Tax Services for International Students
Many international students and trainees are unfamiliar with U.S. tax law and may inadvertently file an incorrect tax return or fail to file any tax return. This can cause serious problems and may endanger their visa status. Some grantees seek the help of professional tax return preparers, but these services can be quite expensive because very few commercial preparers have expertise in the complex field of nonresident alien scholarship taxation.
IIE’s grantee tax preparation service GRANTAX® will provide professional assistance (through IIE’s Grantax group as well as 3rd party tax preparer) to scholarship recipients in filing appropriate Federal and State tax returns. The filing fee associated with these services has been budgeted for each visitor.
Participant Taxes for Projects in the U.S.
IIE has solid institutional experience in providing administrative support in connection with tax as required by U.S. law. The Institute provides administrative functions related to gathering grantee tax documentation, completing ITIN request forms, and facilitating grantee communications. IIE also facilitates the completion of grantee returns through an outside tax service who is responsible for preparing and completing all tax forms for grantees, confirming that tax withholding is done correctly and that tax returns are filed on time each year.
The following provides an overview of Grantax services for students and sponsors. Please do not hesitate to contact us with any questions about these services.
For students in the U.S., IIE’s Grantax team prepares statements of income and prepares and files IRS Form 1042S. IIE's Grantax team can file federal and state income tax returns and administers tax payments and refunds, while acting as a resource for tax questions from students, and also ensures that any tax refunds will be returned to IIE for use in the program, as directed by the sponsor, rather than sent by the IRS directly to the student.
It is mandatory for some of IIE’s sponsored grantees to file their tax returns through Grantax, but not every IIE grantee is offered the Grantax service. If you are a current IIE grantee, please contact Grantax or your IIE advisor to ask if you qualify for the Grantax service.
When IIE’s Grantax department provides federal and state tax filing services to various programs and sponsors; specifically, IIE will be authorized to:
- Receive and inspect the students’ tax information;
- Sign the students’ individual tax returns;
- Develop an equalization schedule to determine the sponsor and students’ tax refund or liability; and
- Receive and negotiate all corresponding tax refund checks on behalf of the students.
Completed tax returns will be mailed to the IRS and a copy sent to students. IIE will collect and endorse and negotiate the federal refund checks on behalf of the students. If you are a sponsor and you have questions about our tax services, please send an e-mail to firstname.lastname@example.org.