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Line 12b

and children. See Pub. 519 for more

You know, or have reason to know,

information.

that any of the facts or statements on

If all income received for the services

Form 8233 may be false, or

performed to which this Form 8233

You know, or have reason to know,

Lines 16 and 17

applies is exempt, write “All.” If only part

that the nonresident alien's eligibility for

is exempt, enter the exact dollar amount

Each allowable personal exemption

the exemption from withholding cannot

that is exempt from withholding.

must be prorated for the number of days

be readily determined (for example, you

during the tax year you will perform the

Line 12c

know the nonresident alien has a fixed

personal services in the United States.

base or permanent establishment in the

Generally, you can claim a withholding

Enter the number of days on line 16 that

United States).

exemption based on a U.S. tax treaty

pertain to the independent personal

with the country in which you claim

If you accept Form 8233 and later

services described in line 11a. To figure

permanent (or indefinite) residence.

find that either of the situations

the daily personal exemption amount to

This is the foreign country in which you

described above applies, you must

enter on line 17, divide the personal

live most of the time. It is not necessarily

promptly notify the IRS (by writing to the

exemption amount for the tax year

the country of your citizenship. For

address provided earlier) and you must

($4,050 for 2016) by 366 (normally 365,

example, you are a citizen of Pakistan

begin withholding on any amounts not

but 2016 is a leap year) and multiply the

but maintain your home in England. You

yet paid. Also, if you are notified by the

result by the amount you entered on

cannot claim a withholding exemption

IRS that the nonresident alien's eligibility

line 15. For example, if you are entitled

based on the U.S.-Pakistan tax treaty.

for the exemption from withholding is in

to one personal exemption for 2016,

Any withholding exemption you claim

doubt or that the nonresident alien is not

enter $11.07 ($4,050 / 366 days =

must be based on the U.S.-United

eligible for exemption from withholding,

$11.07 X 1 personal exemption =

Kingdom tax treaty.

you must begin withholding

$11.07) on line 17.

immediately. See Regulations section

Line 13b

Part IV

1.1441-4(b)(2)(iii) for examples

Enter the specific treaty and article on

illustrating these rules.

which you are basing your claim for

Withholding Agent's

If you submit an incorrect Form 8233,

exemption from withholding (for

Responsibilities

you will be notified by the IRS that the

example, “U.S.-Germany tax treaty,

When the nonresident alien individual

form submitted is not acceptable and

Article 20(3)”).

gives you Form 8233, review it to see if

that you must begin withholding

Line 14

you are satisfied that the exemption

immediately. Examples of incorrect

from withholding is warranted. If you are

Provide sufficient facts to justify the

Forms 8233 include:

satisfied, based on the facts presented,

exemption from withholding claimed on

Any Form 8233 that claims a tax

complete and sign the certification in

line 12 and/or line 13. Be sure you

treaty benefit that does not exist or is

Part IV.

provide enough details to allow the IRS

obviously false.

to determine the tax treaty benefit you

Any Form 8233 that has not been

You will need three copies of the

are claiming.

completed in sufficient detail to allow

completed Form 8233. Each copy of

determination of the correctness of the

Lines 15 through 18 (for certain

Form 8233 must include any

tax treaty benefit or exemption claimed.

attachments submitted by the

independent personal services)

Signature

nonresident alien individual. Give one

Do not complete lines 15 through 18 if

copy of the completed Form 8233 to the

You or your authorized agent must sign

you are claiming an exemption from

nonresident alien individual. Keep a

and date Form 8233. See Regulations

withholding based on the “business

copy for your records. Within 5 days of

section 1.1441-7(c) for information

profit” article of a treaty or claiming on

your acceptance, forward one copy to:

about authorized agents.

line 12b that all of the compensation you

are receiving for independent personal

Department of the Treasury

Privacy Act and Paperwork Reduc-

services is exempt from withholding.

Internal Revenue Service

tion Act Notice. We ask for the

Philadelphia, PA 19255-0725

information on this form to carry out the

Line 15

Internal Revenue laws of the United

For compensation for independent

States. You are not required to request

personal services for which an

a tax treaty withholding exemption.

You also can fax Form 8233 to

exemption from withholding is not

However, if you want to receive

267- 466-1365. You are limited

available, 30% must be withheld from

exemption from withholding on

to 25 pages at one time.

that compensation after subtracting the

compensation for independent (and

value of one personal exemption. In

certain dependent) personal services,

The exemption from withholding is

most cases, you will enter “1” on line 15;

you are required to give us this

effective for payments made retroactive

however, if the exception described

information so that we can verify

to the date of the first payment covered

next applies to you, enter the total

eligibility under the relevant tax treaty

by Form 8233, even though you must

number of personal exemptions you are

and confirm proper tax treatment. Our

wait at least 10 days after you have

entitled to on line 15.

legal right to ask for this information is

properly mailed Form 8233 to the IRS to

Internal Revenue Code sections 1441,

Exception. If you are a resident of

see whether the IRS has any objections

3401, and 3402. We need this

Canada, Mexico, or South Korea; a

to the Form 8233.

information to ensure that you are

student from India; or a U.S. national;

You must not accept Form 8233, and

complying with these laws and to allow

you may be able to claim additional

you must withhold, if either of the

us to figure and collect the right amount

personal exemptions for your spouse

following applies:

of tax. Code section 6109 requires

Instructions for Form 8233 (Rev. 10-2016)

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Instructions For Form 8233 - Exemption From Withholding On Compensation For Independent (And Certain Dependent) Personal Service Of A Nonresident Alien Individual Page 6

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