Tax Forms

The 8233 is an Internal Revenue Service (IRS) mandated form to collect correct Nonresident Alien (NRA) taxpayer information for both individuals and entities for reporting purposes and to document their status for tax reporting purpose.

Internal Revenue Code (IRC), section 1441 requires 30% income tax withholding on compensation for independent personal services. However, some payments may be exempt from withholding because of a tax treaty. This tax is imposed on the gross amount paid and is generally collected by withholding under section 1441.

A withholding agent or payer of the income may rely on a properly completed form 8233 to treat a payment associated with the form 8233 as a payment to a foreign person who beneficially owns the amounts paid. If applicable, the withholding agent may rely on the form 8233 to apply a reduced rate of– or exemption from–withholding at source, also known as a tax treaty benefit. See applicable tax treaties on the Tax Treaties for Independent Contractors and Scholarships web page.

Form 8233 usage

Form 8233 is used for honorariums if tax treaty exemption applies for Independent Personal Services. To determine if tax treaty applies, refer to Tax Treaties for Independent Contractors and Scholarships. Scroll down to find the country in question, and make sure a treaty exists for Independent Personal Services income for the particular country.

How often to obtain Form 8233

UW policy states a new form 8233 must be obtained for all Nonresident Alien (NRA) payments made by the UW. Prior year 8233 forms cannot be used in subsequent years because Nonresident Alien (NRA) statuses may change from year-to-year, and even during a calendar year.

Signature requirements

The person who signs a 8233 must be a Nonresident Alien (NRA).

Digital/electronic signatures

Current as of 2/8/22: Electronic font signatures are not acceptable. The only allowable digital signatures are validated e-signatures from Adobe Acrobat or DocuSign and must have the electronic signature validation envelope intact. A validation envelope is unique to the signer’s digital ID and helps ensure the document’s security and authenticity.

This information can also be found in the Financial Managers Meeting (FMM) 2/8/22 presentation slides (PDF) pages 43-44.

Form 8233 and instructions

Important:

• The UW will only accept current versions of any Internal Revenue Service (IRS) or Wisconsin Department of Revenue forms. These can be found at the IRS Forms web page and the Wisconsin Department of Revenue Forms web page.
• Use of a non-current form will delay payment processing because the non-current form has to be returned to the preparer. The current form must be completed before the payment can be processed so the university can be in compliance with IRS and WI DOR regulations and forms.

IRS Form 8233 information and PDFs (irs.gov)

The W-8BEN-E is an Internal Revenue Service (IRS) mandated form to collect correct Nonresident Alien (NRA) taxpayer information for entities for reporting purposes and to document their status for tax reporting purpose. (The form for individuals is the W-8BEN.)

In addition, the W-8BEN-E is a required document when making Non-U.S. Source Income payments to a Nonresident Alien (NRA); these are payments when the services performed are (1) performed by a NRA, and (2) are performed outside the United States. For details on Non-U.S. Source Income payments, please refer to Non-U.S. Source Income (Payments to Non-Resident Aliens for work performed Outside the U.S.)

Nonresident Aliens are subject to U.S. tax at a 30% rate on income they receive from U.S. sources that consists of:

• Interest (including certain original issue discount (OID))
• Dividends
• Rents
• Royalties
• Premiums
• Annuities
• Compensation for, or in expectation of, services performed
• Substitute payments in a securities lending transaction
• Other fixed or determinable annual or periodical gains, profits, or income

This tax is imposed on the gross amount paid and is generally collected by withholding under section 1441. A payment is considered to have been made whether it is made directly to the beneficial owner or to another person, such as an intermediary, agent, or partnership, for the benefit of the beneficial owner.

A withholding agent or payer of the income may rely on a properly completed W-8BEN-E to treat a payment associated with the W-8BEN-E as a payment to a foreign person who beneficially owns the amounts paid. If applicable, the withholding agent may rely on the W-8BEN-E to apply a reduced rate of–or exemption from–withholding at source also known as a tax treaty benefit.  See applicable tax treaties at Tax Treaties for Independent Contractors and Scholarships.

W-8BEN-E usage

Effective January 1, 2010 the Form W-8BEN has two uses at the UW:

1. A completed and signed W-8BEN-E is required for all tax reportable transactions made to a Nonresident Alien (NRA) of the United States.  This includes all payment mechanisms used at the UW. The W-8BEN-E is the equivalent of the W-9 for used for U.S. Persons. Tax reportable payment and associated Account Codes are posted at 1099-MISC and 1042-S Tax Reportable Payments (PDF).
2. Use Form W-8BEN-E for Scholarship/Fellowship Grants if a tax treaty exemption applies. The treaty must include a provision for Scholarship/Fellowship Grants. To determine if the tax treaty applies, refer to the Tax Treaties for Independent Contractors and Scholarships web page.

