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.
If you have any questions regarding Form W-8BEN, contact the Tax Lawyers at Marini & Associates, P.A.
for a FREE Tax Consultation at www.TaxAid.us or www.TaxLaw.ms or Toll Free at 888-8TaxAid (888 882-9243).
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.
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