U.S.A.: FATCA: IRS releases new draft W-8BEN and W9 forms
The U.S. Internal Revenue Service (IRS) has released new drafts of the W-8BEN and W9 form.
The draft W-8BEN form, which is for non-US individuals, contains two significant changes.
The new line 8 requires the beneficial owner to provide the date of birth if no foreign tax identification number is provided. This will be needed by the U.S. to be able to report under IGA reciprocal model 1 under FATCA.
There is an additional requirement as well for the beneficial owner to promise that they will provide a new form within 30 days of when any certification on the form becomes incorrect.
This statement was already in the previous draft form but did not specify any time period.
No instructions have been published yet by the IRS, you will be informed as soon as they are available.
The draft Form W-9 (which includes instructions) replaces the exempt payee checkbox with space for two new codes: an ‘exempt payee code’ for exempt recipient status for 1099 reporting purposes and an ‘exemption from FATCA reporting code’. The latter code is needed for a US entity that opens a foreign account, but is not subject to FATCA reporting because it is not a ‘US specified person’.
Please refer to the form instructions to see the different values available for each code.
The above information is not intended to be exhaustive. We will continue to monitor the IRS and commentator publications and will provide customers with further information in due course.
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