In recent years, record numbers of foreign students have enrolled in graduate and undergraduate programs at U.S. colleges and universities. During the 2012-2013 academic year, their numbers topped 800,000—the seventh consecutive annual increase. Roughly two-thirds of such visiting students pay their own way or are otherwise subsidized from abroad, but their growing numbers mean that U.S. institutions will be awarding scholarships, grants, prizes and other forms of non-governmental assistance to foreign nationals with increasing frequency, and with all of the attendant tax compliance obligations that such payments entail.

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Reprinted with permission:  “Scholarships, Grants, and Foreign Students: Tax Compliance Tips for U.S. Institutions,” Dahlia B. Doumar and Carl A. Merino, Taxation of Exempts, Volume 26 / Issue 1, Copyright © 2014 Thomson/RIA.