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.
Collecting Backup Withholding (W-8BEN)
“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.”
First published on 04/29/2018