Thread: w-8
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Old 07-03-2007, 10:54 AM
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mikah2k mikah2k is offline
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Join Date: Mar 2005
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w-8

From http://sedm.org/Forms/Tax/W-8BEN/AboutIRSFormW-8BEN.htm

Quote:
Originally Posted by IRS Publication 515, year 2000, p. 3
"Foreign persons who provide Form W–8BEN, Form W–8ECI, or Form W–8EXP (or applicable documentary evidence) are exempt from backup withholding and Form 1099 reporting."


See the current irs publication 515 on page 4 for similar wording.
http://www.irs.gov/pub/irs-pdf/p515.pdf

Do not use the presumptuous w-8ben from the irs.gov website. Use a modified version, such as this one.

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The first url contains the following
Quote:
However, the IRS form W-8BEN, unlike the W-4, has many appropriate uses. It can be used:
  • To stop "employment" withholding. When this form is submitted, the employer must stop ALL withholding, including Medicare, So******t Security, and FICA, and Federal Income Tax.
  • Change your legal "domicile" (OFFSITE LINK) to a place outside the jurisdiction of the federal government and the tax laws. See block 4 of the W-8BEN form. Click here for an article on this important subject.
  • Open tax-free accounts at financial institutions, all without a "Taxpayer Identification Number" (OFFSITE LINK)
  • Change your status with the IRS to that of a "nontaxpayer" (OFFSITE LINK) .
  • To Stop W-2 earnings reports to the Federal Government.
  • To avoid the W-4 Exempt penalty of $500. There is no regulation that allows the submitter of a W-8BEN to be penalized for submitting it, even if it is wrong.

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In addition, I have found a bank that uses its own homemade w-8, not the irs w-8ben, for non-u.s. citizens to open up accounts without taxpayer id numbers or SSNs.

Conclusion: If a bank can and does create and use its own w-8 to certify nontaxpayer status, you or sedm can create or modify a w-8ben to certify the same.
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