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Handling W-8BEN-E Forms: What to Do When Part III is Blank
January 15, 2025
Q. We received a W8 BEN-E for a Canadian vendor. They left Part III (Claim of Tax Treaty Benefits) blank. Since Part III is not completed, should we proceed with payment of the full amount to this vendor or should any other action be taken?
A.
(Answered by IOFM's third-party tax expert)
If the foreign vendor has not made a treaty benefit claim on their W-8, you would need to withhold 30% as backup withholding and report on Form 1042-S if the payment is U.S.-source and otherwise subject to Form…
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