Skip to content

Collecting Backup Withholding (W-8BEN)

Answered by: 

Question: 
“We have several W8BEN filings that have expired. . From our research we have learned that W-8BENs are exempt from 1099 INT reporting, does this also mean that the bank does not collect backup withholding from these customers? We are needing to know what an expired W-8BEN means to the bank…Is it a big deal?...If so what should the time frame be to get a current W-8BEN from the customer and what should the consequence be if the bank does not receive one.”
Answer: 

If the W-8BEN is expired, then you have to initiate backup withholding. Beginning for calendar year 2013, all banks have to report interest paid to non-resident aliens on Form 1042-S.

https://www.irs.gov/irb/2012-20_IRB/ar07.html

First published on 04/29/2018

Filed under: 
Filed under lending as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics