Use of IRS W-8BEN and 8233 Forms

Recently there have been some questions regarding when you need to complete an IRS Form W-8BEN and 8233.

Below is a summary of when you need to use these forms:

W-8BEN

• Effective January 1, 2010 the UW requires that a completed and signed form W-9 (or W-8BEN for NonResident Aliens http://www.irs.gov/pub/irs-pdf/fw8ben.pdf) be attached to all tax reportable payments requested on Payment to Individual Reports (PIR) and Direct Payments (DP).  Tax reportable payment account codes are posted on the Accounting Services web page at (http://www.bussvc.wisc.edu/acct/tax/1099tax.pdf).

• See Implementation of W-9 (W-8BEN for Nonresident Aliens) Compliance Letter at Implementation of W-9 Compliance.

In addition, the W-8BEN is also used for the following:

• Use Form W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding, for Scholarship/Fellowship Grants if a tax treaty exemption applies. The treaty must include a provision for Scholarship/Fellowship Grants. To determine if the tax treaty applies refer to Accounting Services web page (http://www.bussvc.wisc.edu/acct/taxtabl1.html). Scroll down to the country in question to see if code 15, Scholarship/Fellowship Grant is covered by that treaty. If a tax treaty exemption is not being claimed, there is no need to complete the form.

8233

• Use Form 8233 Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, for honorariums if tax treaty exemption applies or if claiming daily exemption. To determine if tax treaty applies refer to Accounting Services web page (http://www.bussvc.wisc.edu/acct/taxtabl1.html). Scroll down to find the country in question, and make sure that code 16, Independent Personal Services is covered by the treaty.

Please contact Jose Carus with questions.