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Electronic signature form w 8ben

hello everyone on YouTube Jim Bakker here making a videos today about form W ABN form W a B and E and form w-9 more specifically about form w8b e and E because I get so many questions about this form because it's so confusing and because I wanna I'm hoping to clarify a little bit of it for everyone here so I have making a video and I'm gonna break it into three sections that I might chop it up into three different videos and if so I'll have the links to the second and the third video linked below and they should all come out at the same time because I'm going to film it all at once I think chop it into three videos because it might get a little long okay so the first video what is form w8b e and E and why do I have to file it or I guess it's more appropriate to say why do I have to complete it right so the first thing I want to share is that for these forms are to certify and to verify your US tax withholding status and you can see at the top of every form and I'll open them up form W ABN let's open up the first form the W AP in a simple form and on this form you can see I'll make myself a little smaller so on this form you can see it is a certificate of foreign status of beneficial owner of United States tax withholding requirements and do not use this form if you are not an individual so this is just for an individual person and if you have a single member LLC in the United States then you would technically be required to complete this form and give it to whoever's asking you for it's generally someone who's paying you something so these forms are needed and required to give to people to companies the businesses who are making payments and who are paying you for something and these are almost always going to be US companies and again they're doing it because they need to certify your tax status and see whether they need to withhold taxes or not and that's a whole whole additional issue that I want to go over and I'm going to go over in you know the second videos which payments are subject to non-resident withholding but for now I want to get over just the concept this form the w8 Ben form w8 Ben he I'm gonna open this one up to this is for certificate of status of beneficial owner for United States tax withholdings the same thing do not use this for a u.s. entity or foreign individual is's for generally a foreign corporation so we have a foreign individual a foreign corporation and form w-9 we have and I'm gonna bring that up to form w-9 is for a u.s. person so if you're a US citizen or a u.s. resident or have a u.s. corporation then you would complete w-9 and those are the generally like that's who would complete w9 so again these forms don't go to the IRS these just go to the person who's paying you and they're held in case there's some issue in the future and you were subject to withholding and the US company didn't withhold any taxes than the US company would be liable for those taxes after the fact and there's no way to get them from a foreign person if you've already paid them so for example if i'm paying royalties to someone and i don't verify that they are a foreign person or not and i don't withhold any taxes then if the IRS comes back later and says you should have withheld these taxes and i hadn't done it i'm liable for those taxes which is why US companies request these forms the the issue i have with it is that very often US companies are misguided in they're withholding efforts and withhold taxes on payments which aren't subject to withholding okay so there's a lot of forms like this the best example i like is rental payments payments to non-residents rental payments paid to non-residents are subject to withholding and think about it conceptually and then I use it for myself I'd say I rent an apartment and my landlord the person who owns the apartment is some guy who lives in Argentina if I pay him my rent every month he's supposed to paying tax on this income he has a properties making it from doing business in the US he has a property in the US however if I pay him and the money is out of the country he doesn't buy to file his taxes I'm on the hook for 30 percent of what I paid him in rental income so for those who have rental properties in their name in the US and they don't want their tenant to withhold it almost I've never seen it happen and I've tried to do it and it doesn't even people don't don't care so W B ECI this is a similar form let's open this one up to certificate of foreign persons claim that income is effectively connected with the trader business so this is basically if you if I'm paying my landlord rent and he is a foreign person or an LLC and I can't Indy wasn't give me a w9 then I would get this filled out and is basically him saying that he is going to pay taxes on the rental income that I pay him because it's not it's what I have to pay the rent the apartment and its income to him so that's kind of like I think that's a good example of with whole double pay um well of like the withholdings and the purpose of these forms these are just internal forms to keep US companies off the hook for withholding taxes that that might may or may not be required on the some are very clearly required and I think I think that really goes over what is form w8 Ben II and why do I have to complete it and that's really the water form w8 then I'm just gonna take it out and what is formed of a bed why do I have to complete I think that's really it you have to complete it to verify your your tax status and I say you there is a company here making a payment and the US and then there's a foreign entity a foreign person someone here that's receiving money from the US entity and the foreign person needs to verify their tax status with the US person in case the withholding well if requested first of all and then the reason for it is to certify that their tax status whether withholding is required or not so that's the purpose of the form you