rom 8233

(Rev. October 1987)

Department of the Treasury
Internal Revenue Service

Exemption From Withholding on Compensation
for Independent Personal Services of a

OMB No. 1545-0795,
Expires 8-31-90

Nonresident Alien Individual

This exemption is applicable for compensation for calendar year 19 _

~, or other tax year beginning

andending ____________ 19 ___.
Nonresident Alien Individual (Students, teachers, and researchers: See Changes You Should Note below.)

Name

(see instructions)

‘Address (number and street) in the United States

Taxpayer identification number

United States visa number (if any)

City, state, and ZIP code

Citizens of Canada or Mexico complete either item 1 or item 2; all other filers complete items 1 and 2.

1a Country issuing passport
b Passport number

2 Permanent foreign address

3 Compensation for independent personal services

a Description

b Amount (see instructions) $

c If compensation is exempt from withholding because of aU S. tax treaty, provide:
(1) Tax treaty and provision under which you are claiming exemption from withholding

(2) Your country of residence

d Is your compensation otherwise exempt (or will it be

(If you checked “Yes,” attach a statement explaining why.)

e Additional facts to justify the exemption from withholding

otherwise exempt) from income tax during the tax year? [_]Yes [_]No

4 Number of personal exemptions you are claiming:

(see instructions)

5 Number of days in the period during which independent personal
services are to be performed in the United States:

Under penalties of perury, | declare that | have examined this form and any accompanying statements, and, to the best of my knowledge and belief, they are true, correct, and
complete. | also declare, under penalties of perjury, that | am not a citizen or resident of the United States.

Signature of nonresident alien individual >

Date >

Withholding Agent Certification

Name

Employer identification number

Address (number and street)

City, state, and ZIP code

Telephone number

¢ )

Under penalties of perjury, | certify that I have examined this form and any accompanying statements, that | am satisfied that an exemption from withholding is warranted, and
that | do not know or have reason to know that the nonresident alien individual's compensation 1s not entitled to the exemption or that the eligibility of the nonresident alien's
compensation for the exemption cannot be readily determined.

Signature of withholding agent_>

Date >

General Instructions

(Section references are to the Internal
Revenue Code unless otherwise indicated.)
Paperwork Reduction Act Notice. —We ask
for this information to carry out the Internal
Revenue laws of the United States. We need it
to ensure that taxpayers are complying with
these laws and to allow us to figure and collect
the right amount of tax. If you want to receive
exemption from withholding on compensation

for independent personal services, you are
required to give us this information.

Changes You Should Note

© Withholding agents will now attach all Forms
8233 to the Form 1042, Annual Withholding
Tax Return for U.S. Source Income of Foreign
Persons, that they file with the IRS. Previously,
Form 8233 was attached to Form 1042S,
Foreign Person's U.S. Source Income Subject
to Withholding.

@ Form 8233 should be used by nonresident
alien students, teachers, and researchers to
claim exemption from withholding on
compensation for services that is exempt from
taxation under a U.S. tax treaty. Students
must provide the information required by
Revenue Procedure 87-8, 1987-2 |.R.B. 8.
Teachers and researchers must provide the
information required by Revenue Procedure
87-9, 1987-2 |.R.B. 10. All these individuals

Form 8233 (Rev. 10-87)


Form 8233 (Rev. 10-87)

Page 2

must also provide the information required by
Form 8233, disregarding references to
independent personal services, and then
submit the form to their withholding agent.

Purpose of Form.—In general, section 1441
requires that 30% of amounts paid toa
nonresident alien individual as compensation
for independent personal services (i.e.,
services performed where there is no
employer-employee relationship) be withheld
by the person paying the amount (the
withholding agent) to the individual. This form
is used by nonresident alien individuals to
claim exemption from withholding on
compensation for independent personal
services (under section 1441 andits
regulations) if the exemption is based ona
U.S. tax treaty or on the personal exemption
amount. The form is completed by the
nonresident alien individual claiming
exemption and presented to the withholding
agent for review, If the withholding agent
accepts Form 8233, the withholding agent so
certifies on the same form and forwards it to
the Director, Office of Compliance, Assistant
Commissioner (International), at the address
shown on this page. An accepted Form 8233
is effective only for the tax year shown on the
form. Do not use Form 8233 if you have an
office in the United States regularly available
to you for performing personal services. If you
have an office in the United States regularly
available to you, contact the Director, Office of
Compliance, Assistant Commissioner
(International), for more information.

Definitions

Nonresident Alien Individual.—Any
individual who is not a resident or citizen of
the United States is a nonresident alien
individual. The term also includes a
nonresident alien fiduciary. An alien
individual meeting either the “green card
test” or the “substantial presence test” for the
calendar year is a resident. Those not meeting
either test are nonresident alien individuals.
Note: Nonresident alien individuals married
to U.S. citizens or resident aliens may choose
to be treated as resident aliens for income tax
purposes (e.g., for purposes of filing a joint
income tax return). However, these
individuals are considered nonresidents for
purposes of withholding taxes on nonresident
aliens. For further information on resident
and nonresident alien status, the tests for
residence, and the exceptions to them, see
Publication 519, U.S. Tax Guide for Aliens,
available from the IRS .

Nonresident Alien Fiduciary.—A
nonresident alien fiduciary is a nonresident
alien guardian, trustee, executor,
administrator, receiver, conservator, or other
perscn acting in any fiduciary capacity for any
person. However, a nonresident alien
fiduciary is not a nominee.

