We have customer who is a foreign individual and completed a W-8BEN at account opening. The W-8BEN has since expired. He just notified us that his residency status changed because he passed the Substantial Presence Test and is now looking for a 1099-INT for tax year 2022. He just now provided us with a signed W-9, which has a date of this year.

Does anyone know if we need to, or should provide a 1099-INT for 2022 now, even thought the W-9 is dated this year?

If you have not already reported the interest to the IRS under a 1042-S and can make the change, then I might, but you are under no obligation to do so or change your reporting for 2022, as you were not aware of their change in status when that reporting was required to happen.

Randy - another related question - W-8BEN is expired, is the deposit interest still reported on 1042-S or does it convert to a 1099-int - the customer is still a NRA as far as we know! Thanks!

An expired W-8BEN triggers backup withholding and does not impact the form used for information reporting to the IRS.

So if we are using 1042-S we would continue and not change forms, correct?

Whether you report using a 1099 or a 1042-S is determined by their foreign status and not an expired W-8BEN.

thanks! Appreciate the clarification!

Randy - would you on an expired w-8 remove the foreign status flag and see the bank customer as a US Citizen and thus report on 1099?

No - you have to begin backup withholding. Failing to provide the bank with an updated W-8BEN does not impact their foreign status.