The IRS has released the draft 2016 Form W-8IMY (PDF, 221KB) which is set to be finalized by September 2016. The 2016 version will replace the April 2014 version of the Form.
Updates to 2016 Version of Form W-8IMY
The draft 2016 Form W-8IMY contains the following key changes:
- There is a new chapter 4 status of Certified deemed-compliant investment advisors and investment managers. The corresponding certification can be found in Part XVI.
- The chapter 4 status of Sponsored FFI replaces Sponsored FFI that has not obtained a GIIN.
- Part II is updated to include disregarded entities in a country other than the FFIs country of residence only if it has a GIIN.
- Part III contain additional certifications and checkboxes for Qualified Intermediaries (QI) that act as qualified derivatives dealers (QDDs) or QIs that assume primary withholding responsibility for payments of substitute interest.
The QI certifications have been updated to incorporate updates to the Proposed QI agreement. The Proposed Agreement provides that a QDD must assume primary withholding and reporting obligations under chapters 3 and 4, and must assume primary Form 1099 reporting and backup withholding obligations for all payments it makes as a QDD with respect to a potential section 871(m) transaction, if the amount paid is an amount subject to chapter 3 or 4 withholding or a reportable payment under chapter 61. Additionally, the Proposed Agreement permits a QI to assume primary withholding and reporting with respect to payments of U.S. source substitute interest it receives in connection with a sale-repurchase or similar agreement, a securities lending transaction, or collateral that it holds in connection with its activities as a dealer in securities.
- The Nonwithholding Foreign Partnership, Simple Trust, or Grantor trust certification section in Part VIII now includes Line 19b which allows a foreign partnership to certify that it is a partner in a lower-tier partnership completing the form for purposes of section 1446.
- The Sponsored FFI certification section in Part X now requires Sponsored FFIs to list the Sponsoring Entity’s GIIN on line 21a.
- The Nonreporting IGA FFI certification section in Part XIX now requires entities claiming to be a Nonreporting IGA FFI to check whether they are operating under a Model 1 or Model 2 agreement. Additionally, a trustee documented trust or a sponsored entity must provide the name of their trustee or sponsor whose GIIN is provided on line 9a or their own GIIN (if issued to them).
- The Sponsored Direct Reporting NFFE section in Part XXVIII now requires the Sponsored Entity to list the Sponsoring Entity’s GIIN.
This draft 2016 Form W-IMY was released by the IRS as courtesy and should not be relied upon for filing as the finalized forms are subject to change before release. If you have any comments regarding the draft form, you may submit comments at http://bit.ly/2bKHZQm
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