New tax forms have become increasingly complex over the years, often requiring individuals and businesses to navigate intricate rules and calculations. In this context, and on the heels of the IRS releasing Draft Forms W-9 and W-8EXP, technology plays a crucial role in simplifying the process around collecting and validating documentation, offering automated, centralized solutions and ensuring accurate compliance with ever-changing tax laws.
The IRS is aware that non-U.S. individuals who are acting on behalf of their non-U.S. employer may not be able to complete the Filing Information Returns Electronically (FIRE) Information Returns (IR) Application for Transmitter Control Code (TCC) as the IR Application for TCC requires a Social Security number (SSN) or Individual Tax Identification Number (ITIN) for system access and individual authentication. If you cannot complete your application by August 1, 2023, your Form 1042-S TCC will remain available for filing. The IRS continues to explore other ways for taxpayers to authenticate their identities, including a government-sponsored option.
Non-U.S. entities with an existing Form 1042-S TCC cannot update entity information on their current TCC application. This will not prohibit you from filing; however, you will need to continue accessing the FIRE System using your existing FIRE TCC account information.
If you have other TCCs, such as a TCC for Forms 1099, they will not remain active for filing. To retain those TCCs, you must complete an IR Application for TCC by August 1, 2023. You can log into the IR Application for TCC here.
On July 26, the IRS released a draft version of the Form W-9 (Rev. October 2023). There are several changes to the form, notably:
Line 3b is added to allow partnerships, trusts, and estates to indicate that they have foreign partners, owners, or beneficiaries when receiving a request for a Form W-9 if they have selected a federal tax classification of “Partnership” or “Trust/Estate” on line 3b. This change is intended to provide a flow-through entity with information regarding the status of its indirect foreign partners, owners, or beneficiaries, so that it can satisfy any applicable reporting requirements. For example, a partnership that has any indirect foreign partners may be required to complete Schedules K-2 and K-3.
New instructions were added stating that line 3b must be checked if you receive a Form W-8 (or documentary evidence) from any partner, owner, or beneficiary establishing foreign status or if you receive a Form W-9 from any partner, owner, or beneficiary that has checked the box on line 3b.
Text has been added to the instructions noting that if you are a qualified foreign pension fund under Regulations section 1.897(l)-1(d), or a partnership that is wholly owned by qualified foreign pension funds, that is treated as a non-foreign person for purposes of section 1445 withholding, do not use Form W-9. Instead, use Form W-8EXP (or other certification of non-foreign status).
The draft form instructions also includes a note that for more information on optional filing methods for grantor trusts, see the Instructions for Form 1041.
On July 27, the IRS released the 2023 version of the Form 8966, FATCA Report.
The Inland Revenue Department of Antigua and Barbuda updated its AEOI portal announcing an extension for both FATCA and CRS reports. The deadline for submission is now September 19, 2023.
The Department for International Tax Cooperation (DITC) of the Cayman Islands published an Updates Bulletin. The Updates Bulletin contains information around 2022 FATCA and CRS reporting deadlines, CRS Compliance Team reminders, and DITC Portal updates.
On July 25, 2023, the Federal Central Tax Office of Germany (BZSt) issued CRS Newsletter 03/2023 which includes the final list of CRS reportable jurisdictions for 2022 reporting.
On July 5, 2023, the Office of the Revenue Commissioners of Ireland published an updated Tax and Duty Manual Part 35-01-01a.
The Office of the Revenue Commissioners of Ireland released eBrief No. 150/23 informing customers that the filing deadline for FATCA, CRS, and DAC2 reports for the 2022 filing period had been deferred from 30 June 2023 to 14 July 2023 due to filing issues in ROS.
On June 28, 2023, the IRS released a draft version of the Form W-8EXP. Note that the Rev. date is October 2023, so organizations should start to plan for any changes, including collecting and validating the new Form W-8EXP. As expected, there are updates related to the FIRPTA withholding (Sec 1445), with new sections added and revisions made to the
