Instructions For Forms 8804, 8805, And 8813 2005 (Page 2 of 8) in pdf

Requirements for certificates to be

Form 8813

Regulations section 1.1446-1(c) for

valid. Generally, the validity of a Form

additional information.

File on or before the 15th day of the 4th,

W-9 is determined under section 3406

6th, 9th, and 12th months of the

Certification of Nonforeign

and Regulations section 31.3406(h)-3(e).

partnership’s tax year for U.S. income tax

Status

A Form W-8 is only valid if:

purposes.

•

Its validity period has not expired,

In general, a partnership may determine

•

The partner submitting the form has

Where To File

that a partner is not a foreign person by

signed it under penalties of perjury, and

obtaining a Form W-9 from the partner. A

•

File Forms 8804, 8805, and 8813 with:

It contains all the required information.

partnership that has obtained this

Internal Revenue Service Center,

See Regulations section

certification may rely on it to establish the

Philadelphia, PA 19255.

1.1446-1(c)(2)(iv) for more details.

nonforeign status of a partner. See Effect

How long to keep the certifications. A

of certification below.

Taxpayer Identifying

partnership or nominee who has

Form of certification. Generally, a

Number

responsibility for paying section 1446

partnership may determine a partner’s

withholding tax must retain each

To insure proper crediting of the

foreign or nonforeign status by obtaining

withholding certificate, statement, and

withholding tax when reporting to the IRS,

one of the following withholding

other information received from its direct

a partnership must provide a U.S.

certificates from the partner.

and indirect partners for as long as it may

•

taxpayer identifying number (TIN) for

Form W-8BEN, Certificate of Foreign

be relevant to the determination of the

each foreign partner. The partnership

Status of Beneficial Owner for United

withholding agent’s section 1446 tax

should notify any of its foreign partners

States Tax Withholding.

liability under section 1461 and the

•

without such a number of the necessity of

W-8ECI, Certificate of Foreign Person’s

regulations thereunder.

obtaining a U.S. identifying number. An

Claim That Income is Effectively

individual’s identifying number is the

Use of Means Other Than

Connected With the Conduct of a Trade

individual’s social security number (SSN)

Certification

or Business in the United States.

•

or individual taxpayer identification

W-8EXP, Certificate of Foreign

A partnership is not required to obtain a

number (ITIN). Any other partner’s

Government or Other Foreign

Form W-9. It may rely on other means to

identifying number is its U.S. employer

Organization for United States Tax

learn the nonforeign status of the partner.

identification number (EIN).

Withholding.

But if the partnership relies on other

•

Certain aliens who do not have and

W-8IMY, Certificate of Foreign

means and erroneously determines that

are not eligible to get an SSN may apply

Intermediary, Foreign Flow-Through

the partner was not a foreign person, the

for an ITIN on Form W-7, Application for

Entity, or Certain U.S. Branches for

partnership will be held liable for payment

IRS Individual Taxpayer Identification

United States Tax Withholding.

of the tax, any applicable penalties, and

•

Number. The application is also available

Form W-9, Request for Taxpayer

interest. A partnership is not required to

in Spanish.

Identification Number and Certification.

rely on other means to determine the

•

An acceptable substitute form (as

nonforeign status of a partner and may

Requirement To Make

described in Regulations section

demand a Form W-9. If a certification is

1.1446-1(c)(5)).

Withholding Tax Payments

not provided, the partnership may

•

A statement required from a domestic

withhold tax under section 1446 of the

A foreign or domestic partnership that has

grantor trust (as described in Regulations

Code and will be considered for purposes

effectively connected taxable income

section 1.1446-1(c)(2)(ii)(E)) with the

of section 1461 through section 1463, to

allocable to a foreign partner must pay a

necessary documentation required for the

have been required to withhold such tax.

withholding tax equal to the applicable

trust and the grantor.

percentage of the effectively connected

Effectively Connected

Effect of certification. Generally, a

taxable income that is allocable to its

partnership that has obtained a

Taxable Income (ECTI)

foreign partners. However, this

withholding certificate (for example, a

requirement does not apply to a

Form W-8 or W-9) according to the rules

partnership treated as a corporation

Definition

in these instructions may rely on the

under the general rule of section 7704(a).

“Effectively connected taxable income” is

certification to determine the applicable

Effectively connected taxable income is

the excess of the gross income of the

percentage to apply to the partner’s

defined on below. Applicable percentage

partnership that is effectively connected

allocable share of effectively connected

is defined on page 3.

under section 864(c), or treated as

taxable income or that the partner is not

effectively connected with the conduct of

Withholding Agents

subject to withholding. A partnership may

a U.S. trade or business, over the

not rely on a withholding certificate if it

For ease of reference, these instructions

allowable deductions that are connected

knows or has reason to know that any

refer to various requirements applicable

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

information provided on the withholding

to withholding agents as requirements

Guide for Aliens, for detailed instructions

certificate is incorrect or unreliable, and

applicable to partnerships themselves.

regarding the computation of effectively

based on that information the partnership

connected taxable income. For purposes

should pay more section 1446 withholding

Determining If a Partner Is

of these instructions, figure this income

tax. Under those circumstances, the

with the following statutory adjustments:

a Foreign Person

certificate is not valid.

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

A partnership must determine if any

The partnership will not be subject to

2. The partnership is allowed a

partner is a foreign person subject to

penalties for its failure to pay the section

deduction for depletion of oil and gas

section 1446. Under section 1446, a

1446 withholding tax prior to the date that

wells, but the amount of the deduction

foreign person is a nonresident alien

it knows or has reason to know that the

must be determined without regard to

individual, foreign corporation, foreign

certificate is not valid. However, the

sections 613 and 613A.

partnership, or foreign trust or estate.

partnership is fully liable for section 1446

3. The partnership may not take into

A partnership may determine a

withholding tax for the year, as well as

account items of income, gain, loss, or

partner’s foreign or nonforeign status by

penalties and interest, starting with the

deduction allocable to any partner that is

relying on a W-8 form (for example, Form

installment period or Form 8804 filing

not a foreign partner.

W-8BEN), Form W-9, an acceptable

period during which it knows or has

substitute form, or by other means. See

reason to know that the certificate is not

See Regulations section 1.1446-2 for

Form of certification and Use of Means

valid. See Regulations section

additional adjustments that may be

Other Than Certification below. Also, see

1.1446-1(c)(2)(iii).

required.

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Instructions for Forms 8804, 8805, and 8813

Instructions For Forms 8804, 8805, And 8813 2005 Page 2

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