For foreign individuals and entities that receive income in the U.S., W-8 forms are IRS forms used to verify their country of residence for tax purposes, and to claim exempt status from withholding taxes. There are five types of W-8 forms, each specific to certain income types and filers. Failure to submit the form may result in the full 30% tax being withheld.
What is Form W-8IMY?
What Is a W-8 Form? W-8 forms are Internal Revenue Service (IRS) forms filed by foreign individuals and businesses to verify their country of residence for tax purposes and to potentially claim a lower rate of tax withholding on certain incomes. The five types of W-8 forms are W-8BEN, W-8BEN-E, W-8ECI, W-8EXP, and W-8IMY. Generally, both individuals and businesses must submit the form prior to receiving income or credits from a payer or withholding agent. Failure to submit a form may result in a withholding of the full 30% rate that applies to foreign entities.
IRS Form W-8IMY – Who Needs to Fill It Out?
W-8 Forms are filled out by foreign individuals or entities that receive income in the U.S. or earned income in the U.S. There are five types of W-8 forms and the version used is determined by whether the filer is an individual or an entity and the nature of the income received. Form W-8BEN is used by foreign individuals who receive nonbusiness income, while W-8BEN-E is used by foreign entities. Form W-8ECI applies to foreign entities engaged in a trade or business in the U.S. Form W-8EXP applies to exempt organizations, governments, and branches of U.S. organizations, while Form W-8IMY is for intermediaries. The W-8 series of forms must be sent to the payer or withholding agent prior to receiving income or credits.
Step-by-Step: Form W-8IMY Instructions For Filling Out the Document
W-8 forms are used by foreign individuals or entities to certify their country of residence for tax purposes, and apply for reduced rates of withholding. These five forms all require similar basic information (name, address, TINs), but which one needs to be used varies depending on whether the filer is an individual or an entity, the type of income received, and certain special tax treatment qualifications. Additionally, those completing the forms need to submit them to the payer or withholding agent (not the IRS) prior to receiving income or credits, and they are valid for the year in which they are signed and three full calendar years after.
Below, we present a table that will help you understand how to fill out Form W-8IMY.
|Information Required for W-8 Forms||Details|
|Type of Form||Depends on individual/entity, income type, and tax treatment qualifications|
|Name||Full name of the filer|
|Address||Mailing address of the filer|
|TIN (Taxpayer Identification Number)||Unique identification number for tax purposes|
|Submission Process||Forms should be submitted to the payer/withholding agent, not the IRS, before receiving income or credits|
|Validity Period||Forms are valid for the signing year and three full calendar years after|
Do You Need to File Form W-8IMY Each Year?
Foreign individuals and businesses must file W-8 forms every year to verify their country of residence for tax purposes. Different forms must be used depending on the taxpayer’s situation; for instance, individuals use Form W-8BEN, while foreign entities use Form W-8BEN-E. Any of the five W-8 forms must be submitted to the payer or withholding agent prior to receiving payments, or else the foreign taxpayer may be subject to the full 30% rate of withholding on income made in the U.S. Furthermore, these forms are valid for the year in which they are signed and three years following.
Download the official IRS Form W-8IMY PDF
On the official IRS website, you will find a link to download Form W-8IMY. However, to make it easier for you, we are providing the link in our article, which comes directly from the official irs.gov website! Click to download: Form W-8IMY