents.Noworkauthorization.P‐1:.......................Internationallyknownathletesandentertainmentgroups.Work
authorizedforsponsoringemployer.P‐2:.......................Performingartistsunderareciprocalexchangeprogram.Workauthorized
forsponsoringemployer.P‐3:.......................Culturallyuniqueentertainers.Workauthorized.P‐4:.......................Dependents.Noworkauthorization.Q‐1:......................InternationalCulturalExchange.WorkauthorizedforsponsoringR‐1:......................ReligiousWorkers.Workauthorizedforsponsoringemployer.TN........................."TradeNAFTA"(Canadiansonly)Supersedes"TC"designation.Work
authorizedforspecifiedemployeronly.
VISACLASSIFICATIONS
VWB:..................Waiverofvisaforbusiness.Noworkauthorization.EligibletoreceiveonlyreimbursementfortravelexpensesandPerDiem;however,mayinsomelimitedcasesreceiveanacademichonorarium.
VWT:...................Waiverofvisafortourism.Noworkauthorization.Eligibletoreceiveonlyreimbursementfortravelexpensesandperdiem;however,mayinsomelimitedcasesreceiveanacademichonorarium.
Nonresident Alien Taxation Foreign National Information Form
How to Complete the FNIS Questionnaire
The Foreign National Information Form is available through the Windstar Foreign National Information
System (FNIS).
Contact the Nonresident Alien Tax Specialist at [email protected] for your user ID and password along with
instructions for accessing the form. Make sure to include the following information:
1. Last Name
2. First Name
3. Date of Birth
4. E‐mail Address
5. Type of employment, i.e., academic faculty, administrative faculty, research scholar, guest
lecturer, graduate assistant, student worker, etc.
You will receive a notification by e‐mail to the address you provided with the NRAT Specialist. Please
check your e‐mail and follow the instructions.
The instruction will include your login ID and password. However, you will be asked to create a new
password after you log on to the system for the very first time. If you have forgotten your password,
contact your NRAT specialist.
If you have already received your user ID and password, you can access the Foreign National Information
Form at https://fnis.windstar.cc/unr/.
===============================================================
Welcome to the beginning steps of the nonresident alien taxation process for the International Students
and Scholars of UNR. We are providing some instructions to assist you with the process.
Complete the on‐line Foreign National Information Form (FNIS) using the username and password
assigned to you. If you do not have a FNIS account, please contact the Nonresident Alien Tax (NRAT)
Specialist at [email protected].
When you are working on the form, below are points to keep in mind.
1. When you log on to the Windstar FNIS website, you will be asked to complete a series of
questions. Complete the questions as best as you can and in as much detail as possible.
(1) If you need addition information on the questions themselves, click on the icons by each question field.
(2) General help is available by clicking on the icon located at the top right corner of the screen.
(3) You can always “save with errors” if you provided as much detail as possible. Also, you can come back to work on it later.
(4) If you need additional help, e‐mail to your NRAT specialist with any questions.
You may leave fields blank if you cannot provide the information. At the bottom of each section is a
button to save and continue and save with errors.
Step 1: Full name, Social Security Number, if you don’t have one have you applied for one? Payroll system
and student system numbers can be filled in later. Indicate your Occupation at Institution. For
example, Academic Faculty, Administrative Faculty, Staff, Research Scholar, Guest Speaker,
Graduate Research Assistant, Graduate Teaching Assistant, Student Worker, Student Athlete, etc.
Department at Institution is the department you will be working for. Note that it is NOT the
department that you are registered under as a student.
If you do not have a foreign tax payer ID number, you may leave this field blank.
Step 2: Individual Information: birth date, marital status, dependents, Telephone number, Email address,
Date first ever entered USA
Step 3: Address Information: Local address and Foreign Residence Address
Step 4: Additional Information: Country of passport/citizenship, passport number, passport expiration
date, other information
Step 5: Visa immigration activity within the past three calendar years. F, J, M or Q immigration activity
since January 1, 1985. Visa immigration activity since January 1, 1985 for which you received
treaty benefits. The visa history section is the most important part of the form since this
information is used to determine your tax status. Be sure to include ALL visits to the US in F, J, Q
or M status since 1985 and ALL visits to the U.S. in any other immigration status within the
current and last two years. If this portion of the form is not complete, the form will be rejected.
When you reach the end of the session in Section 6, be sure to select the box next to the
statement: “The information I have entered is correct and I wish to submit it to my host site.” This is
located at the lower portion of the confirmation section. Then you may click the FINISH button.
The next screen will ask you to click next to the statement: “…to create an email notifying your
administrator at Missouri State University that you have just submitted your Foreign National
Information Form. Sending this email will ensure that your information is seen and checked for
completeness by your administrator.”
If you do not click here, the International Payroll Specialist will not be notified that you have completed
the form. After you have sent your e‐mail use the Back button in order to view the data or return to the
Welcome page. Once you have submitted the form you can no longer make changes until the form has
been made accessible to you again by the NRATS.
Once you have completed the on‐line information form the International NRATS will contact you for an
appointment. The appointment will take approximately 20‐30 minutes. Be prepared to bring to the
appointment: Your passport, I‐94, social security card and all other pertinent immigration
documentation which illustrates your past and present visa history. The W‐4 and any other relevant tax
documents will be completed during the interview with the International Payroll Specialist.