From the IRS;
A W-8BEN must be signed and dated by the beneficial owner of the income. If the beneficial owner is a;
Individual – That person must sign and date the form. The capacity line should be left blank. For a minor child, a parent or guardian may sign and must enter “parent” or “guardian” where applicable on the capacity line.
Corporation – The form must be signed and dated by the President, VP, Treasurer, Assistant-Treasurer, CAO,, or any other officer, such as the Tax Officer, who has the authority to sign. Forms signed by a receiver or trustee in bankruptcy on behalf of a corporation must be accompanied by a copy of the order or instructions of the court signing the form.
Partnership – A general partner or member manager must sign and date the form. If the form is filed on behalf of a partnership by a trustee, receiver or assignee, the fiduciary must sign instead of a general partner or member manager. Forms signed by a receiver or trustee in bankruptcy on behalf of a partnership must be accompanied by a copy of the order or instructions of the court authorizing signing of the form. The capacity line must state the tile of the person signing on behalf of the partnership.
Estate or Trust – A fiduciary must sign and date the form. The capacity line must state the fiduciary’s title – such as trustee, administrator, or executor.
* fiduciary – A person or institution which occupies a position of special trust and has responsibility for the money, property or financial affairs of another
A couple items are coming down the pipeline at the CRA – so say my sources in Headquarters in Ottawa. Since They are a couple years off at best, here are the main 2 which will have a significant impact on the general public, especially in industries where there is a lot of filing of slips and returns to be done.
These items were announced in the 2009 budget on January 27, 2009.
1) Mandatory Electronic Filing for Information Returns – The CRA is tired of getting paper, loads and loads of paper which they then haev to key into their systems which is why they began converting systems about 10 years ago, so they could accomodate the vast amounts of informatin tehy expect to be receiving electronically.
Yes, a lot can be filed with the CRA electronically, on CD rom, or directly through the website, but going forward the CRA will charge a penalty to those filing in any way other than electronically through their website or via XML filing. A smart move!
2) The CRA is in the process of developing a Canadian equivalent to the US W8 / W9 forms which require residents and non-residets of the US o complete valid forms and submit them to transfer agents in order to qualify for a reduced amount of tax withholding, if applicable.
From what I’m told these forms will go hand in hand with the NR4 form and will be a Canadian version, so light on the requirements for now, but used by the CRA going forward. Actually, my sources tell me that these forms will only need to be completed by people whose actual residential address is unknown since the CRA uses that address (domicile) for determining the treaty rate.
Sounds like good times are coming… Tell you friends.
The IRS has started putting together a new group to focus on international tax issues, including offshore bank accounts used to evade taxes.
An IRS unit that deals with large corporations and large partnerships has posted job openings for several positions in a new group that will “focus on examinations involving the complicated business arrangements and entities controlled by the high-wealth taxpayer segment,” according to IRS spokesman Frank Keith.
It shows the agency is “taking this very seriously,” says Roy Black, an attorney at Black, Srebnick, Kornspan & Stumpf. The IRS looks to be assembling a “more sophisticated” group of examiners for the group, judging from the job postings, Black adds.
The group was formed to follow on a pledge by IRS Commissioner Doug Shulman to beef up international tax compliance, partly through a crackdown on people who use offshore accounts to evade taxes. President Obama’s 2010 budget earmarked extra IRS funds for this purpose.
IRS spokesman Keith said it would “be premature at this time to discuss further specifics” of the group that’s being formed.
I think the IRS should open up more than one phone line for international entities and actually have their officers be patient and understanding that those who are calling from say, Canada, may not understand the IRS way of operating and may need some tender love and care. As it is, they come across on this line, from Pennsylvania, as being pompous, arrogant know-it-alls, unwilling to take a few minutes to explain anything to the callers.
At least that is my impression in the dozens of times I have called this line and spoke to a Mr. Jones, Mr. Smith or Agent 345678.
Is it too much to ask for some customer service too… Not everyone calling is a criminal!