IRS Releases New Versions of W-8 Forms for Taxpayers to Comply with FATCA – Los Angeles Income Tax Planning & Income Tax Litigation Attorney Bruce Givner

by Bruce Givner on March 19, 2014

For those citizens trying to comply with the Foreign Account Tax Compliance Act, the IRS has just released the final versions of the W-8 forms they need.

The Foreign Account Tax Compliance Act, or FATCA, was crafted so as to enable the Internal Revenue Service to obtain information regarding the income of Americans from financial institutions outside the US. Specifically, FATCA obligates non-US financial institutions to register with the IRS and report the details of financial accounts held by specified US citizens as well as particular non-US entities in which a specified US citizen has a controlling interest, barring certain exceptions. Affected financial institutions that do not report accounts owned by US taxpayers can be subject to a 30% withholding tax on some US-sourced payments made to them.

On March 4, an IRS spokesman stated that the agency had made available final versions of the following documents:

  1. Form W-8ECI – the Certificate of Foreign Person’s Claim that Income Is Effectively Connected With the Conduct of a Trade or Business in the United States,
  2. Form W-8BEN – the Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals),
  3. Instructions for Form W-8BEN

While practitioners are pleased to finally receive the new forms, essential for compliance with FATCA, more remains to be done. For example, the W-8BEN is designed exclusively to be completed by individuals. A new W-8BEN designed for entities remains to be released. Similarly, new versions of the W-8IMY (Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain US Branches for United States Tax Withholding) and W-8EXP (Certificate of Foreign Government or Other Foreign Organization for United States Tax Withholding) are still being awaited.

Givner & Kaye focuses on sophisticated income tax planning and compliance, tax litigation and procedure, estate planning, and asset protection plans for individuals and businesses in Beverly Hills, Calabasas, West Los Angeles, Hollywood, and other areas of Los Angeles, Orange, Ventura, San Bernardino, Riverside and Santa Barbara Counties. Call Los Angeles Estate Planning and Asset Protection Plan Attorneys Givner & Kaye at (310) 207-8008 today.

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