IRS Releases Revised Form W-9
IRS Releases Revised Form W-9
In early March 2024, the Internal Revenue Services (“IRS”) released a final revised version of the Form W-9 with a revision date listed as March 2024. This release comes after the IRS published the draft of Form W-9 back in 2023. The last time the IRS issued a revised Form W-9 was in 2018.
As a background, W-9 forms are typically used by Financial Institutions ("FIs") to request information from their US clients (individuals as well as entities) to meet any reporting obligations to the IRS (or to local authorities for FATCA reporting purposes).
SUMMARY OF THE KEY CHANGES
Under the revised form, a flow-through entity (e.g. partnership, trusts etc.) is required to complete the newly introduced line 3b to indicate whether it has direct or indirect foreign partners, owners, or beneficiaries when it provides the form to another flow-through entity. The revised instructions to Form W-9 also clarifies how the form should be completed by a single- member limited liability company.
EFFECTIVE DATE FOR REVISED FORM W-9
The revised form is effective immediately upon its publication. The IRS has not provided any transitional rules to allow financial institutions to accept the prior version of Form W-9 for a limited period, as compared to the W-8 form series which generally allowed FIs to continue accepting the prior version of the W-8 form until the end of six full months after the revision date.
As a background, W-9 forms are typically used by Financial Institutions ("FIs") to request information from their US clients (individuals as well as entities) to meet any reporting obligations to the IRS (or to local authorities for FATCA reporting purposes).
SUMMARY OF THE KEY CHANGES
Under the revised form, a flow-through entity (e.g. partnership, trusts etc.) is required to complete the newly introduced line 3b to indicate whether it has direct or indirect foreign partners, owners, or beneficiaries when it provides the form to another flow-through entity. The revised instructions to Form W-9 also clarifies how the form should be completed by a single- member limited liability company.
EFFECTIVE DATE FOR REVISED FORM W-9
The revised form is effective immediately upon its publication. The IRS has not provided any transitional rules to allow financial institutions to accept the prior version of Form W-9 for a limited period, as compared to the W-8 form series which generally allowed FIs to continue accepting the prior version of the W-8 form until the end of six full months after the revision date.