Accounting Office / Accounts Payable

Non-resident aliens performing services in the United States are subject to 30% withholding for federal taxes unless:

  1. the payee has a U.S. Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN),
  2. the payee is from a country that has a tax treaty with the United States, and
  3. the payee has not exceeded the maximum days in the U.S.

As the maximum days in the U.S. usually is 183 or less, ISU students usually cannot be exempted from withholding.

The image of the most recent (March 2009) IRS Form 8233 must be attached to the request to create a KFS Vendor.

The IRS requires that we submit the original IRS Form 8233, so the original IRS Form 8233 must be sent separately to Bill Cahill in the Accounting Office, 3606 ASB, even though an image of the original is attached to KFS document.

The purpose of the IRS Form 8233 is to determine whether withholding of federal taxes is necessary. If you already know the payee does not qualify for exemption from withholding, you can skip the IRS Form 8233, include the payee's permanent foreign address in the Notes and Attachments section of the DV or ND, and acknowledge that you understand 30% will be withheld.

Instructions for using IRS Form 8233.

Please contact Bill Cahill (294-5124) if you have questions about the IRS Form 8233.




This page was last Updated November 16, 2016.



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