UC Controller
Nonresident alien questions & answers
Taxpayer Identification Numbers
- Do short-term foreign visitors who receive honorarium payments need a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)?
- Do foreign visitors need a SSN or ITIN to receive reimbursement of incidental expenses?
- 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?
Form 8233
- After completing the Form 8233, is the exemption from withholding effective immediately?
- Must the withholding agent accept the Form 8233 as prepared by the nonresident alien?
Honorarium payments
- Can I pay an honorarium payment to a B-2 visa holder?
- Can an A-1 (Diplomat) visa holder receive an honorarium payment?
Services performed outside the U.S.
Tax assistance
Do short-term foreign visitors who receive honorarium payments need a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)?
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.
Do foreign visitors need a SSN or ITIN to receive reimbursement of incidental expenses?
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.
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?
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.
After completing the Form 8233, is the exemption from withholding effective immediately?
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.
Must the withholding agent accept the Form 8233 as prepared by the nonresident alien?
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.
Can I pay an honorarium payment to a B-2 visa holder?
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
Can an A-1 (Diplomat) visa holder receive an honorarium payment?
Yes. However, clearance for any work beyond diplomatic work must be given in advance by the Protocol Division of the Department of State.
Can I pay a nonresident alien for services performed outside the United States without an SSN or ITIN?
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.
I live in a foreign country; where can I find tax assistance and forms?
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.gov/localcontacts/article/0,,id=101292,00.html