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How is everyone handling customers that have W-8s expiring? Do you send a letter to the customer? Does your system create a notice? Our system allows us to put in an expiration date but does not automatically generate a notice. What information do you include when you notify the customer of the expiration? What do you do if they don’t sign a new W-8? Any help will be appreciated.
It sounds like your system tracks the expiration so you can begin withholdings if you don’t have a current W-8BEN on file. If you do not have Form W-8BEN in your files, you are required to withhold taxes on interest paid.
I don’t believe there is any required language for a notice to your customer. I recommend you consult with your accountants or tax advisors to for language to explain the IRS requirements and consequences of not having a current W-8 on file.
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