We have studied nondipolar effects in resonance-enhanced multiphoton ionization of Xe and have observed an azimuthal dependence of the photoelectron angular distribution on a quadrupole resonance, as well as a very large asymmetry with respect to the direction of the laser propagation close to the resonance, which is understood in terms of interference between dipole- and quadrupole-allowed ionization channels. The observed asymmetry in the photoelectron angular distribution provides insight into the ejection of slow photoelectrons near an ionization threshold.