Global IRW Newsbrief: Draft FATCA-related IRS forms: A snapshot of those released so far

Preparation for compliance with FATCA is well underway and a key element will be the various forms used to communicate between withholding agents, their payees, and the Internal Revenue Service (IRS). As important FATCA compliance dates draw near, the IRS has recently released drafts of certain FATCA-related forms. These forms are important because they will impact both existing US information reporting requirements and FATCA compliance going forward. Specifically, they will facilitate the identification of the payee’s FATCA classification, registration with the IRS, and the year-end reporting requirements. Many of these forms are already currently used to facilitate identification of payees and reporting under Chapter 3, but are being revised to accommodate the FATCA requirements. The IRS forms revised and released in draft more recently include:

  • Form W-9 — Request for Taxpayer Identification Number and Certification
  • Form W-8BEN — Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals)
  • Form W-8BEN-E — Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities)
  • Form W-8EXP — Certificate of Foreign Government or Other Foreign Organization for United States Tax Withholding and Reporting
  • Form 8957 — Foreign Account Tax Compliance Act (FATCA) Registration
  • Form 1042 — Annual Withholding Tax Return for U.S. Source Income of Foreign Persons
  • Form 1042-S — Foreign Person’s U.S. Source Income Subject to Withholding

Of note, the following draft FATCA-related IRS forms have been issued in draft within the last year:

  • Forms W-8ECI — Certificate of Foreign Person’s Claim That Income Is Effectively Connected With the Conduct of a Trade or Business in the United States
  • W-8IMY — Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U.S. Branches for United States Tax Withholding