How often to obtain W-8BEN-E

The UW policy is that a new W-8BEN-E must be obtained for all Nonresident Alien (NRA) payments made by the UW. Prior year W-8BEN-E forms cannot be used in subsequent years because Nonresident Alien (NRA) statuses may change from year-to-year, and even during a calendar year.

Signature requirements

The person who signs a W-8BEN-E must be a Nonresident Alien (NRA).

Digital/electronic signatures

Current as of 2/8/22: Electronic font signatures are not acceptable. The only allowable digital signatures are validated e-signatures from Adobe Acrobat or DocuSign and must have the electronic signature validation envelope intact. A validation envelope is unique to the signer’s digital ID and helps ensure the document’s security and authenticity.

This information can also be found in the Financial Managers Meeting (FMM) 2/8/22 presentation slides (PDF) pages 43-44.

Form W-8BEN-E and instructions

Important:

• The UW will only accept current versions of any Internal Revenue Service (IRS) or Wisconsin Department of Revenue forms. These can be found at the IRS Forms web page and the Wisconsin Department of Revenue Forms web page.
• Use of a non-current form will delay payment processing because the non-current form has to be returned to the preparer. The current form must be completed before the payment can be processed so the university can be in compliance with IRS and WI DOR regulations and forms.

IRS Form W-8BEN-E information and PDFs (irs.gov)

The W-8BEN is an Internal Revenue Service (IRS) mandated form to collect correct Nonresident Alien (NRA) taxpayer information for individuals for reporting purposes and to document their status for tax reporting purposes. (The form for entities is the W-8BEN-E.)

In addition, the W-8BEN is a required document when making Non-U.S. Source Income payments to a Nonresident Alien (NRA); these are payments when the services performed are (1) performed by a NRA, and (2) are performed outside the United States. For details on Non-U.S. Source Income payments, please refer to Non-U.S. Source Income (Payments to Non-Resident Aliens for work performed Outside the U.S.).

Nonresident Aliens are subject to U.S. tax at a 30% rate on income they receive from U.S. sources that consists of:

• Interest (including certain original issue discount (OID))
• Dividends
• Rents
• Royalties
• Premiums
• Annuities
• Compensation for, or in expectation of, services performed
• Substitute payments in a securities lending transaction
• Other fixed or determinable annual or periodical gains, profits, or income

This tax is imposed on the gross amount paid and is generally collected by withholding under section 1441. A payment is considered to have been made whether it is made directly to the beneficial owner or to another person–such as an intermediary, agent, or partnership–for the benefit of the beneficial owner.

A withholding agent or payer of the income may rely on a properly completed W-8BEN to treat a payment associated with the W-8BEN as a payment to a foreign person who beneficially owns the amounts paid.  If applicable, the withholding agent may rely on the W-8BEN to apply a reduced rate of, or exemption from, withholding at source also known as a tax treaty benefit. See applicable tax treaties at Tax Treaties for Independent Contractors and Scholarships.

W-8BEN usage

Effective January 1, 2010 the Form W-8BEN has two uses at the UW:

1. A completed and signed W-8BEN is required for all tax reportable transactions made to a Nonresident Alien (NRA) of the United States.  This includes all payment mechanisms used at the UW. The W-8BEN is the equivalent of the W-9 for used for U.S. Persons.  Tax reportable payment and associated Account Codes are posted at 1099-MISC and 1042-S Tax Reportable Payments (PDF).
2. Use Form W-8BEN for Scholarship/Fellowship Grants if a tax treaty exemption applies. The treaty must include a provision for Scholarship/Fellowship Grants. To determine if the tax treaty applies refer to the Tax Treaties for Independent Contractors and Scholarships web page.

How often to obtain W-8BEN forms

UW policy states a new W-8BEN must be obtained for all Nonresident Alien (NRA) payments made by the UW. Prior year W-8BEN forms cannot be used in subsequent years because Nonresident Alien (NRA) statuses may change from year-to-year, and even during a calendar year.

Signature requirements

The person who signs a W-8BEN must be a Nonresident Alien (NRA).

Digital/electronic signatures

Current as of 2/8/22: Electronic font signatures are not acceptable. The only allowable digital signatures are validated e-signatures from Adobe Acrobat or DocuSign and must have the electronic signature validation envelope intact. A validation envelope is unique to the signer’s digital ID and helps ensure the document’s security and authenticity.

This information can also be found in the Financial Managers Meeting (FMM) 2/8/22 presentation slides (PDF) pages 43-44.

Form W-8BEN and instructions

Important:

• The UW will only accept current versions of any Internal Revenue Service (IRS) or Wisconsin Department of Revenue forms. These can be found at the IRS Forms web page and the Wisconsin Department of Revenue Forms web page.
• Use of a non-current form will delay payment processing because the non-current form has to be returned to the preparer. The current form must be completed before the payment can be processed so the university can be in compliance with IRS and WI DOR regulations and forms.

