TRAVEL PAYMENTS TO NONRESIDENT ALIENS The Internal Revenue Service (IRS) imposes complex regulations for payments to nonresident aliens.  Everyone that is not a U.S. citizen or permanent resident alien is considered a nonresident alien. Nonresident aliens are taxed only on their U.S. source income, but generally at a higher rate of tax than U.S. citizens and permanent resident aliens. Travel payments are generally not subject to tax withholding if paid according to Texas A&M Research Foundation travel payment procedures and if the travel benefitted Texas A&M University or Texas A&M Research Foundation. Effective 1/1/2011, payments to foreign nationals will be processed only after a complete packet of documentation is received through Glacier, an online nonresident alien tax compliance system, and reviewed for compliance with IRS regulations. Please note that payments to nonresident aliens for work performed outside of the United States are neither reportable nor taxable. If this is the case, projects/departments should indicate this on the expense account form or attach a detailed memorandum explaining that the work is being performed outside of the U.S.  The payee must provide a completed and signed form W-8BEN. Attach this form to the expense account form and forward to travel for processing.