Summary of when you need to use 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:
- 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 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 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.
- 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 (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.