Payments to foreign nationals follow the same TU procedures as payments to U.S. citizens or permanent residents with the addition of an extra step - the Nonresident Alien (NRA) Tax Office. If a foreign national meets the IRS definition of a nonresident alien for tax purposes, Towson University as withholding agent must follow certain mandatory tax withholding and reporting requirements. Immigration status, income category, and prior U.S. visit history are some of the factors that the NRA Tax Office must evaluate for tax withholding. Allowing time for this extra step in your planning will help to ensure that the university is in compliance with all federal and state regulations when engaging foreign nationals for services and making payment to them. Payment details should be worked out prior to any visit and performance of service.
This website provides a summary of the most common situations and payment categories. If you are involved in a situation not described here, please contact the NRA Tax Office to discuss.