Any payments made to a third party for a NRA are subject to withholding and are reported to the IRS at the end of the year on a Form 1042S. Examples of these types of payments would be payments made directly to an airline or hotel. The NRA must complete a Travel Authorization and forward it along with Form 8233, the Visitor Information Form, and copies of his/her visa and I-94 to the Accounts Payable office. The NRA will need a Social Security Number or an ITIN for any travel payments made on their behalf to a third party.

These third party payments may be subject to withholding. If the NRA is from a country that the U.S. has a treaty with, we will forward a copy of the Form 8233 to the IRS to apply for the treaty benefits. Again, a ten-day waiting period would be required before the exemption would be valid.

If no tax treaty is in place, the IRS requires that the NRA pay the 30% withholding based on the amount of the payments made to any third parties. We will withhold this amount and then remit it to the IRS.