Tax & Accounting Blog

IRS Releases Drafts of W-9, W-8BEN and W-8BEN-E Forms

1042-S, 1099, ONESOURCE, ONESOURCE Nonresident Alien Taxation, Tax Information Reporting, Trust Tax, W-8 & W-9 Foreign Reporting May 23, 2013

The IRS has released their initial draft of the new Form W-9 as well as the second drafts of the W-8BEN and W8-BEN-E forms. It is helpful to look at these draft forms now and determine how your organization will go about implementing their use when the final versions are issued. There are implementation deadlines beyond which only the new forms may be relied upon for new accounts and where new documentation is required due to a change in the beneficial owner’s information and the applicability of FATCA compliance.

Draft Form W-9, Request for Taxpayer Identification Number and Certification

Review the draft of the W-9 form. Note the addition of exemption codes – separate sets of codes to indicate exempt status on the Form 1099 tax reporting side, and FATCA exempt status – and the related addition to the certification statements to which the signer attests in the jurat section at the bottom of the form. The W-9 will be five pages long including the instructions, and it will be more important than ever to furnish the entire five pages to your payee, since the captions on the W-9 specifically tell the person filling out the form to see instructions.

Draft W-8BEN-E and W-8BEN Forms
The IRS released the second draft of the Form W-8BEN-E, Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities). The W-8BEN-E allows entities completing the form to certify as to its status as a beneficial owner or payee of a payment for purposes of chapters 3 and 61 of the Code, as well as to its status under chapter 4 of the Code as either a payee or as an account holder of a foreign financial institution.

– Part I is used by an entity to indicate both its chapter 3 status and its chapter 4 status.
– Part II is to be completed by only certain foreign financial institutions.
– Part III is to be completed only when a beneficial owner of a payment seeks to claim a reduced rate of withholding under an applicable treaty.
– Each of the remaining Parts of the form (Parts IV through XXV) includes specific certifications relating to the chapter 4 status identified by the entity in Part I. For this portion of the form, the entity is required to complete only that Part covering its applicable chapter 4 status.

Also released this week was the second draft of the Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Reporting and Withholding (Individuals), will be used to document the foreign status of individual persons only.

Editor’s Notes:
Marianne Couch has authored a number of blog posts on form changes related to FATCA regulations. Click here to view her post archive.

Thomson Reuters offers a wide-range of educational webcasts on tax information reporting and nonresident alien taxation issues. Visit our Tax Information Reporting and Nonresident Alien Taxation webcast pages to learn more and register for an upcoming webcast.

Visit www.cokala.com to learn how COKALA Tax Information Reporting can help your organization.