Tax and Compliance Services

Key Terms & Definitions

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

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Federal Insurance Contributions Act (FICA): Payroll taxes withheld from your salary that fund both the U.S. Social Security and Medicare programs. Employees who are full-time students or nonresident aliens (F-1s/J-1s) do not have to pay FICA taxes.

Form 1042S: IRS form showing international person's U.S. source invomce and tax withholding. Issued no later than March 15th of every year (for previous calendar year). All international persons with nonwage payments and taxes or wages that were exempt from tax withholding due to a tax treaty will receive this form.

Form 8233: IRS form used, by international persons, to request application of tax treaty exemption or tax treaty benefits, as applicable.

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GLACIER: Web-based database used to collect immigration information needed for all international personnel tax files. Information captured determines whether an international person is a non-resident alien or resident alien for tax purposes.

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I-9 Form: USCIS form completed by all domestic and international employees requiring them to show proof of employment eligibility in the U.S.

I-94, I-94W: Foreign visitors to the U.S. arriving via air or sea no longer need to complete a paper Form I-94 Arrival/Departure Record. The CBP arrival/department record information can now be accessed online.

Immigration Law: Law that determines what an individual in each specific visa type can do, whether the person can be employed and whether or not payments can be made to that individual.

International Revenue Service (IRS): Agency in the U.S. Department of Treasury responsible for enforcing the internal revenue laws.

IRS Regulations: Determine whether persmissible payments to an international person are potentially taxable and/or reportable, and how the payments should be categorized (e.g. salary, wages, independent contractor fees, stiepends, scholarships, fellowships, etc.)

Individual Taxpayer Identification Number (ITIN): Number issued by the IRS to individuals not religible for a social security number who have tax filing requirement or who wish to file for a tax refund.

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Non-Resident Alien for Tax Purposes: A person who is not a U.S. citizen, refugee, asylee or permanent resident, and has not met the substantial presence test.

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Permanent Resident: Person who has been granted permission to remain in the U.S. indefinitely, so long as they continue to meet permanent resident qualifications or do not elect to relinquish the status. These individuals are also know as 'green card' holders.

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Resident Alien for Tax Purposes: Person who is not a U.S. citizen or permanent resident, but has me the substantial presence test.

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Sprintax: On-line tax return preparation software created specifically for international students and scholars. The software will help you navigate U.S. federal tax forms, residency status, tax treaties, exemptions and deductions.

Substantial Presence Test: A mathematical test used to determine residency in the U.S. for tax purposes.

SS-5: Application for a Social Security Number.

Social Security Administration (SSA): Agency responsible for issuing SSN.

Social Security Number (SSN): A permanent nine-digit identification number/card issued by the Social Security Administration (SSA). It is used primarily to identify participants in the federal government's Social Security Program but because it is unique to each person the number is now used by many other public and private organizations. Anyone employed in the United States must obtain a social security number.

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U.S. Citizen: Person born in the U.S. or who meets specific criteria related to birth and parents. May also include a person who is 'naturalized' by meeting certain criteria.

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Visa Status: Classifications used by the U.S. Department of Homeland Security that define the reason for the person coming to the U.S., the nature of any services, for whom they can performed and what remuneration can be received.

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W-2: Employer Wage and Tax Statement issued to persons whith wages no later than January 31st of each year for use in filing a tax return.

W-4: Employees Withholding Allowance Certificate; provided to employer to determine amount of tax to withhold from wages. (Special rules for nonresident aliens)

W-7: Application for Taxpayer Identification Number; persons receiving payments but who do not qualify for a SSN must apply for an ITIN.

W-8BEN: Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding; most often used here for persons claiming tax treaty benefits for scholarship or fellowship grants.

W-8ECI: Certificate of Foreign Person’s Claim for Exemption from Withholding on Income Effectively Connected with the Conduct of a Trade or Business in the United States. Used by foreign companies to claim an exemption from withholding based on the fact they are registered to do business in the U.S. and are required to file a tax return based on business profits.

W-9: Request for Taxpayer Identification Number and Certification; required of certain persons receiving wages who have tax treaty benefits.