Owner Documented Ffi: Fill & Download for Free

In 2010, FATCA was created to solve the problem of U.S. taxpayers with accounts at foreign financial institutions who did not report their foreign income.Some foreign financial institutions report information about the accounts of U.S. taxpayers to the IRS. These foreign financial institutions will prepare a Form 1099-INT for the U.S. taxpayer’s accounts and check the FATCA box on the form. Foreign financial institutions are penalized by the IRS if they do not agree to report.The U.S. taxpayer would then typically file Form 8938 if the value of those assets is more than the applicable reporting threshold. See the instructions for Form 8938 for those thresholds.I am usually pretty good at decryption of IRS rules and regulations, but these are dense! The above is a generality. See a tax accountant if you think any of the above or below might apply to you.According to the IRS instructions for Form 1099-INT:“Check the box if you are a U.S. payer that is reporting on Form(s) 1099 (including reporting payments in boxes 1, 3, 8, 9, and 10 on this Form 1099-INT) as part of satisfying your requirement to report with respect to a U.S. account for chapter 4 purposes as described in Regulations section 1.1471-4(d)(2)(iii)(A). In addition, check the box if you are an FFI reporting payments to a U.S. account pursuant to an election described in Regulations section 1.1471-4(d)(5)(i)(A).”Section 1.1471-4(d)(2)(iii)(A):“Participating FFIs that are U.S. payors (other than U.S. branches) shall be treated as having satisfied the chapter 4 reporting requirements described in paragraph (d)(2)(i) of this section with respect to accounts that the participating FFI is required to treat as U.S. accounts, or accounts held by owner-documented FFIs, if the participating FFI reports with respect to each such account either -(1) The information required by chapter 61 and described in paragraph (d)(5)(ii) or (d)(5)(iii) of this section; or(2) The information described in paragraph (d)(3)(ii), (d)(3)(iii), or (d)(3)(iv) of this section. However, such participating FFI that is required to report on such accounts under chapter 61 is not relieved of that obligation.”Section 1.1471–4(d)(5)(i)(A):“Except as otherwise provided in this paragraph (d)(5), a participating FFI may elect under section 1471(c)(2) and this paragraph (d)(5) to report under sections 6041, 6042, 6045, and 6049, as appropriate, with respect to any account required to be reported under this paragraph (d). Such reporting must be done as if such participating FFI were a U.S. payor and each holder of an account that is a specified U.S. person, passive NFFE that is a U.S. owned foreign entity, or owner-documented FFI were a payee who is an individual and citizen of the United States. If a participating FFI makes such an election, the FFI is required to report the information required under this paragraph (d)(5) with respect to each such U.S. account or account held by an owner-documented FFI, regardless of whether the account holder of such account qualifies as a recipient exempt from reporting by a payor or middleman under sections 6041, 6042, 6045, or 6049, including the reporting of payments made to such account of amounts that are subject to reporting under any of these sections. A participating FFI that elects to report an account under the election described in this paragraph (d)(5) is required to report the information described in paragraph (d)(5)(ii) or (iii) of this section for a calendar year regardless of whether a reportable payment was made to the U.S. account during the calendar year. A participating FFI that reports an account under the election described in this paragraph (d)(5) is not required to report the information described in paragraph (d)(3) of this section with respect to the account. The election under section 1471(c)(2) described in this paragraph (d)(5)(i)(A) does not apply to cash value insurance contracts or annuity contracts that are financial accounts described in § 1.1471-5(b)(1)(iv). See paragraph (d)(5)(i)(B) of this section for an election to report cash value insurance contracts or annuity contracts that are U.S. accounts held by specified U.S. persons in a manner similar to section 6047(d).”

W8BEN You must give Form W-8BEN to the withholding agent or payer if you are a nonresident alien who is the beneficial owner of an amount subject to withholding, or if you are an account holder of an FFI documenting yourself as a nonresident alien. If you are the single owner of a disregarded entity, you are considered the beneficial owner of income received by the disregarded entity.W9 Use Form W-9 to request the taxpayer identification number (TIN) of a U.S. person (including a resident alien) and to request certain certifications and claims for exemption.

You must give Form W-8BEN to a withholding agent or payer if you are a US nonresident alien who is the beneficial owner of an amount subject to withholding, or if you are an account holder of an FFI (Foreign Financial Institution) documenting yourself as a nonresident alien. If you are the single owner of a disregarded entity, you are considered the beneficial owner of income received by the disregarded entity. Submit Form W-8BEN when requested by the withholding agent, payer, or FFI whether or not you are claiming a reduced rate of, or exemption from, withholding.You should also provide Form W-8BEN to a payment settlement entity (PSE) requesting this form if you are a foreign individual receiving payments subject to reporting under section 6050W (payment card transactions and third-party network transactions) as a participating payee.W8 BEN-E is used for the same purposes, except it is for non-US entities rather than individuals.The types of income where a W8 BEN might be requested include:Interest (including certain original issue discount (OID));Dividends;Rents;Royalties;Premiums;Annuities;Compensation for, or in expectation of, services performed;Substitute payments in a securities lending transaction;Other fixed or determinable annual or periodical gains, profits, or income.Broker proceeds;Short-term (183 days or less) OID;Bank deposit interest;Foreign source interest, dividends, rents, or royalties;Proceeds from a wager placed by a nonresident.