Exemption from Withholding on Compensation

I teach full-time at a university in Canada. This summer I will be teaching two week-long courses at a conference for teachers in the US. I have done this for many years and have simply claimed the income when I filed my tax return in Canada. Several years ago I started to get requests from the conference and other organizations I have worked for in the US to fill out Forms 8233 and W-8BEN. I did this and no money was deducted for taxes. Last summer an organization told to get an ITIN. I got one and they did not withhold any money. I did not have my ITIN in time for the conference last summer and for the first time ever, I had money deducted at the source for taxes. I filed a US tax return through an accountant and paid dearly for the work. I got the money back but it cost me a lot to get it.

The organizers of the conference have told me that they are going to deduct money this summer even though I have an ITIN and I have sent them forms 8233 and W-8BEN. Can anyone provide me with some advice? How do I convince them not to deduct the money?

Several teacher friends of mine are teaching courses at the conference this year and they have been asked to complete a Foreign National Information Form and to bring a copy of their completed I-94 Form. Here is the message they were sent today. It is the same one that I was sent last year. It seemed to me that the Foreign National Information Form was for citizens from countries other than Canada and the I-94 Form seemed like an odd thing to ask for. I ignored both requests.

Any help would be greatly appreciated.

The Mathguy

Message sent to non-US teachers who will be leading courses at the conference

Please fill out the attached form completely, and get it back to us as soon as you possibly can. It will help us to determine any IRS forms that you may need to complete for us. Also, if you can provide your bank information (Bank name, address, IBAN number, and SWIFT code), and your complete address, we can wire your payment directly to you. Thank you in advance, it is greatly appreciated.

It is pretty simple to file a 1040NR to get the money back. Shame on the acct for charging any more than about $35.

W-8BEN and 8233 should have been sufficient. In fact, one or the other alone should have been sufficient. You have your ITIN now, so that shouldn't be an issue, although I don't think you even needed it. If they ask for your I-94, and you have one, you should give them a copy. That is used for form 8233, but not applicable to Cdns.

In any event, even if they withhold you this year, simply use last years 1040NR as a template.

it seems to simply be a case of a differnt acct in charge, with different preferences and level of knowledge.

Dear Agnelson:

Thank you very much. I do not have an I-94 when I go through customs. I have a NEXUS pass and just go through. I was told by a customs agent that payment for a conference presentation could be regarded as an honorarium. Any thoughts about the I-94 or the honorarium?

Also, is that Foreign National Information Form for Canadians?

It doesn't matter what its called. It US sourced and exempt from tax. You are entering on B1, which is undocumented.

The foreign national information form was somethiong dreamed up by the schools accountant. Fill it and forget it.