As financial advisors, our team wants to keep you informed of the latest tax and accounting news. With this in mind, please see below for further information on updates to Form W-8Ben and Form W-9.
Form W-9 Revisions
Some recent tax changes have led the IRS to revise Form W-9, Request for Taxpayer Identification Number and Certification, as well as its accompanying instructions. Changes to FATCA and payment card and third-party network transactions prompted the updates.
According to an introduction to the instructions, the IRS has revised both the instructions and the form to expand the Exemptions box on the front of the form to include entry for the Exempt payee code (if any) and Exemption from FATCA Reporting Code (if any). Also, the IRS has expanded the Certification section in Part II to include certification of an exemption from FATCA reporting.
The IRS has also added references to payments made in settlement of payment card and third-party network transactions to the Purpose of Form section of Form W-9. More information is available in the Instructions for Form 1099-K.
Tax preparers can consult an IRS page devoted to Form W-9. The IRS said it will update it with any future developments regarding the form or its instructions.
For more information on this form, visit www.nysscpa.org.
Form W-8BEN Revisions
Form W-8BEN, as in use for 2013 and previous years, was completed by both individual and entity beneficial owners of the income to which the form related. The Form W-8BEN in use for 2013 has a revision date of 2006. This version of the form can be found here: www.irs.gov in the Forms and Publications section, under the “Prior Year Forms” tab, by searching the cumulative list of forms posted there for the term “Form W-8.” It does not reflect the changes made by the Foreign Account Tax Compliance Act (FATCA).
For the first time in 2014, the Form W-8BEN has been split into two forms. The new 2014 Form W-8BEN (revision date 2014) is for use solely by individuals. It is posted under both the “Current Year Forms” tab and the “Prior Year Forms” tab. A new Form W-8BEN-E for use by entities for 2014 (revision date 2014) is posted under both the “Current Year Forms” tab and the “Prior Year Forms” tab.
The Form W-8BEN-E Instructions have not been completed yet. The instructions will be posted to the IRS Forms and Publications Website as soon as they are completed and available.
Still Have Questions?
If you need help understanding the revisions made to Form W-9 and Form W-8BEN, or have other tax planning questions, contact the experienced CPAs at Fordham & Co today to schedule a consultation.