UNIVERSITY OF VIRGINIA
          FINANCIAL AND ADMINISTRATIVE PROCEDURES MANUAL



TITLE:  COMPLETING VIRGINIA DEPARTMENT OF        PROCEDURE: 12-62
        TAXATION FORM VA-4

                                                                  
Policy Reference:              XII.F.3, also IV.G.2, VI.A.5

Form:                          Form VA-4, Personal Exemption
                               Worksheet

Obtain Blank Forms From:       Forms packet, page 12.62.2,
                               or Payroll Department.  Make copies
                               as needed.

Forward Completed Forms To:    Payroll, Carruthers Hall, or
                               Foreign National Tax Specialist,
                               Carruthers Hall

Purpose

To provide foreign national individuals information on how to claim
proper withholdings for Virginia State Tax purposes.

Instructions

For "Green" card resident aliens or resident aliens by virtue of
the Substantial Presence Test--follow instructions on the VA-4
Form, as would a U.S. citizen.   

For nonresident aliens, follow instructions below:

1.   Please ignore the Personal Exemption Worksheet.

2.   On the VA-4, enter one's Social Security Number, Name, Street
     Address, City, State or Zip code (local address).

3.   On Line 1, enter the number of exemptions entered on line 5 of
     the Federal W-4 form.  See also Procedure 12-61.

4.   Leave line 2 blank.

5.   Leave Line 3 blank.

6.   Sign and date the VA-4 where indicated.

7.    DO NOT claim "Exempt" withholding status on line 3,
      regardless of how much the foreign national is making.  

 NOTE: To claim treaty benefits (to claim "exempt" on the VA-4),
 nonresident aliens must come in-person to the Payroll Department
 (or Foreign National Tax Office), Carruthers Hall.  

     To claim "exempt" on the VA-4 does not, by itself, guarantee
     that the individual will receive tax treaty benefits.  Doing
     so can result in underwithholding of taxes, and a tax
     liability at the end of the year.  

     NOTE: The IRS has notified the University Payroll department
     that if it discovers an individual has unlawfully claimed
     "Exempt" on the W-4, Payroll may then withhold the maximum
     amount of taxes from the individual's payments.  This means
     that the individual will be taxed at Single rates, with zero
     allowances.
See also Procedure 12-60, (for both sides
of form).

See also Procedure 12-61, "Completing IRS
Form W-4."

See also Procedure 12-63, "Completing IRS
Form 8233."

See also Procedure 12-64, "Completing IRS
Form 1078."
                                                                   
ISSUED BY:                                                 06/23/97
Assistant Comptroller for 
Accounting Operations          12.62.2