IRS Releases Draft of Form W-8BEN with FATCA Changes

by Angela Offerman

Blog-Form W-8BEN

The IRS released modified versions of draft Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding, for individuals and entities. The draft Form, now divided into W-8BEN and W-8BEN-E, is a pre-release, but as expected, it indicates changes to come for foreign financial institutions and withholding agents.

The new form reveals a foreign financial institution employment identification number (FFI-EIN) and a FATCA ID for participating FFIs and deemed-compliant FFIs. In order to protect taxpayer confidentiality, the IRS decided to issue entities the two different numbers to serve different roles. The FFI-EIN will be used for filing purposes and the FATCA ID will be used for public verification purposes. A foreign tax identifying number will now also be required on Form W-8BEN.

According to KPMG, informal conversations with the IRS officials indicate future instructions will clarify how a beneficial owner is to complete the foreign tax identification number line as a resident jurisdiction that does not routinely use tax identification numbers and address a withholding agent’s due diligence concerning this line.

Draft forms W-8IMY are expected to be released by the end of the month.

Tags: , ,
Posted in Tax Tips | No Comments »

Convey provides tax information reporting services and software to businesses to make IRS compliance clear and uncomplicated. U.S. federal tax advice contained in this web site is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter that is contained in this document. (iii) The taxpayer should seek advice based on the taxpayers particular circumstances from an independent tax advisor.