Taxpayers Employed by International Organizations

Wages paid by international organizations are not subject to federal withholding requirements.

The term "international organization" means a public international organization, designated by Executive Order as being entitled to enjoy privileges, exemptions, and immunities as an international organization under the International Organizations Immunities Act (22 U.S.C. 288-288f). See Exhibit 5.19.11-1, International Organizations Exempt from Federal Withholding Requirements for a list of international organizations.

If the taxpayer or employer responds that the taxpayer works for an international organization and you have confirmed that the organization is listed in Exhibit 5.19.11-1 take the following actions:

Issue Letter 2809C to the employer and Letter 2813C to the taxpayer.

Input TC 972 AC 146 to IDRS with Disposition Code "NSW" .

Document in the AMS history that the taxpayer is employed by an international organization (specifying name and EIN) and is not subject to withholding on those wages. Close the case.

Update WHCS with letters sent and transaction codes input.

If the taxpayer has other wages which are subject to withholding, follow general case processing procedures.

If the organization is not listed in Exhibit 5.19.11-1 verify the employer's status as an international organization. Generally, this will be the number of the Executive Order covering the international organization. Route the case to the lead who will forward this information to Headquarters for a final determination.

If the taxpayer or employer does not furnish the above verification, follow general case processing procedures.