On October 21, 2016, the IRS issued guidance stating that a withholding agent may accept or make the request that a taxpayer provide the February 2014 revision of Form W-8BEN-E through January 1, 2017. Accordingly, a withholding agent may rely on such a form through its expiration or a change in circumstance.
Withholding agents should be aware that after January 1, 2017, the April 2016 revision of Form W-8BEN-E is required.
While the Treasury Regulations provide that after the issuance of an updated version of a withholding certificate, a withholding agent may continue to accept the prior version of the withholding certificate for six months after the revision date on the updated withholding certificate, there is a provision in the regulations that provide an exception to this rule if the IRS issues guidance indicating otherwise (Treas. Reg. §§1.1441-1T(e)(4)(viii)(C) and 1.1471-3(c)(6)(vii)). Accordingly, withholding agents have the option to delay the use of the 2016 Form W-8BEN-E.
For Your Reference
The IRS News release can be found here.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.