Userid: CPM Schema: instrx Leadpct: 100% Pt. size: 9 Draft Ok to Print AH XSL/XML Fileid: … ns/I8233/202011/A/XML/Cycle05/source (Init. & Date) _______ Page 1 of 6 13:31 - 21-Oct-2020 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. Department of the Treasury Instructions for Form 8233 Internal Revenue Service (Rev. November 2020) (Use with the September 2018 revision of Form 8233.) Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual Section references are to the Internal 3402 require withholding, sometimes at However, you can use one Form 8233 Revenue Code unless otherwise noted. 30% and sometimes at graduated rates, to claim a tax treaty withholding exemption on compensation for dependent personal for both compensation for personal General Instructions services (defined later). However, some services (including compensatory payments may be exempt from scholarship or fellowship income) and withholding because of a tax treaty. noncompensatory scholarship or Future Developments Complete and give Form 8233 to your fellowship income received from the same For the latest information about withholding agent if some or all of your withholding agent. developments related to Form 8233 and compensation is exempt from withholding. its instructions, such as legislation Give the form to the withholding agent. enacted after they were published, go to You can use Form 8233 to claim a tax The withholding agent's responsibilities IRS.gov/Form8233. treaty withholding exemption for are discussed in the Part IV instructions. noncompensatory scholarship or You must know the terms of the fellowship income only if you are also Example. A nonresident alien is ! tax treaty between the United claiming a tax treaty withholding primarily present in the United States as a CAUTION States and the treaty country to exemption for compensation for personal professor, but is also occasionally invited properly complete Form 8233. services (including compensatory to lecture at other educational institutions. scholarship or fellowship income) received These lectures are not connected with his from the same withholding agent. teaching obligations but are in the nature What’s New of self-employment. For each tax year, the COVID-19 medical condition travel ex- If you have income from professor must complete and give a ception (Rev. Proc. 2020-20 excep- independent personal services, separate Form 8233 to the withholding tion). The IRS has provided relief from you generally cannot claim a agent at each institution in order to claim withholding on compensation for certain treaty exemption if you have an office or tax treaty benefits on the separate items of dependent personal services for fixed base in the United States available to income, if the treaty so permits. individuals who were unable to leave the you, including if you are a partner in a partnership that has an office or fixed COVID-19 medical condition travel ex- United States due to the global health ception (Rev. Proc. 2020-20 excep- emergency caused by COVID-19. For base. A few treaties include limited exceptions to this general rule. tion). If your withholding agent currently more information, see COVID-19 Medical treats your income as exempt based on a Condition Travel Exception (Rev. Proc. Additional information. You can previously submitted Form 8233, you are 2020-20 Exception) under Definitions, download the complete text of most U.S. not required to provide an additional Form later. If you have income from tax treaties at IRS.gov/Businesses/ 8233 to obtain the COVID-19 Medical independent personal services (defined International-Businesses/United-States- Condition Travel Exception (discussed later) performed in the United States due Income-Tax-Treaties-A-to-Z. Technical later). However, if you are required to to travel disruptions related to the explanations for many of those treaties are submit a Form 8233 to have the COVID-19 Emergency, as defined in Rev. also available on that site. withholding agent treat your income as Proc. 2020-20, see IRS.gov/faqs-for-non- exempt, follow the instructions to resident-alien-individuals-and-foreign- General information about tax treaties complete the form. See the instructions for businesses-with-employees-or-agents- is available at IRS.gov/Individuals/ line 14 to see how to complete that line of impacted-by-covid-19-emergency-travel- International-Taxpayers/Tax-Treaties. the form. disruptions for additional information. Also, see Pub. 901 for a quick reference guide to the provisions of U.S. tax treaties. If you do not provide a new Form 8233 See Form 8843 if you had a specific to the withholding agent, or if the medical condition, including the COVID-19 You can get any of the forms or withholding agent has already withheld medical condition travel exception as publications referred to in these income tax that would be exempt from described in Rev. Proc. 2020-20 that kept instructions by downloading