We pay Canadian truckers to haul freight from our U.S. plant, so they come from Canada, load the truck and drive to their destination. We pay the truckers direct or a broker. Is this reportable? Do we need to request a W-9 or W-8BEN? Should we withhold?


Canadian truckers are foreign vendors. Transportation and freight payments are not subject to “Chapter 4” FATCA rules; under Chapter 3, freight is not subject to backup withholding, provided the company is eligible for treaty benefits. We understand this to mean that you need to obtain a W-8, on which the freight company can claim the treaty benefit. But see IRS Publication 515, pages 25 and 39. For IRS International assistance, call (267) 941-1000, or consult a tax attorney.

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