On Demand Webinar

Handling Recent Changes to Forms W-8 and W-9

Webinar Details $219

  • Rated:
  • Webinar Length: 100 Minutes
  • Guest Speaker:   Steven Mercatante
  • Topic:   Taxation and Accounting
  • Credit:   CPE 2.0, ATATX 1.5
All Access Membership

Those making certain payments to non-employees must regularly deal with Forms W-9, W-8 or 8233, detailing specific information about the payee. Beyond regulating withholding, payers must make sure that the forms are current, complete and accurate. How can you ensure a proper form that will not subject your company to penalties, interest or tax? Join us for this webinar where you and your colleagues will discover:


•    How to accurately acquire information from payees
•    When you need and do not need to collect a Form W-9
•    Work effectively with vendors: Techniques for success
•    When to use each form W-8: Scenarios to consider
•    Discover how the latest changes can affect your business
•    Data points to capture from Forms W-8: Ensure compliance
•    Form W-8 & W-9 red flags: Spot them before it's too late
•    Keys to effectively validate and review your forms

Learning Objectives:

•    How to accurately acquire information from payees
•    When you need and do not need to collect a Form W-9
•    Work effectively with vendors: Techniques for success

  1. Introduction
  2. The Big Picture: 1042-S Audits Up! 00:01:16
  3. W-8 Validation Issues to Watch! - The W-8BEN 00:07:40
  4. W-8 Validation Issues to Watch! - The W-8BEN-E 00:17:16
  5. W-8 Validation Issues to Watch! - The W-8ECI 00:25:41
  6. W-8 Validation Issues to Watch! - The W-8IMY 00:29:32
  7. The W-9 00:34:14
  8. W-9/W-8 Validation For 1042/1042 S Filing - U.S. Persons 00:45:06
  9. W-9/W-8 Validation For 1042/1042 S Filing - W-9 to W-8 00:48:35
  10. Must Have A W-9/W-8 Due Diligence Framework In Place Or Face Consequences 00:51:30
  11. W-9/W-8 Payee/Payment In Practice 00:53:25
  12. Who is My Payee Non-U.S. Status Red Flags 00:54:59
  13. Who is My Payee U.S. or Non-U.S. ? 00:58:23
  14. Who is My Payee - W-9 vs. W-8 Resident Alien Visas  - Tests for Tax Residency 00:59:19
  15. Who is My Payee - W-9 vs. W-8 Resident Aliens and Counting Days - Substantial Presence Test (SPT) 01:03:13
  16. Who is My Payee Special W 8 vs. W-9 Entity Rules -  Special Rules 01:04:48
  17. Who is My Payee - W-9 vs. W-9 Basic Rules 01:05:39
  18. 1042 S Reportable Income - Purchase Invoices 01:06:50
  19. 1042-S Reportable Income - How Income is Taxed 01:09:52
  20. W-8 Payment Sourcing 01:10:36
  21. W-8’s and Treaty Benefits 01:17:40
  22. Wrap-Up of General W-8/W-9 Validation Tips 01:26:39
  23. Protect Yourself 01:32:49
  24. Attendee Questions 01:36:09
  25. Presentation Closing 01:41:49
  • Audit 00:50:36, 01:00:00
  • Backup Withholding 00:43:09, 00:50:48, 01:15:57
  • C Corporation 00:36:25
  • Contract 00:09:29
  • DBA -Doing Business As 00:35:32
  • Disregarded Entity 00:35:12, 00:36:04, 00:44:43
  • Due Diligence 00:08:06
  • EIN 00:55:52
  • Exempt 00:05:43, 00:20:21, 01:01:00
  • Expatriate 01:00:28
  • FATCA 00:02:20, 00:02:42, 00:30:30
  • Federal Insurance Contributions Act (FICA) 01:01:02
  • Foreign Taxpayer Identification Number - FTIN 00:12:50, 00:14:58, 00:27:23
  • Form 1042 00:02:15, 00:05:09, 00:10:54
  • Form 1042-S 00:02:15, 00:02:50, 00:10:54, 00:39:25, 01:05:49
  • Form 8233 00:45:12, 01:17:59
  • Form 945 00:50:44
  • Form W-8 00:01:22, 00:03:18, 00:06:27, 00:07:48, 00:11:01, 00:31:50, 00:39:38, 00:45:11, 00:53:45, 01:05:48, 01:26:46
  • Form W-9 00:01:24, 00:02:40, 00:06:29, 00;31:57, 00:34:11, 00:39:37, 00:45:08, 00:49:26, 00:55:09, 01:04:45, 01:17:29
  • Green Card Test 00:59:20
  • Intangible Property 01:13:20
  • IRC Section 1446(f) 00:33:26
  • ITIN 00:14:52, 00:55:35
  • Limited Liability Company (LLC) 00:35:10
  • Nonresident Alien (NRA) 00:02:09, 001:08:15, 00:13:49, 00:17:23, 00:56:42, 00:59:25, 01:01:18, 01:07:34, 01:13:32, 01:17:23
  • Publicly Traded Partnerships (PTP) 00:25:41
  • Resident Alien 00:56:41, 00:58:34, 00:59:23, 01:03:15
  • S Corporation 00:36:25
  • Sole Proprietor 00:35:13
  • Substantial Presence Test (SPT) 00:58:45, 01:03:28, 01:06:42
  • Tax Gap 00:03:49
  • TIN 00:12:41, 00:13:44, 00:14:04, 00:21:24, 00:32:20, 00:43:07, 00:55:20, 01:18:03
  • Vendor 00:04:28, 0:07:57, 00:08:49, 00:17:11, 00:39:10, 00:49:27, 01:13:00
  • W-8BEN 00:11:36, 00:12:08, 00:14:42, 00:16:56, 00:27:29
  • W-8BEN-E 00:15:48, 00:17:30, 00:22:42, 00:37:32
  • W-8ECI 00:25:46
  • W-8EXP 00:45:22
  • W-8IMY 00:29:35, 00:30:46
  • Wage 01:00:26

