IRS Finalizes Form W-8BEN-E

The IRS published the long-awaited final version of Form W-8BEN-E on Friday, March 28. The eight-page form will be used by foreign entities to certify their FATCA status to banks, financial institutions and other withholding agents. Each foreign entity that completes the Form must certify its FATCA status from among 31 possible FATCA classifications. These include Participating FFIs, Reporting Model 1 FFIs, Reporting Model 2 FFIs, various categories of registered deemed-compliant FFIs and certified deemed-compliant FFIs, exempt entities, and various categories of non-financial foreign entities ("NFFEs"). Depending on the category chosen, the Form requires the entity to complete one or more of the other 20 parts of the Form. The Form also requires entities that are disregarded entities or branches of an FFI in a country other than the FFI's country of residence to certify whether it is a Limited Branch, a Participating FFI, a Reporting Model 1 FFI, a Reporting Model 2 FFI or a U.S. branch. The instructions to Form W-8BEN-E, which are essential for both foreign entities and their withholding agents to utilize the Form, have not yet been published. The IRS announced last week that the Form would be published prior to completion of the instructions to allow parties to program their systems to match the requirements of the Form and to permit mass publication of the Form by banks and other financial institutions ahead of the July 1, 2014 effective date for FATCA.

Form W-8BEN-E will also be used by a foreign entity to declare its status for income tax withholding under Chapter 3 of the Code and, if applicable, to certify that it is eligible for the benefits of an income tax treaty between the United States and the foreign entity's country of residence.

See: Updated Form W-8BEN-E.See also: Cabinet FATCA Materials (for Cabinet subscribers only).For more information, please contact Daniel Mulcahy and Mark Howe.