Diagnostic Services

We conduct an in-depth review of an institution's current U.S. tax withholding and reporting procedures for all types of payments made to foreign nationals, including scholarship/fellowship grants, compensation to employees and independent contractors, honorarium/guest lecturer fees, and royalties. This review will determine the extent of liability risk associated with noncompliance and identify any gaps or weaknesses in the current method of operation. The review will also look at correct compliance procedures to target areas of inefficiency and provide suggestions for more efficient and effective ways to handle the situation.

Evaluation

Is your institution in compliance? Are you confident that significant gaps and weaknesses do not exist? Did you "fix the problem" several years ago, but haven't thought about it since?

Our Evaluation is designed primarily for institutions that have (i) few or no policies and procedures with respect to nonresident alien tax compliance currently in place, or (ii) compliance programs that were implemented several years ago and have undergone little or no update or modification since implementation. The Evaluation focuses on the way payments are currently handled; therefore, no assessment is made as to previous liability (however, Arctic International LLC can make such assessments should the institution request).

Before arriving on-site, we begin with a pre-evaluation information request, data review, and site-visit planning. At the on-site visit (generally two days), we review documentation and interview various individuals involved in payroll, accounting, student accounts, international student office, and other related departments. We present "sample" situations and ask the institution's personnel to describe how they would be handled, then we evaluate the systems to determine whether gaps exist. We also test "live" situations to determine the extent to which problems or inefficiency may exist. Within approximately three weeks, we will present a written Evaluation Report, including a discussion of our findings, strengths and weaknesses, recommendations for correcting any identified weaknesses, and, if appropriate, a general overview of our suggested game plan for assistance in getting into compliance. Should the institution desire, we will also conduct a feedback session with those interviewed to discuss our report and findings - stressing the positive issues of working toward compliance rather than focusing on weaknesses. After our on-site review, the institution may request that we not prepare a written report, in which case, we will allow more time on-site to discuss our findings and recommendations, if any.

Check-up Review

How comfortable are you that the tax compliance program at your institution has been properly maintained and updated? Have there been changes in personnel that cause you to wonder whether issues once in compliance now go unnoticed or handled improperly? When was the last time your policies and procedures were reviewed and updated?

Our Checkup Review is designed primarily for institutions that have a tax compliance program in place and simply wish to have it "tested" on a regular basis to confirm that the policies and procedures continue to be in compliance, as well as handled in the most efficient and cost-effective manner. The Checkup Review includes a feedback session and workshop to discuss recent/upcoming changes in the law and how they will affect the institution.

For More Information

To discuss how Arctic can assist your institution in better managing its nonresident alien tax compliance issues or to obtain a proposal for services, please Contact Us at 202.223.4583