Are desktop procedures available for the new FATCA, W-9 and W-8 rules?


On The Accounts Payable Network please see the 1099/1042-S/W-9/W-8 section of the AP Compliance Suite: Forms W-9 & W-8. This provides guidance on the various forms and includes links to the IRS Instructions for each form, including the changes brought about by FATCA.

The keys are to know who you are paying and what you are paying for. The vendor team needs to understand chapter 3 reporting with regard to type of payment and “source of income,” i.e., U.S. source (reportable/withholdable) vs. non-U.S. source (not reportable/not withholdable), which varies by payment type. And they need to understand and be aware of chapter 4 (FATCA) reporting requirements—documentation of payees is big here—and should understand which form to expect/require from which vendors (8233, W-8BEN and W-8BEN-E being the primaries). For help there, see the 1042-S Reporting section on TAPN.

In most cases, AP payments for products and services (from “active NFFIs”) are not subject to chapter 4, but it’s possible that some AP payments are—so the vendor team at least needs to be able to recognize when to dig further to determine when a payee/payment is subject to FATCA, so that they can take appropriate steps.

Foreign reporting and withholding was already complex; FATCA has increased the complexity (mostly as far as understanding the language, definitions and intent, in order to determine what applies to whom).  Check out this detailed TAPN guide, Error-Free Payments to Non-U.S. Persons.


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