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