FATCA - Final version of instructions for Form W-8IMY 

June 19: The IRS has posted the final version of the instructions for Form W-8IMY, Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U.S. Branches for United States Tax Withholding (Rev. June 2014).

The 16-page Form W-8IMY instructions [PDF 231 KB] explain that Form W-8IMY—along with Forms W-8BEN, W-8BEN-E, W-8ECI, and W-8EXP—all reflect the withholding and documentation requirements of Chapter 4 (also referred to as FATCA for the Foreign Account Tax Compliance Act).

  • Under Chapter 4, foreign financial institutions (FFIs) that are participating FFIs—and certain registered deemed-compliant FFIs—are generally required to identify their U.S. account holders, regardless of whether a payment subject to withholding under Chapter 3 or Chapter 4 is made to the account.
  • U.S. withholding agents and FFIs will be required to begin withholding under FATCA (Chapter 4) on certain payments beginning on July 1, 2014.
  • Form W-8IMY is to be used by an intermediary or flow-through entity to certify as to its status under both Chapters 3 and 4 and to address special provisions for intermediaries and flow-through entities that are FFIs for FATCA purposes.
  • In general, intermediaries and flow-through entities receiving reportable amounts will be required to provide both their Chapter 3 status and the Chapter 3 status of persons for whom they receive such payments.
  • An intermediary or flow-through entity receiving a withholdable payment will be required to provide its Chapter 4 status and the Chapter 4 status of persons for whom it receives a withholdable payment when required for Chapter 4 purposes. Failure to provide this information may subject the intermediary or flow-through entity to withholding at a 30% rate.

The IRS previously released the final version of Form W-8IMY [PDF 258 KB]. The form includes sections for entities to complete—including a section for branches of FFIs and disregarded entities—and reflects changes under Chapter 4.

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