Friday, June 24, 2011

IRS Updates Nonresident Alien Form Instructions

There is now a June 2011 version of the Form 8233 instructions, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, on the IRS website.

Compensation paid to a nonresident alien individual for independent personal services (self-employment) performed in the U.S. is generally subject to a 30% withholding rate, or to graduated tax rates (see Code Sec. 1441). However, some payments may be exempt from withholding due to a tax treaty or personal exemption amount. Form 8233 is used to request exemption from withholding. Nonresident alien students, teachers, and researchers performing dependent personal services also use Form 8233 to request exemption from withholding.

Form 8233 should now be sent to the following address: Department of the Treasury, Internal Revenue Service, Philadelphia, PA 19255-0725. The fax number has been changed to: (267) 941-1365.

The form itself has not been revised. Nonresident aliens should continue to use the March 2009 version of the form.

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