Tag Archive for Form W-8BEN

Form W-8BEN And What It’s Used For

Non-U.S. persons must pay U.S. tax on certain kinds of income they receive from U.S. sources. Typically, the income is taxed at a flat rate of 30%. The only way for this tax to be alleviated is if an income tax treaty exists between the U.S. and another country and that treaty authorizes a lower rate of tax.

You might be wondering how the United States collects this tax. For example, the non-U.S. person might decide not to pay it, thus thumbing his nose at the government. In that case, does the U.S. government dispatch secret service agents to all four corners of the globe to track down the tax evader, who may owe only a small amount of tax? Of course not. The U.S. knows all too well that it would be a waste of time and resources to take on the role of a bounty hunter. Read more

IRS Issues Instructions For Requesters of Forms W-8 Under FATCA

The Internal Revenue Service issued instructions July 21 for U.S. withholding agents who must request a series of Forms W-8 under the Foreign Account Tax Compliance Act.

The instructions have been deemed critical for agents trying to comply with FATCA, which requires foreign financial institutions to disclose U.S.-owned accounts to the IRS or possibly face a 30 percent withholding tax on their U.S.-source income. U.S. withholding agents must determine whether, when and how much to withhold.

The form, Instructions for the Requester of Forms W-8BEN, W-8BEN-E, W-8ECI, W-8EXP, and W-8IMY, is viewed as an essential part of that work.  These instructions supplement the instructions for the following forms and provide, for each form, notes to assist Read more

IRS Released Revised Form W-8BEN-E For Entities

Earlier, we posted “IRS Revised Form W-8BEN For Individuals – What Form Do You Use For Entities?” Where we discussed that the Internal Revenue Service (IRS) had released revised IRS Form W-8BEN (Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding (Individuals)).

The IRS Instructions for Form W-8BEN provided that Form W-8BEN IRS Form W-8BEN is now used exclusively by individuals and Entities should use IRS Form W-8BEN-E which was still in draft form.

We advised that taxpayers should use the old W-8BEN for entities, until the new one (coming out soon) for entities, W-8BEN-E comes out. Well the new Form W-8BEN-E has Read more

Act Now! Revised FATCA Final Regs And 2014 Forms Now Available!

The following FATCA Forms and Instructions for 2014 are now available on the IRS.GOV Forms and Publications Website:

• Form 1042

• Form 8966

• Form W-8BEN

• Instructions to Form W-8BEN

• Form W-8ECI Read more

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