All payments made to or on behalf of a foreign national are generally subject to income tax withholding unless specifically exempted either by U.S. tax law or an income tax treaty. The payments are generally required to be reported to the IRS. Example of such payments include, but are not limited to
- compensation,
- scholarships/fellowships,
- stipends,
- independent contractor payments,
- certain travel payments,
- royalties,
- salary/wages,
- living allowances,
- awards,
- consultant payments and
- honoraria.