A foreign artist paid by a U.S. arts organization for personal services performed in the U.S. is considered to be engaged in a trade or business in the United States, and is required to file Form 1040NR (or Form 1040NR-EZ, if qualified) to report such income. The foreign artist should file a tax return even if the income is exempt from U.S. income tax. Furthermore, filing an income tax return is the only way that the foreign artist might acquire the benefits of any allowable deductions or credits, and thus claim any refund of an overpaid withholding tax. Form 1040NR or Form 1040NR-EZ for a calendar year are due by June 15 of the next year, and should be filed at the following address: Internal Revenue Service Center, Philadelphia, PA 19255. (NOTE: Effective for 2006 tax year and later, the IRS has eliminated the income tax return filing requirement for a nonresident alien performing personal services as an employee in the United States and earning wages less than the personal exemption amount ($3300 in 2006 tax year). This exception does not apply if the employee is seeking a refund of U.S. tax, has a U.S. income tax liability not satisfied by NRA withholding, or has income either wholly or partially exempt by reason of an income tax treaty or the Code.)

A foreign artist performing as an independent contractor would be allowed ordinary and necessary business and travel expenses incurred in earning the U.S. income. These expenses would be claimed on a Schedule C (or Schedule C-EZ) as an attachment to the filed Form 1040NR tax return. A nonresident alien, unlike a U.S citizen or resident, is not subject to self-employment tax with respect to business income earned as an independent contractor.