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:nrat@unr.edu

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.

D

E

F

I

N

I

T

I

O

N

S

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 nrat@unr.edu 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 nrat@unr.edu.   

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.