|
Taxpayer Identification Numbers |
| Q. | Do
short-term foreign visitors who receive honorarium payments need a Social Security
Number (SSN) or Individual Taxpayer Identification Number (ITIN)?
|
| A. | Yes. All foreign visitors
who receive pay for services in any amount must have either a SSN or an ITIN.
These visitors can apply for an ITIN prior to their visit to the U.S. After entering
the U.S., they can apply to the Internal Revenue Service (IRS) or an acceptance
agent using the Form W-7. Many of the campuses have become certified acceptance
agents and can apply for an ITIN on behalf of the visitor. The Form W-7 and instructions
can be found at the IRS
web site.
|
| Q. | Do
foreign visitors need a SSN or ITIN to receive reimbursement of incidental expenses?
|
| A. | No. Incidental expense
reimbursements that the University pays to or on behalf of visiting scholars,
who are nonresident aliens are not subject to withholding or reporting if the
reimbursements are made in accordance to the IRS accountable plan rules.
|
| Q. | The
department head wants me to find a way to pay our foreign visitor an honorarium
without a SSN or ITIN. He says other universities do not require a taxpayer identification
number. What should I tell him?
|
| A. | The University of California complies
with the IRS regulations governing payments made to foreign visitors. Foreign
visitors paid an honorarium are considered "engaged in a trade or business"
and are required to file a Form 1040NR, U.S. Nonresident Alien Income Tax Return.
A SSN or ITIN must be included on the Form 1040NR.
|
Form 8233 |
| Q. | After
completing the Form 8233, is the exemption from withholding effective
immediately?
|
| A. | No.
The exemption from Federal income tax withholding becomes effective 10 days after
the Form 8233 is mailed to the IRS. However, a campus can make the payment but
assumes withholding liability.
|
| Q. | Must
the withholding agent accept the Form 8233 as prepared by the nonresident alien?
|
| A. | No. You must
not accept a Form 8233 if you know or have reason to know that any of the facts
or statements on the Form 8233 may be false or that the eligibility for the exemption
cannot be determined.
|
Honorarium Payments |
| Q. | Can
I pay an honorarium payment to a B-2 visa holder?
|
| A. | Yes. The American Competitiveness
and Workforce Improvement Act of 1998 contains a provision that allows payment
of honoraria and associated incidental expenses to B-1 and B-2 visa holders for
"usual academic activity," provided that the services do not exceed
nine days at a single institution. This new provision is effective for activities
occurring on or after October 21, 1998. For additional information regarding this
provision, please refer to the Accounting Manual Chapter, T-182-27,
Taxes: Federal Taxation of Aliens or the Payroll
Coordination web site
|
| Q. | Can
an A-1 (Diplomat) visa holder receive an honorarium payment?
|
| A. | Yes. However, clearance
for any work beyond diplomatic work must be given in advance by the Protocol Division
of the Department of State.
|
Services Performed Outside the U.S. |
| Q. | Can I pay a
nonresident alien for services performed outside the United States without an
SSN or ITIN?
|
| A. | Yes.
Payments to a nonresident alien for services performed outside the United States
are not considered U.S. source wages and are therefore not subject to reporting
or withholding.
|
Tax Assistance |
| Q. | I
live in a foreign country; where can I find tax assistance and forms?
|
| A. | The IRS has a permanent
staff in several U.S. Embassies. These offices have forms and publications and
can assist you with your tax questions. For more information about these offices,
please see the following IRS web site: http://www.irs.ustreas.gov/prod/where_file/international.html
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