PROCEDURE FOR FOREIGN STUDENT SCHOLARSHIPS, FELLOWSHIPS AND STIPENDS

To ensure compliance with Immigration and Naturalization Service (INS) laws and Internal Revenue Service (IRS) requirements, please follow the procedures outlined below when paying scholarships, fellowships and stipends to nonresident alien students.

NONRESIDENT ALIEN STUDENT ELIGIBLE FOR A TAX TREATY

If the nonresident student is from a country with tax treaty benefits the student may be exempt from income tax. Direct the individual to Pam Hill in the Controllers Office, Old Main Room 026, 435-797-1049, to determine eligibility for the treaty benefit. The student must bring their Passport, Visa, and I-20 or IAP66 with them. The student will complete a W-8BEN form verifying tax-exempt eligibility and take a copy back to the department. The department should attach the W-8BEN to a check request for payment of a scholarship, fellowship or stipend and submit the documents to Accounts Payable.

NONRESIDENT ALIEN STUDENT NOT ELIGIBLE FOR A TAX TREATY

1. Obtain the student's Social Security Number (SSN) or Tax Identification Number (ITIN) if the Social Security Administration or the IRS has already assigned a number. If the student does not have a SSN or ITIN number he/she must apply for one.
2. Obtain a copy of the student's Passport
3. Obtain a copy of his/her Visa and/or the I-94 (The INS departure card stapled in the passport that indicates the Visa status assignment and the authorized date of entry), indicating the Visa type issued. This will indicate whether or not the INS has granted the nonresident alien permission to work or receive "compensation" while in the U. S.
4. Obtain a copy of the nonresident alien's Immigration form I-20 (if on an F Visa) or IAP-66 (if on a J Visa).
5. Have the student fill out a Foreign Visitor Information Form
6. Have the student fill out Form W-8BEN (http://www.irs.ustreas.gov/formspubs/lists/0,,id=97796,00.html).
7. Prepare a check request for Accounts Payable indicating the account number and amount of full payment. In account number 0-01030-2330 subtract 14% for taxes and indicate the difference (net) on the total line

   Attach the following to the check request:

   Copy of Passport Copy of Visa or I-94 Copy of I-20 or IAP66 Foreign Visitor Data Collection Form W-8BEN

8. Retain a copy of the check request and other documents for departmental files.

ROUTING

After obtaining appropriate signatures, send the check request and appropriate attachments to Utah State University, Accounts Payable, UMC 2400, Old Main Room 026, Logan UT 84322-2400.

For questions call Pam Hill 435-797-1049