What is Form 8233?
Form 8233 is an official document issued by the United States Internal Revenue Service (IRS) which is used by nonresident alien individuals for the purpose to claim exemption from withholdings on payment received after providing independent and certain dependent personal services.
What are Form 8233 instructions?
Form 8322 instructions are as appended below:
- An employee or applicant may submit form 8233 with the Withholding Agent
- An employee or applicant must complete the separate 8233 form for
- For each tax year (surely specifying the tax year at the space above part-I of the form
But, one form (Form 8233) for filing a claim pertaining to tax treaty exemption may be used for both,
- The personal service compensation (this may include income compensation against fellowship or scholarship)
- Another non-compensation income against fellowship or scholarship from the same withholding agent
What is important to know for Form 8233?
Along with other facts, it is important to know for Form 8233 that:
- The Nonresident Alien (NRA) is a professor invited to lecture in the United States who delivers lectures at different institutions in a capacity like self-employment. In this case, the professor may apply for a tax exemption - on the income received against such lecture services - based on the treaty if the treaty permits so
- Here it is vital to know that such an applicant should provide a number of 8233 forms to the withholding agent (separate forms 8233 for each institution serving)
- The employers must check form 8233 and write in their information and put the signature in part-IV – withholding agent acceptance and certification
- The form must be either mailed or faxed to the IRS within five days after the approval and sign
- Employers must keep an official copy with the office, and provide the copy to NRA employee
- If the IRS returns the employee’s form 8233 unapproved, the employer must start withholding the taxes from the paychecks of the concerned employee
What are the key terminologies to know in terms of form 8233?
Following are the key terms to know for form 8233:
Non-resident Alien (NRA): Someone not having green card status in the US or does not meet the substantial presence test – the person is not a US citizen, therefore, but pays taxes due to income earned by the provision of the services in the United States
Taxpayer Identification Number (TIN)
Employer Identification Number (EIN)
Individual Taxpayer Identification Number (ITIN)
Pending US adoptions’ Taxpayer Numbers: Adoption Taxpayer Identification Number (ATIN) and Preparer Taxpayer Identification Number (PTIN)
Tax treaty: Bilateral agreement between two countries mentioning therein taxation rules and regulations for the citizens’ incomes
Withholding Agent: Any individual custodian of the withholdings
Dependent Personal Services: Services provided by an NRA who is employed with some employer
Independent Personal Services: The provision of services by an NRA who is self-employed
Please visit the IRS official page for the latest and updated information - IRS Form 8233