IRS Issues Instructions for Requestors of Form W-8s under FATCA

The IRS issued long-awaited instructions to withholding agents that request W-8s (including W-8BENs and W-8BEN-Es) from foreign persons.The Form W-8s have been revised substantially in recent months to reflect the due diligence requirements imposed by FATCA, including the obligation of most foreign persons to declare their status under FATCA. Instructions to the Forms themselves were issued last month. However, withholding agents have been waiting for instructions on which form to request from which type of taxpayer, as well as technical explanations of the information that withholding agents need to collect on these forms and guidance to assist such withholding agents in validating the forms.

The topics covered in the instructions include: "Who is a Withholding Agent?"; "Responsibilities of a Withholding Agent under Both Income Tax Withholding and FATCA"; "When to Request a W-8 and Which Type of W-8 to Request"; when substitute W-8s can be used; and the requirements that such substitute forms must satisfy.

See: Revised Form W-8 Instructions. See also: FATCA Specialty Page (available to Cabinet subscribers only).For more information, please contact Daniel Mulcahy and Mark Howe.