Tuesday, August 14, 2012

Draft of Form W-8IMYwith FATCA Changes

The IRS released modified versions of draft Form W-8IMY, Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U.S. Branches for United States Tax Withholding., on August 13, 2012.

The new form reveals a foreign financial institution employment identification number (FFI-EIN) and a FATCA ID for participating FFIs and deemed-compliant FFIs. In order to protect taxpayer confidentiality, the IRS decided to issue entities the two different numbers to serve different roles.

The FFI-EIN will be used for filing purposes and the FATCA ID will be used for public verification purposes. A foreign tax identifying number will now also be required on Form W-8BEN.

In June we Blogged about the IRS' release of Draft of Form W-8BEN with FATCA Changes, which modified versions of draft Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding, for individuals and entities.

The draft Form, now divided into W-8BEN and W-8BEN-E, is a pre-release, but as expected, it indicates changes to come for foreign financial institutions and withholding agents which are now reflected in this newly released draft of Form W-8IMY.

If you have any questions regarding Form W-8BEN OR W-8IMY, contact the Tax Lawyers at Marini & Associates, P.A. for a FREE Tax Consultation at www.TaxAid.us or www.TaxLaw.ms or Toll Free at 888-8TaxAid (888 882-9243).

1 comment:

  1. All of these new FATCA forms show the hubris of the US government. The new W-8BEN-E is 6 pages long and has 32 questions plus blanks to fill in at the end. The new W-8IMY asks the foreign entity to determine which of 20 categories they satisfy under US tax law principles. Can you imagine the outrage if some other country expected Americans to answer a 6 page quesitonaire regarding foreign tax rules before being able to open a bank account in the US? Outrageous.
    Posted by LeVine Richard