FATCA - Withholding, reporting for chapter 3, chapter 4 (Instructions for Forms W-8BEN, W-8BEN-E, W-8ECI, W-8EXP, and W-8IMY) 

July 21: The IRS has posted a final version of Instructions for the Requester of Forms W-8BEN, W-8BEN-E, W-8ECI, W-8EXP, and W-8IMY (Rev. July 2014).


Updated versions of Forms W-8BEN, W-8BEN-E, W-8ECI, W-8EXP, and W-8IMY were posted by the IRS earlier this month. Read TaxNewsFlash-United States.

In order to document an account holder or other payee, a withholding agent or a foreign financial institution (FFI) may need to obtain a withholding certificate (i.e., one of the forms in the Form W-8 series) to establish the chapter 4 (FATCA) status of a payee or an account holder or the payee's chapter 3 status, or to validate a payee’s or an account holder’s claim of foreign status when there are U.S. indicia associated with the payee or the account.

New instructions

The 15-page instructions [PDF 186 KB] supplement the instructions for the identified forms and provide, for each form, notes to assist withholding agents and FFIs in validating the forms for purposes of chapters 3 and 4 in addition to outlining the due diligence requirements applicable to withholding agents for establishing a beneficial owner’s foreign status and claim for reduced withholding under an income tax treaty.

The instructions caution that the notes for chapters 3 and 4 are not inclusive of all requirements that may apply to a withholding agent for validating Forms W-8, and note that a withholding agent also must refer to the instructions for each Form W-8 and applicable regulations under chapter 3 and chapter 4 describing the requirements for withholding certificates.

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