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.