Instructions For The Requester Of Forms W-8ben, W-8ben-E, W-8eci, W-8exp, And W-8imy

chapter 3 or a withholdable payment to the foreign person

Generally, a foreign person that is a partner in a

(or to its agent) must withhold. See the Instructions for

partnership that submits a Form W-8 for purposes of

Form 1042, Annual Withholding Tax Return for U.S.

section 1441 or 1442 will satisfy the documentation

Source Income of Foreign Persons, and Form 1042-S,

requirements under section 1446. However, in some

Foreign Person's U.S. Source Income Subject to

cases the documentation requirements for sections 1441

Withholding, for return filing and information reporting

and 1442 do not match the documentation requirements

obligations with respect to payments made to foreign

of section 1446. For example, a partner may generally

persons.

submit Form W-8BEN-E to establish itself as a foreign

person for purposes of section 1446, but a foreign

For ECTI allocable to a foreign partner, the partnership

partnership or foreign grantor trust must submit Form

is generally the withholding agent and must file Form

W-8IMY and accompanying documentation as provided

8804, Annual Return for Partnership Withholding Tax

by Regulations sections 1.1446-1 through 1.1446-6. Also,

(Section 1446), Form 8805, Foreign Partner's Information

the owner of a disregarded entity, rather than the entity

Statement of Section 1446 Withholding Tax, and Form

itself, must submit the appropriate Form W-8 for purposes

8813, Partnership Withholding Tax Payment Voucher

of section 1446.

(Section 1446).

Failure to Obtain Form W-8 or

Responsibilities of a

Form W-9 — Presumption Rules

Withholding Agent

If you do not receive a Form W-8 or Form W-9 that you

may rely upon, or cannot otherwise determine whether a

Chapter 3 and Form 1099 Responsibilities

payment should be treated as made to a U.S. person or to

If you are a withholding agent making a payment of U.S.

a foreign person, use the presumption rules provided in

source interest, dividends, rents, royalties, commissions,

the Regulations under sections 1441, 1446, 1471, 6045,

nonemployee compensation, other FDAP gains, profits, or

and 6049. However, you may not withhold at a reduced

income, and certain other amounts (including broker and

rate by applying the presumption rules if you have actual

barter exchange transactions, and certain payments

knowledge that a higher withholding rate is applicable.

made by fishing boat operators), you are generally

Chapter 4 Responsibilities

required to obtain from the payee either a Form W-9 or a

Form W-8. These forms are also used to establish a

For purposes of chapter 4, if you are a withholding agent

person's status for purposes of domestic information

making a withholdable payment to an entity payee, you

reporting (for example, on a Form 1099) and backup

must establish the chapter 4 status of the entity payee (as

withholding, including to determine, for purposes of

required for chapter 4 purposes) to determine if

section 6050W, whether a participating payee is a foreign

withholding applies by generally obtaining a Form W-8

person. If you receive a Form W-9, you must generally

that you can reliably associate with the payment. If you

make an information return on a Form 1099 (unless the

are not making a withholdable payment, a valid chapter 4

payee has provided a valid code on the form to indicate it

status is generally not required on the form for the payee,

is an exempt recipient). If you receive a Form W-8, you

but see the additional requirements for providing a

are exempt from reporting on Form 1099, but you may

chapter 4 status by an entity providing a Form W-8IMY.

have to file Form 1042-S and withhold under the rules

You can reliably associate a payment with a Form W-8 for

applicable to payments made to foreign persons. See the

purposes of establishing a payee’s chapter 4 status if,

Instructions for Form 1042-S for more information. See,

prior to the payment, you obtain a valid form that contains

however, Regulations section 1.1441-1(c)(17), allowing a

the information required for chapter 4 purposes, you can

payment to be associated with documentation other than

reliably determine how much of the payment relates to the

a Form W-8 for a payment made outside the United

documentation, and you have no actual knowledge or

States with respect to an offshore obligation under

reason to know that any of the information, certifications,

Regulations section 1.6049-5(c)(1).

or statements in, or associated with, the documentation

are unreliable or incorrect for chapter 4 purposes. See

Generally, for purposes of chapter 3, you must withhold

Regulations section 1.1471-3(e)(4) for “reason to know”

30% from the gross amount of FDAP income paid to a

standards for purposes of chapter 4.

foreign person that is an amount subject to chapter 3

withholding under Regulations section 1.1441-2(a) unless

Thus, a withholding agent must also determine if a

you can reliably associate the payment with a Form W-8

payment is a withholdable payment without regard to

or other permitted documentation. You can reliably

exceptions from withholding applicable under chapter 3

associate a payment with a Form W-8 if you hold a valid

and, for each such withholdable payment, must obtain a

form, you can reliably determine how much of the

Form W-8 upon which it is permitted to rely under

payment relates to the form, and you have no actual

chapter 4 to determine the chapter 4 status of a payee

knowledge or reason to know that any of the information

that is a foreign person for purposes of whether

or certifications on the form are unreliable or incorrect. In

withholding applies under chapter 4. See, however,

addition, a partnership that has ECTI allocable to a foreign

Regulations section 1.1471-3(d) for cases in which a

partner is a withholding agent with respect to that income

withholding agent may obtain other documentation to

and must withhold in accordance with the provisions of

determine an entity payee’s chapter 4 status. For a

Regulations sections 1.1446-1 through 1.1446-6. See the

participating FFI or registered deemed-compliant FFI, see

Instructions for Forms 8804, 8805, and 8813.

the requirements under Regulations section 1.1471-4 or

the requirements of an applicable IGA for the

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Instructions for the Requester of Forms W-8 (Rev. 7-2014)

Instructions For The Requester Of Forms W-8ben, W-8ben-E, W-8eci, W-8exp, And W-8imy - 2014 Page 3

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