IRS Form W-8BEN information and PDFs (irs.gov)

The W-9 is an Internal Revenue Service (IRS) form in which a taxpayer provides their correct taxpayer identification number (TIN) to an individual or entity (Form W-9 requester) who is required to file an information return to report the amount paid to a payee, or other amount reportable on an information return. A TIN may be a social security number (SSN), individual taxpayer identification number (ITIN), adoption taxpayer identification number (ATIN), or federal employer identification number (EIN/FEIN/FEIN/FEIN).

The UW requires the W-9 form for all tax reportable transactions as of January 1, 2010.

Implementation of the W-9 reporting process (January 1, 2010)

1. The UW needed to have a signed legal document on file to support and document the tax information when it makes a tax reportable payment. The required document is the IRS W-9 form.  The W-9 captures all the required tax information for tax reporting. This includes (1) name, (2) business name, (3) type of entity, (3) exempt status, (4) address, (5) taxpayer identification number, and (6) signature.
2. Effective January 1, 2010 the UW requires a completed and signed form W-9 (or W-8BEN for Nonresident Aliens (NRA)_ be attached to all tax reportable payments made through all payment mechanisms (PIR/DP/PO, etc.). Tax reportable payments and associated Account Codes are posted at 1099-MISC and 1042-S Tax Reportable Payments.
3. As of August 9, 2010, Business Services has incorporated the W-9 indicator field in the WISDM Vendor Search. When processing tax reportable payments through any UW payment mechanism please check the WISDM Vendor Search to determine if a W-9 (or W-8 BEN for Nonresident Aliens (NRA)) is on file at Business Services. If a W-9 is on file, you will not need to include a W-9 with your payment requests. If a W-9 is not on file, you will need to include a W-9 with your first payment request to a vendor so the vendor can be set up at Accounting Services and the Taxpayer Identification Number (TIN) can be verified with the IRS TIN Matching Program. For tax reportable transactions, if a W-9 is not on file per the WISDM Vendor Search and you do not include the W-9 with your payment requests, Business Services will put your payment request on hold and inform you that you need to get a W-9 before the payment is released for processing.

Download – How To Use Vendor Search in WISDM for SFS AP Transactions (PDF)

W-9 Usage

The W-9 form is required by an individual or entity (Form W-9 requester) who is required to file an information return with the IRS and must obtain the payee’s correct taxpayer identification number (TIN) to report on an information return the amount paid to a payee, or other amount reportable on an information return. A TIN may be a social security number (SSN), individual taxpayer identification number (ITIN), adoption taxpayer identification number (ATIN), or employer identification number (EIN/FEIN).

How often to obtain W-9

Form W-9 remains valid unless a change in circumstances makes any information on the form incorrect; examples: a change in name or a change in type of entity. Please note a change in address does not require a new W-9.

Signature requirements

The person who signs a W-9 must be a U.S. person, an individual who is a U.S. citizen or a U.S. resident alien. The signer should have the organization’s consent to sign a W-9 on its behalf.

IRS Form W-9 is most commonly used by individuals when they are working as a freelancer or independent contractor. If you ever find yourself filling out a Form W-9, it generally means a business or person who is paying you money needs your U.S. Taxpayer Identification number (TIN)–which can be the U.S. Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), or Federal Employer Identification Number (EIN/FEIN)–so the business/person can notify the IRS of the amount.

Minors: In the case of a minor, the W-9 should be completed with the minor’s name and the minor’s Taxpayer Identification Number (TIN) since they are the owners of the payment being made. The signature can be either the minor’s signature or the legal guardian’s (parent or court appointed legal guardian). A minor cannot sign a contract, but the W-9 is not a contract. The W-9 is just giving the name and TIN of the minor, therefore a legal guardian is not required, but is only encouraged.

Digital/electronic signatures

Current as of 2/8/22: Electronic font signatures are not acceptable. The only allowable digital signatures are validated e-signatures from Adobe Acrobat or DocuSign and must have the electronic signature validation envelope intact. A validation envelope is unique to the signer’s digital ID and helps ensure the document’s security and authenticity.

This information can also be found in the Financial Managers Meeting (FMM) 2/8/22 presentation slides (PDF) pages 43-44.

Form W-9 and instructions

Important:

• The UW will only accept current versions of any Internal Revenue Service (IRS) or Wisconsin Department of Revenue forms. These can be found at the IRS Forms web page and the Wisconsin Department of Revenue Forms web page.
• Use of a non-current form will delay payment processing because the non-current form has to be returned to the preparer. The current form must be completed before the payment can be processed so the university can be in compliance with IRS and WI DOR regulations and forms.

IRS Form W-9 information and PDFs (irs.gov)