Research Administration Discussion Group wrote:
>
> I am interested to know how other universities and research organizations are
> handling payments for travel, room and board, and honoraria expenses to guest
> speakers who are non-resident aliens when they visit your institutions to give
> seminars, lectures, etc.
>
> Our central administration has brought to our attention that according to IRS
> regulations it is illegal to make any type of reimbursement for expenses
> incurred by a non-resident alien for items such as meals, airline tickets, or
> other expenses if they do not have a business visa.  It is also illegal to
> make payments directly to a vendor (hotels, airlines) on behalf of the
> non-resident alien. If they have a B-1 visa we can only pay expenses but no
> honoraria.  Only those with H-1B, F-1,J-1, TN, or O visa can receive financial
> remuneration.
>
> Our financial folks reported that several large universities have been audited
> by the IRS on this issue and had to pay several MILLIONS in unpaid taxes,
> interest and penalties. Has anyone out there in RESADM-land had first hand
> experience with our friends at the IRS over this issue?
>
> As we all know, the reality is most foreign guest speakers are invited by
> faculty members as a goodwill gesture and often the foreign guest is in the
> country on their way to a professional meeting, usually on a tourist visa.  It
> is our understanding this IRS policy has been in place for several years, but
> most institutions are unaware of it and it is rarely implemented by the
> inviting institution.  The IRS is just now starting to crack down on
> non-compliance.
>
> It's not even April 15th yet!
>
> Tom Shallow
> Dept. of Microbiology
> UCHSC
>
> xxxxxx@UCHSC.edu
Tom,
    Our center and department have a form that is sent to all visitors
for any and all of the situations you mentioned.  It requests certain
information to be supplied prior to their arrival as well as stating
that a flat 30% will be deducted from any payments they do receive.
    I think(and that's THINK) that we have been audited by the IRS and
found to have had problems in this area.  I am checking on this for you
and will supply you with the name of the person you can talk to about
it.
Let me know if you need copies.
     Carol    xxxxxx@Lehigh.edu