How do I treat nonresident alien individuals who are working as independent contractors?
In order to claim a tax treaty exemption from withholding from some or all compensation paid for personal services (a foreign person who is working as an independent contractor), use Form 8233, Exemption from Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual. Refer to the Form 8233 section in the Pub 515, Withholding of Tax on Nonresident Aliens and Foreign Entities.
