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Filing Your W8-BEN Form

Taxpayers are encouraged to heed the advice of the IRS and file undisclosed assets with the government through the Overseas Voluntary Disclosure Program while it is still available.

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Filing Your W8-BEN Form

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  1. Filing Your W8-BEN Form

  2. Who Is Subject To Filing Think only United States citizens are subject to U.S. taxes? Think again. Any non-U.S. person (or business entity) who receives income from a U.S. source is subject to U.S. taxes. In most cases, this refers to a 30% flat-rate tax on many different kinds of income including: Qualified interest payments Royalties or dividends Premiums Rent Bank deposit interest General service compensation And more

  3. Who Is Required To Submit A W8-BEN? The tax is withheld by the person or business who is the source of the income and therefore it is their responsibility to have a W-8BEN form submitted for each individual they do a transaction with. The payor is known as a “withholding agent” and as such, it is their responsibility to provide the IRS with the required information and tax payment.

  4. Reasons To Not Submit A W-8BEN The 30% withholding tax may be lowered according to country-specific tax treaty rates, but in general, ALL payments to non-U.S. persons must be taxed which would require the verification and submission of a W-8BEN form. If the payee is a citizen of the United States, then a W-9 form, not a W-8 form, is required for managing income tax payments.

  5. What Is The W-8BEN-E Form? This form is used by foreign entities to document their status as a foreign benefactor of income. This is used in place of the W-8BEN form when income is paid out to a business or entity rather than a single individual. If you are unsure whether to file a W-8BEN form for a foreign individual or business to whom you paid income last year, please contact your tax professional. The requirements are strict and the penalties can be steep for those who fail to adequately comply with tax withholding requirements.

  6. ABOUT FREEMAN TAX LAW Freeman Tax Law is a boutique tax law firm with national exposure equipped to handle all domestic and international tax law matters. At Freeman Tax Law, the attorneys and professional staff have vast experience with foreign tax compliance, international tax planning, and resolving tax controversies involving offshore banking matters. Freeman Tax Law helps taxpayers and foreign entities become in compliance with laws such as Foreign Account Tax Compliance Act (FATCA) and Offshore Voluntary Disclosure Program (OVDP). In addition to handling complex tax controversies, the Freeman Tax Law team has extensive expertise in assisting clients with wealth management and estate planning.

  7. Our Locations Atlanta, Georgia Austin, Texas Birmingham, Michigan Boston, Massachusetts Charlotte, North Carolina Chicago, Illinois Cleveland, Ohio Dallas, Texas Denver, Colorado Greenwich, Connecticut Houston, Texas Irvine, California Las Vegas, Nevada Los Angeles, California Miami, Florida New York, New York Palo Alto, California Phoenix, Arizona Pleasanton, California San Antonio, Texas San Diego, California San Francisco, California San Jose, California Short Hills, New Jersey Tampa, Florida Washington DC International Locations: Basel, Switzerland Bern, Switzerland Geneva, Switzerland Zurich, Switzerland

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