What’s New

Guidance under section 1446(f). The Tax Cuts and Jobs Act (TCJA), added section 1446(f), which generally requires that if any portion of a gain on any disposition of an interest in a partnership would be treated under section 864(c)(8) as effectively connected gain, the transferee purchasing an interest in such a partnership from a non-U.S. transferor must withhold a tax equal to 10% of the amount realized on the disposition unless an exception to withholding applies. T.D. 9926 (84 FR 76910), published on November 30, 2020, contains final regulations (section 1446(f) regulations) relating to the withholding and reporting required under section 1446(f), which include withholding requirements that apply to brokers effecting transfers of interests in publicly traded partnerships (PTPs). The section 1446(f) regulations also revise certain requirements under section 1446(a) relating to withholding and reporting on distributions made by PTPs, including by expanding the entities permitted to act as nominees for PTP distributions to include certain qualified intermediaries and U.S. branches of foreign persons that agree to act as U.S. persons. Withholding on transfers of interests in PTPs and the revisions included in the section 1446(f) regulations relating to withholding on PTP distributions under section 1446(a) apply to transfers and distributions that occur on or after January 1, 2023. See Notice 2021-51 , 2021-36 I.R.B. 361, for more information. The provisions of the section 1446(f) regulations relating to withholding and reporting on transfers of interests in partnerships that are not PTPs generally apply to transfers occurring after January 29, 2021. See Pub. 515 for an additional discussion of section 1446(f) withholding. The Form W-8IMY and these instructions have been updated to incorporate the use of this form by brokers and certain transferors of partnership interests for purposes of certain of the requirements of the section 1446(f) regulations for withholding on dispositions of partnership interests (in both PTPs and other partnerships) and for withholding on PTP distributions.

Section 871(m) regulations and qualified securities lenders (QSLs). Notice 2020-2, 2020-3 I.R.B. 327, further extended the transition relief provided in Notice 2018-72, 2018-40 I.R.B. 522, for certain provisions of the section 871(m) regulations, generally for 2021 and 2022. Notice 2020-2 also further extended the period that a withholding agent may apply the transition rules to act as a QSL described in obsoleted Notice 2010-46 , 2010-24 I.R.B. 757, Part III, for substitute dividend payments made in 2021 and

2022. As a result, this Form W-8IMY includes chapter 3 status certifications for entities acting as QSLs (applicable to either a qualified intermediary (QI) or other entity acting as a QSL) and clarifies (as provided in the QI agreement) when a QI may continue to claim status as a QSL in a case in which it is also a qualified derivatives dealer (QDD).

New lines 9a and 9b. Line 9b, foreign taxpayer identification number, if required, has been added for a QDD to indicate its foreign taxpayer identification number (FTIN) on this form (with line 9, GIIN (if applicable), redesignated as line 9a). See QDD withholding statement, later, for when a QDD is required to provide its FTIN on line 9b.

Nonqualified intermediary (NQI) that provides an alter- native withholding statement. The Form W-8IMY and these instructions have been updated to allow an NQI that is to provide alternative withholding statements and beneficial owner withholding certificates for payments associated with this form to represent on the form that the information on the withholding certificates will be verified for consistency with any other account information the NQI has for the beneficial owners for determining the rate of withholding with respect to each payee (applying the standards of knowledge under section 1441 or 1471 regulations, as applicable). See T.D. 9890 and Regulations section 1.1441-1(e)(3)(iv)(C)(3). When applicable, an NQI may make this representation on new line 17e instead of on its withholding statement. The Form W-8IMY and these instructions have also been updated to allow nonwithholding foreign partnerships and nonwithholding foreign trusts to make this representation when providing an alternative withholding statement. For further information, see the instructions for line 21f.

Electronic signature. These instructions have been updated to include additional guidance included in final regulations issued under chapter 3 (T.D. 9890) concerning the use of electronic signatures on withholding certificates. See Part XXIX Certification , later, and Regulations section 1.1441-1(e)(4)(i)(B).

Section 6050Y reporting. These instructions have been updated to reference the use of this form by a foreign partnership, foreign simple trust, or foreign grantor trust that is the seller of a life insurance contract (or interest therein) or a recipient of a reportable death benefit for purposes of reporting under section 6050Y.