CU-Boulder and CU Denver employees can schedule appointments with an international tax specialist via our online appointment scheduling system.

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1 INTERNATIONAL TAX OVERVIEW The university's internatinal tax specialists prvide guidance t internatinal emplyees and university departments regarding taxatin respnsibilities and the legality f salary/independent persnal services/hnraria payments under the Internal Revenue Cde (IRC), Sectin This team als wrks with the internatinal ffices n each campus t ensure cmpliance with immigratin wrk authrizatin regulatins. Any questins cncerning strictly immigratin matters, such as apprpriate visa status, prcessing f immigratin (as ppsed t taxatin) paperwrk, changes f immigratin status, etc., shuld be directed t the apprpriate campus internatinal ffice. Any questins abut taxatin issues related t payments fr internatinal individuals shuld be directed t these tax specialists. TAXATION ISSUES RELATED TO INTERNATIONAL EMPLOYEES Whenever a department hires an internatinal emplyee (researcher, visiting prfessr, teaching assistant, research assistant, student hurly), the department must send that individual t an internatinal tax specialist----ideally befre any payment is made----t discuss taxatin status, and t cmplete the relevant tax paperwrk. Departments shuld never, under any circumstances, prvide tax advice r tax frms (e.g., Frm W-4) t internatinal emplyees. T d s withut the supervisin f an internatinal tax specialist culd result in ptential illegalities and fines fr the emplyee and fr the university. T make an appintment with an internatinal tax specialist: CU-Bulder and CU Denver emplyees can schedule appintments with an internatinal tax specialist via ur nline appintment scheduling system. Emplyee Services Phne: Fax: Tll free: emplyeeservices@cu.edu

2 UCCS emplyees shuld cntact an internatinal tax specialist, as fllws, t arrange an appintment as nline scheduling fr UCCS is nt yet available: If the emplyee s last name begins with letter A-L, cntact: Kendra Zafirats: r Kendra.Zafirats@cu.edu If the emplyee s last name begins with letter M-Z, cntact: Alicia Dandeneau: r Alicia.Dandeneau@cu.edu TAXATION ISSUES RELATED TO INTERNATIONAL INDEPENDENT PERSONAL SERVICES/HONORARIA PAYMENTS and REIMBURSEMENTS IRC and immigratin regulatins gverning independent persnal services and hnraria payments t internatinal individuals are varied and ften cnfusing. Whenever a department plans t make such payments, the mst imprtant step is t determine ahead f time the immigratin status in which the individual shuld enter the United States by wrking with an internatinal tax specialist. Once the apprpriate immigratin status is determined, tax frms and immigratin dcumentatin required fr apprval f the payment can be identified. All payment vuchers and scpes f wrk fr independent persnal services/hnraria payments t internatinal individuals must be ruted thrugh an internatinal tax specialist fr payment authrizatin and taxatin. All internatinal independent persnal services and hnraria payments are taxed at the statutry rate f 30 percent, with the exceptin f payments deemed freign surce incme. Freign surce incme payments are payments made fr services perfrmed entirely utside the United States by individuals wh are nt citizens, permanent residents, r residents fr tax purpses. Such payments are neither taxable nr reprtable t the Internal Revenue Service (IRS). Reimbursements t internatinal individuals, while smetimes nt taxable, d als Emplyee Services Phne: Fax: Tll free: emplyeeservices@cu.edu

3 require specific dcumentatin fr apprval. Departments wishing t reimburse an internatinal individual shuld wrk with an internatinal tax specialist t determine what is required. Questins abut payments fr independent persnal services, hnraria and reimbursements shuld be addressed t the apprpriate internatinal tax specialist as fllws: If the payee s last name r cmpany name begins with letter A-L, cntact: Kendra Zafirats: r Kendra.Zafirats@cu.edu If the payee s last name r cmpany name begins with letter M-Z, cntact: Alicia Dandeneau: r Alicia.Dandeneau@cu.edu TAXATION ISSUES RELATED TO INTERNATIONAL SCHOLARSHIP RECIPIENTS Qualified schlarships (i.e., tuitin waivers r any prtin f a schlarship that is directly applied t tuitin and fees) that are paid t nnresident internatinal degree candidates are nntaxable and nt reprtable t the IRS. Nn-qualified prtins f schlarships (i.e., any leftver mney that is remitted directly t the internatinal student after tuitin and fees have been paid, and that can be used as discretinary incme) are taxable at the rate f 14 percent. The university remits these taxes t the IRS and places a crrespnding charge n students tuitin bills. Students will be ntified by when a taxable schlarship has been identified n their accunts. In sme circumstances, tax treaty eligibility might prvide an exemptin t the 14 percent taxatin. The schlarship recipient shuld cntact an internatinal tax specialist t find ut abut any existing treaty benefits. True schlarships are nt t be cnfused with teaching/research assistantships. Under IRC definitins, a true schlarship is ne where n service is required in rder t receive the mney. Emplyee Services Phne: Fax: Tll free: emplyeeservices@cu.edu

4 When a teaching r research assistantship is a cnditin f receiving the schlarship, the IRC defines the mney earned as cmpensatin fr services rendered, and thus subject t graduated withhlding (W-4) rates. Fr any questins abut these issues, cntact the apprpriate internatinal tax specialist as fllws: If the schlarship recipient s last name begins with letter A-L, cntact: Kendra Zafirats: r Kendra.Zafirats@cu.edu If the schlarship recipient s last name begins with letter M-Z, cntact: Alicia Dandeneau: r Alicia.Dandeneau@cu.edu SOCIAL SECURITY NUMBER ISSUES The Scial Security Administratin has mandated new regulatins when internatinal individuals apply fr Scial Security numbers. Applicatin infrmatin must be cmpared with infrmatin in the immigratin database. If any discrepancies in infrmatin are fund, the issuance f a number can be significantly delayed. While the majrity f new emplyees still receive their numbers within a nrmal perid f time, sme are affected by the SSA prcedures and may pssibly wait up t 12 weeks t receive a number. In an attempt t alleviate the incnveniences f such delays, the directrs f Emplyee Services and the fur campus internatinal ffices met in August 2002 t establish a plicy under which temprary tax identificatin numbers culd be issued, in certain restricted circumstances. Yu may review the plicy fr mre infrmatin. Emplyee Services Phne: Fax: Tll free: emplyeeservices@cu.edu

5 Tw salient pints in the plicy: Temprary numbers may nly be assigned if n Scial Security number has been issued after 30 days f emplyment; and, Temprary numbers are valid fr nly eight weeks frm the date f issue. T be issued a temprary number, the internatinal emplyee must make an appintment with the apprpriate internatinal tax specialist after 30 days f emplyment have passed, and must present t the internatinal tax specialist the letter issued by the Scial Security Administratin at the time f applicatin fr the Scial Security number. Emplyee Services Phne: Fax: Tll free: emplyeeservices@cu.edu