May 17, 2013: Updated Draft of Form W-8BEN for Individuals
Foreign Account Tax Compliance Act (FATCA)
Updated draft of form W-8BEN for individuals
On May 17, 3013, the IRS has released another draft of the Form W-8BEN for individuals. In addition to the changes included in the original draft released last year (see the attached 2012 annotated version), the updated draft adds (i) a date of birth field and (ii) language in the “Certification” section requiring the signatory to agree to submit a new form within thirty days of any change that would make any certification on the form incorrect. The addition of the date of birth field is an expected outcome of the U.S. entering into reciprocal Intergovernmental Agreements (“IGAs”) with other countries to implement FATCA. In the reciprocal IGAs, the U.S. agrees to provide certain income information collected on residents of the other jurisdiction that have accounts in U.S. financial institutions. The date of birth information is required if the individual does not have a foreign tax identifying number and the U.S. will use the information in reports sent to certain jurisdictions that have entered into the reciprocal IGA. The thirty day notification for changes that affect the validity of any certification on the form is also not a surprise given that the final regulations contained the thirty day requirement.
Unfortunately, the more complicated Forms W-8BEN-E and W-8IMY have yet to be released, but the IRS has publically stated that they should be released in the coming weeks. Industry has been pushing for the new forms to be released given the short amount time left for FATCA to become effective and the amount of work necessary to update systems, processes, and procedures to accommodate the new forms. Hopefully this is good sign that the wait is almost over.
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