Transcript BUSINESS VISITORS TO VANDERBILT (Immigration & Taxation Concerns) Dahlia M. French, Esq. Director Alicia Dinoso-Sharpnack, Sr.

BUSINESS VISITORS TO
VANDERBILT
(Immigration & Taxation Concerns)
Dahlia M. French, Esq. Director
Alicia Dinoso-Sharpnack, Sr. Int’l Tax Advisor
Elizabeth Shadbolt, Int’l Tax Advisor
VISIT RESPONSIBILITIES
In August 2009, the Office of International Services (OIS) and the
International Tax Office (ITO) joined and a few months later adopted the
acronym “VISIT” (Vanderbilt International Services & International Tax).
VISIT is responsible for all employment and business immigration services
and international tax determinations at Vanderbilt. This includes
assisting international business visitors with immigration matters and
ensuring payments to visitors (and certain international vendors) are
properly taxed.
The international tax and immigration teams maintain separate functions
but there are increased sharing and cross-responsibilities. The core of
international tax duties remain with the international tax team but the
immigration advisors can provide initial Glacier assistance.
BUSINESS VISITOR QUESTIONNAIRE (BVQ)
With an continued focus on automating and simplifying immigration and
international tax process, VISIT updated it website, increased the amount
of information available through self-services and created questionnaires
that can be submitted online.
The BVQ is available at
http://www.vanderbilt.edu/visit/enews/questionnaire.php. It should be
completed by all international visitors to Vanderbilt regardless of whether
they are receiving a payment.
The BVQ should be completed thirty days before the business visitor
arrives in the USA.
BVQ (CONT’D)
Why is the BVQ important?
 Allows VISIT to capture the necessary information to determine the taxation on any
taxable payment to the business visitor.
 Allows VISIT to prepare a Letter of Invitation that can be used to obtain a B-1 or B-2
visa from a US Consulate
 Letter of Invitation can also be used a US Customs & Border Protection (CBP) to allow
visitor to enter the USA. (This is important for visitors traveling in Visa Waiver status)
 Letter of Invitation is not the same as letter provided by the department. VISIT’s letter
contains the necessary immigration language that both the consulate and US Customs
need to understand the purpose of the visit and the immigration regulation permitting a
business visit of this nature.
BVQ (CONT’D)
Once the BVQ is submitted it goes to the VISIT groupmail box and an
advisor begins working on the process. An immigration advisor will
send a Letters of Invitation; normally within 48 hours. An
international tax advisor will create the Glacier record and send the
necessary tax documents to the business visitor for signature and
return.
Visitor then sends copies of immigration documents by e-mail or fax.
Needed documents include:
 Visa waiver visitors:
 Passport data page
 ESTA approval
 Visa waiver visitors will not have an I-94
 Canadian citizen visitors:
 Passport data page
 Canadian visitors will not have ESTA approval or an I-94
 Other international visitors:
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Passport data page
Visa stamp
I-94
Letter giving permission to accept payment (J-1 visitors)
CHECK REQUEST
(CR) PROCESS
Check Requests (CR) are always sent to Disbursements first. Include all
receipts and evidence of the business purpose of the visit (invited
speaker, conference, etc.).
No immigration documents are needed since that information has
already been given to VISIT through the BVQ process.
Disbursements will send all CR related to business visitors to VISIT for
an international tax review.
If VISIT already has a BVQ, Glacier record and signed Glacier documents
from visitor, we can quickly complete our analysis and return the CR to
the appropriate check issuance site (Disbursements, HR Processing or
Medical Center Demand Check)
VISIT’S CHECK REQUEST LOG
In the interest of transparency, VISIT now post CR information on the website. The Check
Request Log is updated each Friday and can be viewed at
http://www.vanderbilt.edu/visit/enews/check-request-log-01-12--2011.pdf.
Check Request Log page is also accessible from the “Quick Links” menu bar on the VISIT
homepage (www.vanderbilt.edu/visit).
CR Log shows:
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CR number
Payment amount
Date received by VISIT
Date forwarded by VISIT for check issuance
Receiving Office
Comments
Links to Receiving Offices are also provided for additional assistance & updates
INCOME TAX TREATIES
The USA has income tax treaties with
various foreign countries. Under these
treaties, residents of foreign countries are
taxed at a reduced rate, or are exempt
from U.S. income taxes on certain types of
US source income. These reduced rates
and exemptions vary among countries
and specific items of income.
If the treaty does not cover a particular
kind of income, or if there is no treaty
between the USA and a particular foreign
country, residents or citizens of that
foreign country pay taxes on US income.
TAX TREATIES, CONT’D
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An individual must have an Individual Taxpayer Identification Number (ITIN) or
Social Security Number (SSN) to apply for a tax treaty benefit.
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VISIT will advise on the availability of a tax treaty when the Glacier record is created
and send the completed tax treaty documents to the business visitor by e-mail. The
visitor needs to simply review, sign and date the documents and return them to
VISIT.
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Vanderbilt is responsible for sending the tax treaty forms to the IRS so we cannot
apply the tax treaty benefits until these forms are signed and returned to our office.
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Alternatively, the visitor can claim benefits at the time of tax filing by submitting
Form 8233 with the tax filing itself (1040-NR). Normally occurs when the visitor
failed to complete Form 8233 and taxes were withheld but now wants a refund of
income taxes withheld.
PERSONAL DAILY WITHHOLDING ALLOWANCE
IRS allows for a $10.14 daily exemption for each day of
physical presence in the USA.
All business visitors receiving payment for independent
personal services (honorariums, speaker fees, etc.)
can claim the personal daily withholding allowance.
Allowance reduces the taxation on the payment and
reduces the “gross up” amount should the
department want to gross up.
TAX REPORTING OF PAYMENTS
Income, taxable and exempt per a treaty benefit, and the taxes withheld, are
reported to the IRS on Form 1042-S.
The 1042-S form is available electronically via Glacier by March 15 of the following
tax year; The W-2 is mailed to individuals by January 31 of the following tax year.
VISIT will look for all legal avenues to reduce taxation (tax treaties, personal daily
withholding allowance, etc.) but some payments are simply taxable.
Certain payments to business visitors are considered legitimate business expenses
and these payments are not considered income. They are not taxable.
Examples include:
 Travel expenses for an invited speaker
 Incidental expenses for an invited speaker
 Travel and incidental expenses for persons attending a conference or other event are
taxable unless the visitor is an invited participant providing a service at the event
QUESTIONS?