*Foreign Nationals Defined

Foreign Nationals, also referred to as aliens, are persons who are not United States citizens. The IRS distinguishes between two types of aliens for federal income tax purposes; resident aliens (RAs) and nonresident aliens (NRAs). Payments to nonresident aliens (and some resident aliens) are subject to special taxability and reporting rules. For additional information on RAs and NRAs, see OBFS Policies and Procedures Manual, 18.2 Foreign Nationals .