Tag Archive for W8-BEN

PATH Act ITIN Renewal Requirements: All ITINs issued before 2013

TaxConnections Member Larry Stolberg

On December 18th, President Obama, signed H.R. 2029, the tax (the “Protecting Americans from Tax Hikes Act of 2015”) and spending bills (Consolidated Appropriations Act, 2016) to fund the government for its 2016 fiscal year.

The PATH Act ITIN renewal requirements: individuals who were issued Individual Taxpayer Identification Numbers (ITINs) before 2013 to renew their ITINs on a staggered schedule between 2017 and 2020 either in person before an IRS employee or a certified acceptance agent or by mail under procedures to be developed. Documentation proving identity, foreign status and residency is required for renewal. The Act also provides that an ITIN will expire if an individual fails to file a tax return for three consecutive years.

Similar rules apply to individuals residing outside the United States such as Canadians who applied for ITINS and file U.S. tax returns reporting their net rental income from U.S. real estate. It’s important to keep in mind that the

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Canadians Selling or Providing Services to the United States

Larry Stolberg - 11-5-15

If you have accounts receivables from a US entity, you may get the request for a W8-BEN or a W8-Ben-E form. Without this form, the payor of your accounts receivable will withhold a non-resident tax. The only way to get the refund of the tax is to file a US non-resident return, either a 1040NR for  individuals or a 1120F for corporations. The waiver form indicates to the payor that you are exempt from US taxation under the Canada/U.S. tax treaty.

Note that if you are considered to be carrying on business in the United States, then the waiver may not apply if it is  considered that you also have a permanent establishment in the United States by virtue of Article V of the treaty. In this regard you should obtain professional advice on Read more