TEI suggests changes to IRS on FATCA form W-8BEN-E.

• Author: Brown, Colleen C.
• Position: Hiring Incentives to Restore Employment Act of 2010

On June 20, 2016, TEI submitted a letter to the IRS recommending certain changes and clarifications to the FATCA-related Form W-8BEN-E. The letter discusses ambiguities in the most recent version of the form, as well as a need to allow the use of the previous version of the form through the end of 2016. TEI's IRS Administrative Affairs Committee prepared this letter. Colleen C. Brown chairs the Committee, and TEI Tax Counsel John Schoenecker coordinated the preparation of TEI's comments.

We are writing to share our concerns with the recently updated Form W-8BEN-E (Rev. April 2016) and to request that the IRS regard as valid the previous Form W-8BEN-E through December 31, 2016. Withholding agents are straining to obtain recertification of pre-existing accounts for FATCA purposes by July 1, 2016. A requirement to resolicit certifications with the new forms or reject "old" versions of expiring forms so soon after this deadline would significantly burden financial institutions, which are accustomed to performing this type of compliance function. It would be even more difficult for nonfinancial institutions, which have far less experience with these types of forms and reporting concepts. Thus, we are concerned that recent changes to Form W-8BEN-E will cause unintentional mistakes and improper certifications, resulting in unnecessary withholdings by withholding agents, all of which may be avoided with greater clarity in the form.

Tax Executives Institute

TEI is the preeminent association of in-house tax professionals worldwide. Our approximately 7,000 members represent more than 2,800 of the leading corporations in North and South America, Europe, and Asia. TEI represents a cross-section of the business community and is dedicated to developing and effectively implementing sound tax policy, promoting the uniform and equitable enforcement of the tax laws, and reducing the cost and burden of tax administration and compliance to the benefit of taxpayers and governments alike. TEI is firmly committed to maintaining a tax system that works--one that is administrate and with which taxpayers can comply in a cost-efficient and predictable manner.

TEI, as a professional association of in-house tax executives, offers a unique perspective. Members of TEI manage the tax affairs of their companies and must contend daily with provisions of the tax law impacting business enterprises, including compliance with FATCA, both in the United States and around the...