What is Form 8233?
Form 8233 is officially titled the Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Non-Resident Alien Individual.
The US tax form 8233 is issued by the Internal Revenue Service (IRS) and used by non-resident alien individuals to file for an exemption from Federal Income Tax Withholding to compensate for personal services. The exemptions that can be applied with the IRS 8233 Form can come from an income tax treaty that their home country has with the United States or a personal exemption account.
If you are an employer and you have hired a Non-Resident Alien that is applying for Form 8233 IRS, they will require a TIN (Taxpayer Identification Number) and if they do not have one, you can advise them to file Form W-7, Application for IRS Individual Taxpayer Identification Number, and proof that they are not eligible for an SSN.
This application can take a while, so in the meantime, your employee can submit the 8233 tax form to you with a copy of the submitted Form W-7 and their proof of SSN non-eligibility.
Submitting Form 8233
Form 8233 must first be reviewed by employers and provide their information and signature to verify their approval. The form must then be mailed or faxed to the IRS within five days of the date of signing. Employers must also ensure that their employee has a copy of the 8233 form.
If the IRS rejects the 8233 form, employers must immediately begin withholding the applicable taxes.
How to fill out Form 8233?
For people who are interested in acquiring this tax form, you can find a PDF copy of IRS Form 8233 on the official IRS website for you to download and print to complete manually. You can also fill out the form electronically in PDFRun.
The first part of the form details who should use the form and what the form is for.
Who Should Use This Form?
- Non-Resident Aliens (NRA) that are receiving compensation for their services (whether dependent or independent) performed in the US can use this form to claim a tax treaty withholding exemption (Independent personal services, Business profits) for part or all of that compensation.
- NRAs that are receiving a non-compensatory scholarship or fellowship income and personal services income from the same withholding agent can use this form to claim a tax treaty withholding exemption for part or all of both types of income.
Do not use this form…
- NRAs that are receiving compensation for their dependent personal services in the US and are not claiming a tax treaty withholding exemption for that compensation should not use this form. Instead, they can use Form W-4, Employee’s Withholding Certificate.
- NRAs receiving a non-compensatory scholarship and fellowship income and are not receiving any personal services income from the same withholding agent should not use this form. Instead, they can use Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals), or Form W-4, if elected by the withholding agent.
- NRAs that are only claiming foreign status and treaty benefits concerning income that is not compensation for personal services should not use this form. Instead, they should use Form W-8BEN.
Filling out the Form
Before you begin filling out the form in earnest, input first the date of the validity of the exemption. Input the calendar year, the date where the exemption will take full effect, and the date when the exemption will expire.
Part I - Identification of Beneficial Owner
Item 1 — Name of individual who is the beneficiary owner
Input your complete name.
Item 2 — U.S. Taxpayer Identification Number
Input your Taxpayer Identification Number (TIN). In most cases, this will be your Social Security number.
Item 3 — Foreign Tax Identification Number
If you have a Foreign Tax Identification Number, or anything similar, input it here.
Item 4 — Permanent Resident Address
Input your complete permanent address including your street or rural route, apartment or suite number, city or town, state or province, and country (do not abbreviate.)
Include the postal code where it is appropriate. Do not use a P.O. box.
Item 5 — Address in the United States
Input your complete address in the United States including street (or rural route), apartment, or suite number, city or town, state, and ZIP Code.
Do not use a P.O. Box at this address.
Item 6 — U.S. visa type
Input what type of visa you have.
Item 7a — Country issuing passport
Input what country your passport is issued in. If you are from Canada or Mexico, you are not required to fill out this line.
Item 7b — Passport Number
Input your passport number. If you are from Canada or Mexico you are not required to fill out this line.
Item 8 — Date of entry into the United States
Input the date of your arrival in the United States.
Item 9a — Current nonimmigrant status
Input your current nonimmigrant status.
Item 9b — Date your nonimmigrant status expires
Input the date of expiration of your nonimmigrant status.
Item 10 — If you are…
If you are a foreign student, trainee, professor, teacher, or researcher, check the provided box.
Part II - Claim for Tax Treaty Withholding Exemption
Item 11 — Compensation for independent (and certain dependent) personal services:
Item 11a — Description of personal services you are providing
Describe the nature of your services in concise detail.
Item 11b — Total compensation you expect to be paid for these services in this calendar or tax year
Input the amount of compensation you expect for the described services.
Item 12 — If compensation is exempt from withholding based on a tax treaty benefit, provide:
This section is where you detail the nature of your exemption by detailing the tax treaty benefit you are claiming. Input the following details:
- Item 12a — The name of the tax treaty that the exemption you are applying for is based on.
- Item 12b — The article of the treaty wherein the exemption is based on.
- Item 12c — Total compensation as listed on 11b which is exempt from tax under the details of the treaty.
- Item 12d — Your country of residence.
Item 13 — Noncompensatory scholarship or fellowship income
If you are receiving a noncompensatory scholarship or a fellowship income. Input the details of this income here by listing the following details.
- Item 13a — Amount of the income.
- Item 13b — Tax treaty that you are basing the exemption on.
- Item 13c — Article of the tax treaty that you are basing the exemption.
- Item 13d — Total income (13a) that is exempted from withholding tax under the details of the tax treaty.
Item 14 — Sufficient facts to justify the exemption from withholding
This is where you may justify your reasons for claiming the exemption from withholding as detailed in items 12, 13, or both. Ensure that you provide all the sufficient facts to solidify your claim to the exemption.
Part III - Certification
Read the clause above this line thoroughly and confirm your agreement with its declarations by affixing your signature here.
Input the date of signing.
Part IV - Withholding Agent Acceptance and Certification
This part will usually be filled out by your employer or other withholding agents.
Input the name of your withholding agent.
Employer Identification Number
Input the Employer Identification Number of your withholding agent.
Input the complete and current address of your withholding agent. Include apartment or suite number, or P.O. Box, if applicable.
City, state, and ZIP code
Continue the address here by inputting the city, state, and ZIP of the address given.
Input the working telephone number of your withholding agent.
Signature of Withholding Agent
Have your withholding agent read the clause above the line thoroughly, once they understand what is written, affix the signature of your withholding agent here.
Input the day of signing.