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Change in W8-BEN form procedures

Posted: Sat Mar 10, 2018 9:22 am
by Steve Sokolowski
After some research, I'm pleased to announce that we won't need to file the W8-BEN and W8-BEN-E forms with the IRS, as the website currently indicates. Instead, it turns out that, in order to comply with the law, we only need to collect the data and retain it, rather than file it with anyone.

Therefore, I'll be changing the policy on the documentation page. The new policy, which is also clearer as to exactly how the data is being handled, will provide the following process for W8-BEN and W8-BEN-E forms:
  • Within 24 hours after submission, the forms are moved offline so they are unhackable.
  • Within the next month, they will be checked for validity using a very basic process: all the fields must be filled out, they must be signed, the data must be reasonable (ex: the name of the city must be real), and the person must not have stated anywhere on the Internet that (s)he is lying. Otherwise, no identity documents need to be verified. Forms that fail to meet the criteria above will be requested again.
  • Valid forms will be permanently moved to three duplicate SD cards that will never be used by us or looked at by us again. The cards will never be inserted into an online computer again except if we are required to produce it in court.
  • After the statute of limitations expires, the SD cards, including the backups, will be permanently destroyed without the data being read again.
This policy is much better than the old one, where we incorrectly thought that the forms needed to be filed with the IRS. It turns out that, in most cases, these forms will never be needed for any reason, will be filed with nobody, and will simply be destroyed a few years from now.

Re: Change in W8-BEN form procedures

Posted: Sat Mar 10, 2018 9:25 am
by Acm11
that is great news!!!

Re: Change in W8-BEN form procedures

Posted: Fri Mar 16, 2018 1:12 am
by CSZiggy
From my readings, Form W8-BEN deals with income that is NOT compensation for personal services.

If US people are getting 1099 forms as independent contractors, why aren't we foreign people filling out 8233 forms to be exempt from paying the 30% tax rate on compensation for independent personal services performed in the US?

https://www.irs.gov/pub/irs-pdf/f8233.pdf