Audit: A formal examination of an organization's or individual's accounts or financial situation

Backup Withholding: Backup withholding is the tax that is levied on investment income, at an established tax rate, as the investor withdraws it. Backup withholding helps to ensure that government tax-collecting agencies (such as the IRS or Canada Revenue Agency) will be able to receive income taxes owed to them from investors' earnings. (www.investopedia.com)

C Corporation: A C corporation, under United States federal income tax law, refers to any corporation that is taxed separately from its owners. A C corporation is distinguished from an S corporation, which generally is not taxed separately. Most major companies are treated as C corporations for U.S. federal income tax purposes.

Contract: A written or spoken agreement, especially one concerning employment, sales, or tenancy, that is intended to be enforceable by law.

DBA -Doing Business As: Sometimes it makes sense for a company to do business under a different name. To do this, the company has to file what's known as a DBA, meaning "doing business as." A DBA is also known as a "fictitious business name," "trade name," or "assumed name."

Disregarded Entity: A disregarded entity refers to a business entity with one owner that is not recognized for tax purposes as an entity separate from its owner. A single-member LLC ( “SMLLC”), for example, is considered to be a disregarded entity. (www.pntax.com)

Due Diligence: Due diligence is a process or effort to collect and analyze information before making a decision or conducting a transaction so a party is not held legally liable for any loss or damage. The term applies to many situations but most notably to business transactions.

EIN: The Employer Identification Number, also known as the Federal Employer Identification Number or the Federal Tax Identification Number, is a unique nine-digit number assigned by the Internal Revenue Service to business entities operating in the United States for the purposes of identification.

