Exemption from Withholding on Compensation for Independent Personal Services of a Nonresident Alien Individual.

1. Purpose of Form:
   
   In general, Section 1141 of the Internal Revenue Code requires 30% Federal income tax withholding on payments to nonresident aliens for independent personal services.  However, some payments may be exempt from withholding because of a tax treaty or the personal exemption amount.  Form 8233 should be completed if the individual wishes to apply for tax exemption.
    
2. Notes:

• Upon submission of the form to the General Accounting office, the form will be forwarded to the Payroll Department for review.  If accepted, the form will be mailed by the Payroll Office to the IRS within 5 days of receipt.  The exemption from withholding is effective for payments made at least 10 days after the postmarked date.  Travel Expenses may be reimbursed, but will be reporting to the IRS on either a Form 1099 or 1042.
• A payment before the tax exemption effective date may be processed, however, federal income tax will be withheld at a rate of 30%.
• An accepted Form 8233 is effective only for the tax year shown on the form.  A new form must be filed with the IRS every year the individual wishes to be exempt from income tax.