Form W-8IMY & Instructions Released by IRS

IRS releases 2016 form to certify status under FATCA


IRS has recently released the 2016 Form W-8IMY, Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U.S. Branches for United States Tax Withholding, and Instructions to accommodate the FATCA provisions of the Code’s Chapter 4.

The IRS released a revised Form W-8IMY in September, 2016. The instructions highlight the changes below:

Nonreporting IGA FFIs. The Instructions for how a nonreporting IGA FFI should certify to its chapter 4 status on Form W-8IMY have been revised to coordinate qualification for such status under the IGA with the chapter 4 regs. An FFI that meets the requirements of both a nonreporting IGA FFI under an IGA and a deemed-compliant FFI status under the regs should certify as a nonreporting IGA FFI, unless such entity meets the requirements for owner-documented FFI status for payments associated with this form, in which case it should certify on line 5 to that status under the regs and complete Part XI of the form.

QDDs. In September 2015, temporary and final regs were published concerning nonresident alien individuals and foreign corporations that hold certain financial products providing for payments that are contingent upon or determined by reference to U.S. source dividend payments. The regs created a special category of QI- a QDD. QDD status is relevant on or after Jan. 1, 2017. This form has been updated to include the relevant certifications made by a QI acting as a QDD and must be used by QDDs for payments made on or after Jan. 1, 2017.

QI not assuming primary withholding responsibility. Line 14e on Form W-8IMY has been changed, in response to comments, to provide more specific certifications for a QI that does not assume primary withholding responsibility. As a result, a QI that does not assume primary Form 1099 reporting and backup withholding responsibility should check box 14e but should only check box 14e(i) if it has U.S. non-exempt recipient account holders. The instructions have been updated to reflect this change to the form.