Which Tax Form Should a Non-US Citizen with a US Company Submit?

Question from Boyman, Which Tax Form Should a Non-US Citizen with a US Company Submit?

Answer from AI:

When dealing with tax documentation in the United States, it’s important to understand the purpose of each form and your status as a taxpayer. The forms W-8 and W-9 are used by the Internal Revenue Service (IRS) to gather information about the tax status of individuals and entities.

Understanding Form W-9

Form W-9, “Request for Taxpayer Identification Number and Certification,” is used by U.S. persons, which include U.S. citizens, U.S. resident aliens, and entities that are created or organized in the United States or under the laws of the United States. The form is used to provide your taxpayer identification number (such as your Social Security Number or Employer Identification Number) to the entity that is required to file an information return with the IRS to report, for example, income paid to you, real estate transactions, mortgage interest you paid, acquisition or abandonment of secured property, cancellation of debt, or contributions you made to an IRA.

Understanding Form W-8

Form W-8, on the other hand, is typically used by non-U.S. persons to certify their foreign status and claim any applicable benefits of a tax treaty. There are several versions of Form W-8, including W-8BEN, W-8BEN-E, W-8ECI, W-8EXP, and W-8IMY, each designed for different situations.

Which Form to Submit?

Based on your description, you are a non-U.S. citizen (Turkish) with a U.S. (Delaware) company. Here are the general guidelines:

• If you are acting as an individual and you are not a U.S. citizen or resident alien, you would typically use Form W-8BEN to certify your foreign status and claim any tax treaty benefits.
• If the partnership deal involves your U.S. company and not you personally, and the company is considered a U.S. entity for tax purposes, the company may need to provide a Form W-9.

Additional Considerations

It’s important to note that tax laws can be complex, and your specific circumstances can affect which form is appropriate. Here are some additional steps you might take:

1. Review the instructions for Form W-8BEN and Form W-9 provided by the IRS to determine which form fits your situation.
2. Consider the nature of the income and whether it is effectively connected with a U.S. trade or business, as this could affect which W-8 form to use.
3. Consult with a tax professional or legal advisor who has experience with international tax law and U.S. tax reporting requirements.

Seeking Professional Advice

Given the complexity of tax laws and the potential consequences of submitting incorrect information, it is strongly recommended that you consult with a tax professional or legal advisor. They can provide personalized advice based on a detailed understanding of your business activities and tax obligations.

Remember, the information provided here is general in nature and should not be construed as legal or tax advice. Tax laws and regulations are subject to change, and individual circumstances can vary widely.