Exempt : Exempt employee is a term that refers to a category of employees set out in the Fair Labor Standards Act. They do not receive overtime pay, nor do they qualify for the minimum wage

Expatriate: An expatriate (often shortened to expat) is a person residing in a country other than their native country. ... However, the term 'expatriate' is also used for retirees and others who have chosen to live outside their native country. Historically, it has also referred to exiles.

FATCA: FATCA was enacted in 2010 by Congress to target non-compliance by U.S. taxpayers using foreign accounts. FATCA requires foreign financial institutions (FFIs) to report to the IRS information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest. (www.treasury.gov). FACTA (Fair and Accurate Credit Transactions Act) is an amendment to FCRA (Fair Credit Reporting Act ) that was added, primarily, to protect consumers from identity theft. The Act stipulates requirements for information privacy, accuracy and disposal and limits the ways consumer information can be shared.

Federal Insurance Contributions Act (FICA): The Federal Insurance Contributions Act is a United States federal payroll contribution directed towards both employees and employers to fund Social Security and Medicare—federal programs that provide benefits for retirees, people with disabilities, and children of deceased workers.

Foreign Taxpayer Identification Number - FTIN: An FTIN is a taxpayer identification number issued by a country other than the United States. If aforeign person does not provide its FTIN, it must provide the withholding agent with an explanation ofwhy an FTIN has not been provided.

Form 1042: Form 1042, also "Annual Withholding Tax Return for U.S. Source Income of Foreign Persons", is used to report tax withheld on certain income of foreign persons.

Form 1042-S: Form 1042-S is used to report amounts paid to foreign persons (including persons presumed to be foreign) who are subject to income tax withholding. For an individual taxpayer, Form 1042-S is a document provided to you (and the IRS) by the payer of the income reported.

Form 8233: IRS Form 8233 must be completed when a non U.S. citizen is claiming tax treaty exemption from income taxes for income received for services provided as an independent contractor.

Form 945: IRS Form 945 is titled Annual Return of Withheld Federal Income Tax. Form 945 is used to report withheld federal income tax from nonpayroll payments, including distributions from qualified retirement plans.

Form W-8: Form W-8 is filled out by foreign entities (citizens and corporations) in order to claim exempt status from certain tax withholdings. The form is used to declare an entity's status as non-resident alien or foreign national who works outside of the United States.

Form W-9: Form W-9 (officially, the "Request for Taxpayer Identification Number and Certification") is used in the United States income tax system by a third party who must file an information return with the Internal Revenue Service (IRS). It requests the name, address, and taxpayer identification information of a taxpayer (in the form of a Social Security Number or Employer Identification Number). - Wikipedia (https://en.m.wikipedia.org/)

Green Card Test: You are a resident, for U.S. federal tax purposes, if you are a lawful permanent resident of the United States at any time during the calendar year. This is known as the "green card" test. You are a lawful permanent resident of the United States, at any time, if you have been given the privilege, according to the immigration laws, of residing permanently in the United States as an immigrant. You generally have this status if the U.S. Citizenship and Immigration Services (USCIS) issued you a Permanent Resident Card, Form I-551, also known as a "green card."

ITIN : An Individual Taxpayer Identification Number is a United States tax processing number issued by the Internal Revenue Service. It is a nine-digit number that begins with the number 9, and the 4th and 5th digits, also known as second section, range from 70 to 88, 90 to 92 and 94 to 99.

Intangible Property: Intangible property, also known as incorporeal property, describes something which a person or corporation can have ownership of and can transfer ownership to another person or corporation, but has no physical substance, for example brand identity or knowledge/intellectual property. (en.wikipedia.org)

Limited Liability Company (LLC): An LLC is a corporate structure where members cannot be held accountable for the company’s debts or liabilities. This can shield business owners from losing their entire life savings if, for example, someone were to sue the company. Can be a single member (much like a sole proprietor) or a multi-member. It shares certain traits of both corporations as well as partnerships or sole proprietorships. It is not a corporation.

