Quote from notaxesnow on January 16, 2026, 1:15 am

IRS NOTICE 1392
Supplemental Form W-4 Instructions for Nonresident Aliens
Nonresident aliens must follow special instructions when completing Form W-4, Employee's Withholding Certificate, for compensation paid to such individuals as employees performing dependent personal services in the United States.
Compensation paid to a nonresident alien for performing personal services as an employee in the United States is subject to GRADUATED withholding.
Nonresident aliens must complete Form W-4 using the modified instructions provided later, so that employers can withhold the correct amount of federal income tax from compensation paid for personal services performing in the United States.
^Nonresident aliens may be exempt from wage withholding on part or all of their compensation for dependent personal services under an income tax TREATY. If you are claiming a tax treaty withholding exemption, DO NOT COMPLETE Form W-4. Instead, complete Form 8233, Exemption from Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual...^
Even if you submit Form 8233, the withholding agent may have to withhold tax from your income because the factors on which the treaty exemption is based may not be determinate until after the close of the tax year.
Am I required to file a U.S. tax return even if I am a nonresident alien? Yes. Nonresident aliens who perform personal services in the United States are considered to be engaged in a trade or business in the United States and generally are required to file Form 1040-NR (or Form 1040-NR-EZ). Also, you will need to file (same forms) to claim a refund...

ALL DIRECT TAXES ARE TO BE APPORTIONED. ALL INDIRECT TAXES ARE TO BE UNIFORM.

FROM IRS NOTICE 1392
Supplemental Form W-4 Instructions for Nonresident Aliens
WILL MY WITHHOLDING AMOUNTS BE DIFFERENT FROM WITHHOLDING FOR MY U.S. COWORKERS?
YES. NONRESIDENT ALIENS CANNOT CLAIM THE STANDARD DEDUCTION... (BECAUSE OF THAT) EMPLOYERS ARE INSTRUCTED TO WITHHOLD AN ADDITIONAL AMOUNT FROM A NONRESIDENT ALIEN'S WAGES.
(What? What about 26 CFR 1.1-1?)

A special rule applies to nonresident alien students from India and business apprentices from India... as they may be entitled to claim the standard deduction. (What? WHY DO THEY GET SPECIAL TREATMENT?)
ALL INDIRECT TAXES ARE TO BE UNIFORM.

Nonresident aliens should not use the Tax Withholding Estimator.

AI says:
26 USC 872(b)(3) refers to the exclusion from gross income for nonresident aliens regarding compensation paid by a **^***foreign employer^***** for participation in certain exchange or training programs while temporarily in the United States. This means that such compensation is not subject to U.S. taxation under specific conditions.
Cornell University FindLaw
https://www.law.cornell.edu/uscode/text/26/872
(What? WHY DO THEY GET SPECIAL TREATMENT?)
ALL INDIRECT TAXES ARE TO BE UNIFORM.
REALLY???
THESE INSTRUCTIONS CAN BE READ 2 DIFFERENT WAYS!!
ALIENS EMPLOYED IN THE U.S.
https://www.irs.gov/individuals/international-taxpayers/aliens-employed-in-the-us
Any employer who hires aliens (non-U.S. citizens or residents) to perform services with the United States must follow these general procedures with respect to the reporting ad withholding of federal income taxes:
For income tax withholding purposes, treat nonresident aliens according to the following special withholding rules that apply to nonresident aliens, as described in Chapter 9 of Publication 15 (Circular E) and Publication 515, Withholding Taxes on Nonresident Aliens.
- A nonresident alien should follow the special instructions in NOTICE 1392.
- A NONRESIDENT CANNOT WRITE "EXEMPT" ON LINE 7 OF FORM W-4, Employee's Withholding Allowance Certificate.
- A NONRESIDENT ALIEN MAY CLAIM ONLY "SINGLE " FILING STATUS ON LINE 3 OF FORM W-4, EVEN IF HE IS MARRIED.
- With certain exceptions, A NONRESIDENT ALIEN CANNOT CLAIM MORE THAN ONE PERSONAL EXEMPTION ON FORM W-4.
- Some nonresident aliens are eligible for exemptions from federal income tax withholding on wages because of tax treaties. To claim the exemption they must file Form 8233.
- NONRESIDENT ALIENS WHO FAIL TO FILE, OR FILE AN INVALID FORM W-4, AS REQUIRED BY IRS REGULATIONS SHALL HAVE FEDERAL INCOME TAXES WITHHELD AT THE RATES PERTAINING TO SINGLE STATUS, ZERO EXEMPTIONS.
Exceptions to mandatory withholding of federal income tax on nonresident aliens:
1. ...
2. Wages or Nonemployee Compensation are exempt from withholding of federal income tax if BOTH the following 2 conditions are met (per IRC 872(b)(3)):
- The nonresident alien is present in the U.S. in F, J, M, or Q non-immigrant status; AND
- The compensation for services is paid by a nonresident alien individual, a foreign corporation, or a foreign partnership or the foreign office of a U.S. citizen or resident alien individual, a ^U.S. corporation^, or a U.S. partnership (including from within a U.S. possession).
THE ABOVE SENTENCE CAN BE READ 2 DIFFERENT WAYS, and is void for vagueness.
It could be read to say:
- The compensation for services is paid by a ^U.S. corporation^, as well as the others mentioned.

In 26 USC 872(b)(3) it says that
The nonresident alien is present in the U.S. in F, J, M, or Q non-immigrant status.

What does that mean?

That clause in 26 USC 872(b)(3) means a foreign individual (nonresident alien) in the U.S. on specific temporary visas (F, J, M, or Q) is treated differently for U.S. tax purposes, often being exempt from some taxes like Social Security/Medicare and not counted fully under the Substantial Presence Test, allowing them to remain a "nonresident alien" for longer periods (typically 5 years for students, 2 for exchange visitors) before potentially becoming a U.S. tax resident, based on their visa's purpose (study, exchange, training).
What it means for visa types:
F-1 & M-1 (Students): Students on these visas are generally considered nonresidents for their first 5 calendar years in the U.S..
J-1 & Q-1 (Exchange Visitors): Teachers, researchers, and trainees on these visas are generally considered nonresidents for their first 2 calendar years.
Purpose: These visas are for temporary stays for specific educational or cultural exchange purposes, not permanent immigration.
Key tax implications:
Exemptions: Wages for services performed under these visas (like teaching or research) are often exempt from FICA (Social Security & Medicare) taxes.
Substantial Presence Test (SPT): Days spent in the U.S. under these visas usually don't count towards the SPT, which determines tax residency, for the initial periods (5 years for F/M, 2 years for J/Q).
Maintaining Status: To keep these benefits, individuals must comply with their visa requirements (e.g., attend school, engage in approved activities).
In essence, this statute provides temporary tax relief and non-resident status for individuals pursuing education or cultural exchange, recognizing their non-permanent presence in the U.S..