Compensation for Independent Personal
Independent personal services
nal services performed in the United
States by an independent nonresident alien
contractor, rather than by a nonresident alien
employee. Included in compensation are
payments for professional services, such as
fees of an attorney, physician, or accountant
made directly to the person performing the
services, consulting fees, and payments for
performances by public entertainers, such as
artists, actors, musicians, and athletes. For
further information, see Publication 515,
Withholding of Tax on Nonresident Aliens and
Foreign Corporations, available from the IRS.

Withholding Agent.—Any person required to
withhold tax on payments made to a
nonresident alien individual is a withholding
agent. Generally, the person who pays or
conveys the item of U.S. source income to the
nonresident alien individual (or to his or her
agent) is liable for the tax and must withhold.
The withholding agent may be an individual,
corporation, partnership, trust, association, or
any other entity. For further information, see
Publication 515.

Specific Instructions
Part!

Taxpayer identification number.—
Nonresident alien individuals (other than
nonresident alien fiduciaries) must enter their
social security number, If you have applied for
one but have not yet received it, enter
“Applied For” and the date you applied in the
space provided. If you do not have a social
security number, apply for one using Form
$S-5, Application for a Social Security Number
Card, and enter “Applied For” and the date
you applied in the space provided. When the
number is received, promptly give it to the
withholding agent. if you are a nonresident
alien fiduciary, enter your employer
identification number.

Items 1 and 2.—Ail filers must complete items
land 2, except citizens of Canada or Mexico,
who can complete either item 1 or item 2

Item 3a.—Describe the independent personal
services for which the compensation is being
(or will be) received, and describe the manner
of compensation (e.g., lump sum, monthly
payments, etc.).

Item 3b.—Enter the amount of compensation
for independent personal services you will be
receiving during the tax year to which this
Form 8233 applies. Enter an estimated
amount if the exact amount is not known

Item 3d.—If the exemption from income tax
withholding is (or will be) based on other than a
U.S. tax treaty (e.g., the personal exemption
amount), explain this in an attached statement.

Item 4.—For determining the amount of
compensation exempt from 30% withholding
because of the personal exemption amount, one
personal exemption is allowed a nonresident
alien individual who is not a resident of Canada
or Mexico, or is not a U.S. national during the
tax year. However, a nonresident alien
individual covered by a U.S. tax treaty with his
or her country may be entitled to exemptions for
a spouse and dependents under certain
circumstances. See the applicable tax treaty for
further information. A nonresident alien
individual who is a resident of Canada or Mexico
or is a U.S. national is generally allowed the
same personal exemptions as a U.S. citizen or
resident. (For further information, see
Publication 519.) Each allowable exemption
must be prorated according to the number of
days in the period during which the personal
services are to be performed in the United
States (item 5 on Form 8233). To figure the
daily proration amount for each allowable
exemption, divide the personal exemption
amount (for example, $1,950 if the individual's
tax year begins in 1988) by 365 (366 fora leap
/ear), Round off the result to the nearest cent.
jote: The persona! exemption amount for any
year can be obtained from the IRS.
Signature.—The nonresident alien individual,
or his or her legally authorized representative,
must sign and date Form 8233 in the
appropriate place.
U.S. Governmant Printing Offion: 1987—201-902/80116

Part Il

Withholding Agent's Responsibilities
Regarding Form 8233.—When you are
presented Form 8233 by the nonresident alien
individual, review it to see if you are satisfied
that the exemption from withholding is
warranted. If, based on the facts presented,
you are satisfied, accept Form 8233 by making
a certification, under penalties of perjury:

© That you have examined Form 8233 and
any accompanying statements;

@ That you are satisfied that an exemption
from withholding is warranted; and

@ That you do not know or have reason to
know that the nonresident alien individual's
compensation is not entitled to exemption or
that the eligibility of the nonresident alien
individual's compensation for the exemption
cannot be readily determined.

Forward Form 8233 and any attachments
within 5 days of your acceptance to:

Assistant Commissioner (International)
Director, Office of Compliance
IN:C:E62

Internal Revenue Service

950 L’Enfant Plaza South, S.W.
Washington, DC 20024

Give the nonresident alien individual a copy
of Form 8233, and attach a copy of Form
8233 to the Form 1042 that you file with the
IRS. Keep a copy of Form 8233 for your
records.

Note: The copies of Form 8233 must also
include any attachments submitted by the
nonresident alien individual originally.

The exemption from withholding becomes
effective for payments made at least 10 days
after you have mailed Form 8233 to the IRS.
(See the instructions for Part |, item 4, for
information on amounts exempt from
withholding because of the personal
exemption amount.)

You must not accept Form 8233 if either of
the following applies

@ |f you know or have reason to know that
any of the facts or statements on Form 8233
may be false; or

You know or have reason to know that the
eligibility of the nonresident alien individual's
compensation for the exemption cannot be
readily determined (e.g., if you know or have
reason to know that a nonresident alien
individual has an office in the United States
regularly available for performing personal
services).

If you accept Form 8233 and subsequently
find that either of the situations described
immediately above applies, you must promptly
notify the Director, Office of Compliance,
Assistant Commissioner (International), in
writing, and you must withhold on any
amounts not yet paid. If you are notified by
that office that the eligibility for the exemption
of the nonresident alien individual's
compensation is in doubt or that the
compensation is ineligible for the exemption,

‘ou must withhold. See Regulations section
1,1441-4(b)(2)(iii) for examples Illustrating
these rules.

Signature. —The withholding agent, or a duly
authorized agent of the withholt ing agent,
must sign and date Form 8233 in the
appropriate place, (See Regulations section
1,1441-7(b) for further information regarding
duly authorized agents.)