Nonresident Alien (NRA): This income is taxed at a flat 30% rate, unless a tax treaty specifies a lower rate. Nonresident aliens must file and pay any tax due using Form 1040NR, U.S. Nonresident Alien Income Tax Return or Form 1040NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens with No Dependents.

PTP - Publicly Traded Partnership: A publicly traded partnership (PTP) is a business organization owned by two or more co-owners whose shares are regularly traded on an established securities market. A publicly traded partnership is a type of limited partnership managed by two or more general partners that can be individuals, corporations or other partnerships, and that is capitalized by limited partners who provide capital but have no management role in the partnership.

Resident Alien : A resident alien is a foreign person who is a permanent resident of the country in which he or she resides but does not have citizenship. To fall under this classification in the United States, a person needs to either have a current green card or have had one in the previous calendar year.

S Corporation: An S corporation, for United States federal income tax, is a closely held corporation that makes a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code. In general, S corporations do not pay any income taxes.

Sole Proprietor: A business that legally has no separate existence from its owner. The sole proprietorship is the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts.

Substantial Presence Test (SPT) : The Substantial Presence Test (SPT) is a criterion used by the Internal Revenue Service (IRS) in the United States to determine whether an individual who is not a citizen or lawful permanent resident in the recent past qualifies as a "resident for tax purposes" or a "nonresident for tax purposes"; it is a form of physical presence test. The SPT should be used in conjunction with the Green Card Test (the criterion that the individual possessed a valid Green Card at any time of the year). An individual who satisfies either one or both of these tests is treated as a resident for tax purposes.

TIN: A Taxpayer Identification Number is an identifying number used for tax purposes in the United States and in other countries under the Common Reporting Standard. In the United States, it is also known as a Tax Identification Number or Federal Taxpayer Identification Number.

TIN Match Program: TIN Matching is part of a suite of Internet-based pre-filing e-services that allows “authorized payers” the opportunity to match 1099 payee information against IRS records prior to filing information returns.

Tax Gap: The gross tax gap is the difference between true tax liability for a given tax year and the amount that is paid on time. It is comprised of the nonfiling gap, the underreporting gap, and the underpayment (or remittance) gap.

W-8BEN: Form W8-BEN, Certificate of Foreign Status of Beneficial Owner for U.S. Tax Withholding, is used by a foreign person to establish both foreign status and beneficial ownership, and to claim income tax treaty benefits with respect to income other than compensation for personal services. Give Form W-8 BEN to the withholding agent or payer if you are a foreign person and you are the beneficial owner of an amount subject to withholding. Submit Form W-8 BEN when requested by the withholding agent or payer whether or not you are claiming a reduced rate of, or exemption from, withholding.

W-8BEN-E: W-8BEN-E is an important tax document which allows businesses operating outside of the U.S. to claim tax exemption on U.S.-sourced income. The official document title is Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities).

W-8ECI: Form W-8ECI is the Certificate of Foreign Person's Claim for Exemption From Withholding on Income Effectively Connected With the Conduct of a Trade or Business in the United States. You must give Form W-8 ECI to the withholding agent or payer if you are a foreign person and you are the beneficial owner of U.S. source income that is (or is deemed to be) effectively connected with the conduct of a trade or business within the United States.

W-8EXP: A foreign government must provide Form W-8EXP to establish eligibility for exemption from withholding for payments exempt from tax under section 892 or for purposes of establishing its status as an exempt beneficial owner.

W-8IMY: This form may serve to establish foreign status for purposes of sections 1441, 1442, and 1446. The W-8IMY is used by an intermediary, a withholding foreign partnership, a withholding foreign trust, or flow-through entity.

Wage: A fixed regular payment, typically paid on a daily or weekly basis, made by an employer to an employee, especially to a manual or unskilled worker.

Guest Speaker

  • Steven Mercatante

CPE Credit

Continuing Professional Education

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ATATX Credit

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