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.
The draft version of the Form W-9 and instructions can be found here.
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