Instructions For Forms 8804, 8805, And 8813

status by relying on a certification of

2. State the partner’s name, U.S.

section 1446 withholding tax that were

nonforeign status or by any other means.

taxpayer identifying number, and home

due prior to the time it learned that the

address (for individuals) or office address

information it properly relied on was false.

Certification of Nonforeign

(for entities).

Status

For a widely held partnership, the

3. State that the partner will notify the

documentation used to determine the

In general, a partnership may determine

partnership within 60 days of a change to

nonforeign status of a partner must be

that a partner is not a foreign person by

foreign status.

kept until the end of the 5th tax year

obtaining a certification of nonforeign

4. Be signed by or for the partner

following the last tax year in which the

status from the partner. A partnership that

under penalties of perjury.

partnership properly relied on the

has obtained this certification may rely on

A certification of nonforeign status

documentation.

it to establish the nonforeign status of a

must be verified as true and signed under

partner. See below.

penalties of perjury by a responsible

Use of Means Other Than

Effect of certification. Generally, a

corporate officer for a corporation that is a

Certification

partnership that has obtained a

partner, by a general partner for a

certification of nonforeign status

A partnership is not required to obtain a

partnership that is a partner, and by a

according to the rules in these

certification of nonforeign status. It may

trustee, executor, or equivalent fiduciary

instructions may rely on the certification to

rely on other means to learn the

for a trust or estate that is a partner. A

determine that the partner is not subject

nonforeign status of the partner. But if the

certification of nonforeign status may also

to withholding. If a partnership relies in

partnership relies on other means and

be signed by a person authorized under a

good faith on the certification, but it is

erroneously determines that the partner

properly executed power of attorney,

later determined that the certification was

was not a foreign person, the partnership

provided the power of attorney

false, the partnership will not be held

will be held liable for payment of the tax,

accompanies the certification.

liable for payment of the tax, any

any applicable penalties, and interest. A

applicable penalties, or interest. A

How long to keep the certifications. A

partnership is not required to rely on other

certification that satisfies the

partnership must keep a certification of

means to determine the nonforeign status

requirements of these instructions will

nonforeign status until the end of the 5th

of a partner and may demand a

also satisfy the requirements for a

tax year after the last tax year in which

certification of nonforeign status.

certificate of nonforeign status under

the partnership relied on the certification.

section 1445.

Special rule for widely held

Effectively Connected

Once a partnership learns that the

partnership. In addition to relying on a

Taxable Income

certification is false, it will no longer be

certification of nonforeign status, a widely

entitled to rely on that certification. For

held partnership (a partnership that has

this purpose, the knowledge of any

Definition

more than 200 partners, including a

general partner will be imputed to the

publicly traded partnership) may rely on

“Effectively connected taxable income” is

partnership to cause a withholding

the information provided to it by partners

the excess of the gross income of the

liability. The knowledge of one of its

on a Form W-8BEN, Certificate of

partnership that is effectively connected

limited partners will not be imputed to a

Foreign Status of Beneficial Owner for

under section 864(c), or treated as

partnership based solely on that partner’s

United States Tax Withholding, or Form

effectively connected with the conduct of

status as a limited partner. For a limited

W-9, Request for Taxpayer Identification

a U.S. trade or business, over the

liability company or other entity classified

Number and Certification.

allowable deductions that are connected

as a partnership for Federal income tax

to such income. See Pub. 519, U.S. Tax

purposes, any member with authority to

Also, a widely held partnership may

Guide for Aliens, for detailed instructions

manage or bind the entity is treated as a

rely on a certification under penalties of

regarding the computation of effectively

general partner.

perjury from a nominee about the

connected taxable income. For purposes

nonforeign status of partners owning

Also, the partnership will be liable

of the instructions, figure this income with

partnership interests through the

under section 1461 for any failure to pay

the following adjustments:

nominee. No particular form is required

the withholding tax under section 1446 for

1. Section 703(a)(1) does not apply.

for this certification, but it should identify

the tax year in which it learned that the

2. The partnership is allowed a

the partner for whom the certification is

certification is false. However, the

deduction for depletion of oil and gas

made and indicate the basis for the

partnership will not be liable for penalties

wells, determined without regard to

certification. When making a certification,

for failure to make timely payments of

sections 613 and 613A.

a nominee may also rely on a certification

installments of section 1446 withholding

3. The partnership may not take into

of nonforeign status or on information

tax that were due prior to the time it

account items of income, gain, loss, or

provided by Forms W-8BEN or W-9. A

learned that the certification was false.

deduction allocable to any partner that is

nominee and a partnership may not rely

Duration of certification. A partnership

not a foreign partner.

on any of those forms after the date that

may rely on a partner’s certification of

the forms must be re-executed, nor on a

4. The partnership may not deduct

nonforeign status until the earliest of the

certification of nonforeign status based on

any net operating loss carryovers or

following:

an election under section 897(i).

charitable contributions.

1. The end of the 3rd year after the

A widely held partnership that relies in

A partnership’s effectively connected

tax year of the partnership during which

good faith on a certification of nonforeign

taxable income includes partnership

the certification was obtained.

status or Forms W-8BEN or W-9 in

income subject to a partner’s election

2. The date the partnership receives

under section 871(d) or 882(d) (election

notice from the partner that it has become

determining nonforeign status will not be

to treat real property income as income

a foreign person.

held liable for payment of the tax, any

connected with a U.S. business). It also

3. The date the partnership learns that

applicable penalties, or interest. However,

includes any partnership income treated

the partner is, or has become, a foreign

if a partnership learns that any of these

as effectively connected with the conduct

person.

forms contain false information, it may no

of a U.S. trade or business under section

longer rely on the form and will be liable

Form of certification. No particular form

897 (disposition of investment in U.S. real

under section 1461 for any failure to pay

nor any particular language is required for

property), and other items of partnership

the withholding tax under section 1446 for

certification of nonforeign status.

income treated as effectively connected

the tax year in which it obtained that

However, the certification must:

under other provisions of the Internal

knowledge. The partnership will not be

Revenue Code, regardless of whether

1. State that the partner is not a

liable for penalties for failure to make

those amounts are taxable to the partner.

foreign person.

timely payments of installments of the

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Instructions for Forms 8804, 8805, and 8813

Instructions For Forms 8804, 8805, And 8813 - 2001 Page 2

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