Basic Requirements For Completing IRS Tax Forms W-8 and W-9
The purpose of this document is to provide a checklist of some of the IRS’s basic requirements for completing IRS tax forms (Forms W-8 and W-9) and reduce on-boarding delays. This document does not constitute tax advice, and clients should consult with their own tax advisers to identify and complete the appropriate tax form. IRS tax forms and detailed instructions are available on the IRS website.
Checklist for all forms (mandatory information):
* Be sure you completed the correct tax form.
* Be sure an authorized signatory signed the form.
* Check that the form is dated.
* If one has been issued, provide a US TIN (Taxpayer Identification Number), AND if one has been issued, provide a foreign TIN for your country of tax residence. If you are a non-US individual completing a W-8BEN for an account in the US, provide both a foreign TIN and a date of birth on the form.
Additional checklist for Form W-8 IMY:
- If your Chapter 3 classification on Form W-8 IMY is Non-qualified Intermediary, Non-Withholding Foreign Partnership, Non-Withholding Foreign Trust, and in some circumstances, Qualified Intermediary, provide a
withholding statement with Form W-8 IMY.
• Also provide a valid tax form for each of the underlying partners or beneficial owners listed on the withholding statement.
• Ensure that the sum of percentages on the withholding statement equals 100 percent.
Additional checklist for all Forms W-8:
* Be sure that a Chapter 3 and a Chapter 4 status is checked on the tax form and any additional certifications that correspond to the Chapter 3 and/or Chapter 4 status also are checked and completed. Note that a W-8 ECI does not have a Chapter 4 status.
* If you are completing Form W-8 BEN-E, W-8 ECI or W-8 EXP, check the capacity checkbox under the signature line.
* If your Form W-8 reflects any evidence or indicia of US status — including but not limited to a US mailing or permanent address, US country of formation, US citizenship or place of birth (individuals only) — provide a copy of one of the following pieces of documentary evidence in support of
non-US status with the tax form:
- Certificate of incorporation or tax residence.
• An alternative organizational document for an entity that is not a corporation (e.g., certificate of organization for a partnership or trust).
• A government-issued document that includes a permanent residence address: driver’s license, national identity card or passport (for individuals).
Form types and their intended use
- W-9 — An entity or individual that is a resident in the US for tax purposes.
- W-8 BEN — An individual who is not a tax resident in the US and is the beneficial owner of income. Not relevant for entities.
- W-8 BEN-E — An entity that is not a resident within the US for tax purposes and is the beneficial owner of income.
- W-8 IMY — An entity acting as an Intermediary or flow-through.
- W-8 EXP — A foreign government, international organization, foreign central bank of issue, foreign tax-exempt organization, foreign private foundation, or government of a US possession.
- W-8 ECI — An entity that receives income effectively connected with the conduct of a trade or business in the US.
The Common Reasons Your US Tax Forms Might Be Rejected
1. You used the wrong US tax form.
Go to irs.gov and download the latest version of the form and instructions.
• For an entity incorporated or formed in the US use Form W-9
• For an entity incorporated or formed outside the US use Form W-8
2. Your entity information was incomplete.
For Form W-9:
• Line 1: List the full legal name on your income tax return; for a sole proprietorship, list the business owner’s name
• Line 2: If it differs from that in line 1, also list your business or disregarded entity name
For Form W-8 BEN-E:
• Line 1: List the full name of the entity that is the beneficial owner
• Line 3 or 10: List the full name of any disregarded entity receiving interest payments
3. Your address was incomplete.
For Form W-9:
• Line 5: List your full street address, and
• Line 6: List your city, state and ZIP code
For Form W-8 BEN-E:
• Line 6: List your permanent address including the country
• Line 7: List your mailing address, including the country; if your mailing address is different from line 6 and you list a US address, supply documents supporting your entity’s non-US status
4. Your status information was incomplete.
Complete all the sections of the form needed for your tax status choice. For Form W-8 BEN-E, check the box on line 5 that is most appropriate for your FATCA status. You may need to complete another part of the form.
5. You did not sign or date the form, or provide evidence of Power of Attorney.
For Form W-8 or W-9, ensure the Certification section is signed and dated. Print the signer’s name and enter the date (MM-DD-YYYY) the form was signed; if signed by a Power of Attorney, supply supporting evidence that grants signing authority.
6. You did not check the capacity box.
For Form W-8 BEN-E, check the box under the signature in the Certification section.
7. You did not give withholding statement information.
For a Form W-8 IMY, supply:
• A withholding statement listing the names of all underlying beneficial owners or partners, their tax-related data and information
that allocates payments to each one, and
• A valid Form W-8 or Form W-9 for each underlying owner or partner.
8. Your tax information number (TIN) was incomplete.
The TIN is usually a required field for Form W-8, however, you do not need a TIN for accounts held by:
• Residents in jurisdictions that do not issue TINs or where the US does not have an agreement to share tax information, or
• Governments, international organizations, foreign central banks of issue or residents of a US territory
That’s it. It’s time to eFile 1099 forms online. For more information on how to eFile 1099 forms, W-8, W-9 online, get in touch with our support team @ support@tax1099.com or call us at: +1–877–811–3829
