APS Awardee Responsibilities and Tax Rules
Any
payment by APS for an award which requires a service as a condition of
the award (e.g., presenting an abstract, lecture, etc.) will be treated
as compensation for services and will be subject to reporting to IRS as
independent personal services. Forms and instructions for completing
the forms mentioned below are available from the
IRS Website or by writing to the IRS.
In
order to receive payment of any of the awards presented at the annual
Experimental Biology meeting, completed tax forms must be received by APS by
the close of business February 28. If completed forms are not received by
that date, payment will be sent to the awardee after the meeting. If
completed tax forms have not been received by APS by the close of business
April 30th, awardee payments will be reduced by the applicable backup
withholding rate.
Completed forms may be mailed to:
APS
Business Office
9650 Rockville Pike
Bethesda, MD 20814
U.S.
Persons may also fax their Form W-9 to: (301) 634-7418.
Travel
expense reimbursements will not be considered income and will not be
reportable, provided that the amount is paid or reimbursed under the
general accountable plan rules requiring (1) a business connection for
the expense, (2) substantiation of the expense, and (3) return of any excess
payments.
U.S.
Persons (including resident aliens):
Awardees must provide identifying information to The APS. U.S. persons
(including resident aliens) must forward a completed
W-9 Form to APS at the
address or fax number above. If Form W-9 is not received, payments may be
subject to a 28% withholding tax.
Nonresident Foreign Individuals:
Persons
participating in the Exchange Visitors Program must obtain written
authorization from their Responsible Officer to engage in occasional
lectures or short-term consultations involving wages or other remuneration.
Any
payment by APS to a nonresident foreign individual will be subject to NRA
tax withholding and reporting. Withholding on the payment will generally be
at a 30% rate. This rate may be reduced or eliminated however, if there is
an income tax treaty between the United States and the foreign individual's
country of tax residency. To claim treaty benefits, an eligible individual
must file Form 8233
with APS (or Form W-8BEN
if no services are required as a condition of the award), which requires
that the foreign individual provide a U.S. taxpayer identification number (ITIN)
and identify the treaty article providing the exemption. For further
information, visit the IRS website for
applicable instructions and publications.
Compensation payments to foreign persons will be reported by APS to the IRS
on Form 1042-S, Foreign Persons U.S. Source Income Subject to Withholding,
under Income Code 16 as "Compensation for independent personal services."
Nonresident individuals may be required to file a Form 1040NR (U.S.
Nonresident Alien Income Tax Return) or the simplified 1040NR-EZ with the
IRS to declare the compensation income set forth on the Form 1042-S. The
filing of Form 1040NR (or 1040NR-EZ) is generally required by April 15th of
the calendar year following the year of payment. Filing may result in the
refund of withheld amounts through the application of a treaty exemption,
personal exemption, or certain other limited deductions.
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