them from withholding, you can file Form 1040-NR you from leaving the United States. IRS.gov/Forms or ordering them from and attach a statement including the same IRS.gov/OrderForms. information requested on the Form 8233 Reminders (including the phrase “COVID-19 Giving Form 8233 to the MEDICAL CONDITION TRAVEL Individual taxpayer identification num- EXCEPTION”, your COVID-19 Emergency ber (ITIN). You may need to renew your Withholding Agent Period (defined later), the applicable tax ITIN. See Expired ITIN, later. You must complete a separate Form 8233: treaty, and the applicable tax treaty article Purpose of Form • For each tax year (be sure to specify to obtain a refund of the withholding on the tax year in the space provided above your income). In general, section 1441 requires 30% Part I of the form), income tax withholding on compensation • For each withholding agent, and for independent personal services • For each type of income. (defined later). Sections 1441, 3401, and Oct 21, 2020 Cat. No. 22663B Page 2 of 6 Fileid: … ns/I8233/202011/A/XML/Cycle05/source 13:31 - 21-Oct-2020 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. Definitions COVID-19 Emergency Period. A single country’s domestic law, and (2) under the period of up to 60 consecutive calendar terms of the residency article of the tax COVID-19 Medical Condition days you select, starting no earlier than treaty between the United States and that Travel Exception (Rev. Proc. February 1, 2020, but no later than April 1, country. 2020, during which you were physically 2020-20 Exception) A nonresident alien can claim a tax present in the United States, but were Travel and related disruptions from the treaty benefit on this form only if that unable to leave due to COVID-19 global outbreak of the COVID-19 virus individual is the beneficial owner of the Emergency Travel Disruptions. may cause certain eligible individuals (as income and meets the residency defined in section 3.04 of Rev. Proc. How to report. See Giving Form 8233 to requirement and all other requirements for 2020-20), who did not anticipate meeting the Withholding Agent, earlier, for more the requested benefits under the terms of the substantial presence test (see information on how to claim the COVID-19 the tax treaty. Nonresident Alien, later), to become Medical Condition Travel Exception (Rev. residents of the United States for federal Proc. 2020-20 Exception). If you are claiming a benefit under income tax purposes during 2020 and either the income from employment/ More information. For more information, dependent personal services article or the may impact an individual’s qualifications see Rev. Proc. 2020-20, 2020-20 I.R.B. for certain treaty benefits. Regardless of income from independent services/ 801, available at IRS.gov/irb/ business profits article of the treaty, you whether individuals were infected with the 2020-20_IRB#REV-PROC-2020-20. COVID-19 virus, they may have become must be a resident of the treaty country. severely restricted in their movements, Nonresident Alien However, if you are claiming a benefit under the student/trainee or teacher/ including by order of government If you are an alien individual (that is, an authorities. researcher article of a treaty, you generally individual who is not a U.S. citizen), only need to have been a resident of the specific rules apply to determine if you are Individuals who do not have the treaty country immediately before (or at a resident alien or a nonresident alien for COVID-19 virus and attempt to leave the the time) you came to the United States. tax purposes. Generally, you are a United! States may also face canceled CAUTION resident alien if you meet either the “green Compensation for Independent flights and disruptions in other forms of card test” or the “substantial presence transportation, shelter-in-place orders, Personal Services test” (see COVID-19 Medical Condition quarantine, and border closures. Independent personal services are Travel Exception (Rev. Proc. 2020-20 Additionally, even those who can travel services performed as an independent Exception), earlier) for the calendar year. may feel unsafe doing so due to contractor in the United States by a Any person not meeting either test is recommendations to implement social nonresident alien who is self-employed generally a nonresident alien. Additionally, distancing and limit exposure to public rather than an employee. Compensation an alien individual who qualifies as a spaces (collectively, COVID-19 for such services includes payments for resident of a treaty country (defined later) Emergency Travel Disruptions). contract labor; payments for professional or a bona fide resident of Puerto Rico, Therefore, an eligible individual who fulfills services, such as fees to an attorney, Guam, the Commonwealth of the Northern the requirements of the COVID-19 physician, or accountant, if the payments Mariana Islands, the U.S.