Instructions For Forms 8804, 8805, And 8813

requirements applicable to withholding

1. The end of the 3rd year after the

A widely held partnership that relies in

agents as requirements applicable to

tax year of the partnership during which

good faith on a certification of nonforeign

partnerships themselves.

the certification was obtained.

status or Forms W-8BEN or W-9 in

2. The date the partnership receives

determining nonforeign status will not be

notice from the partner that it has become

held liable for payment of the tax, any

Determining If a Partner Is

a foreign person.

applicable penalties, or interest. However,

a Foreign Person

3. The date the partnership learns that

if a partnership learns that any of these

the partner is, or has become, a foreign

forms contain false information, it may no

A partnership must determine if any

person.

longer rely on the form and will be liable

partner is a foreign person subject to

under section 1461 for any failure to pay

section 1446. Under section 1446, a

Form of certification. No particular form

the withholding tax under section 1446 for

foreign person is a nonresident alien

nor any particular language is required for

the tax year in which it obtained that

individual, foreign corporation, foreign

certification of nonforeign status.

knowledge. The partnership will not be

partnership, or foreign trust or estate. A

However, the certification must:

liable for penalties for failure to make

partnership may determine a partner’s

timely payments of installments of the

1. State that the partner is not a

status by relying on a certification of

section 1446 withholding tax that were

foreign person.

nonforeign status or by any other means.

due prior to the time it learned that the

2. State the partner’s name, U.S.

Certification of Nonforeign

taxpayer identifying number, and home

information it properly relied on was false.

Status

address (for individuals) or office address

For a widely held partnership, the

(for entities).

In general, a partnership may determine

documentation used to determine the

3. State that the partner will notify the

that a partner is not a foreign person by

nonforeign status of a partner must be

partnership within 60 days of a change to

obtaining a certification of nonforeign

kept until the end of the 5th tax year

foreign status.

status from the partner. A partnership that

following the last tax year in which the

4. Be signed by or for the partner

has obtained this certification may rely on

partnership properly relied on the

under penalties of perjury.

it to establish the nonforeign status of a

documentation.

partner. See below.

A certification of nonforeign status

must be verified as true and signed under

Use of Means Other Than

Effect of certification. Generally, a

penalties of perjury by a responsible

Certification

partnership that has obtained a

corporate officer for a corporation that is a

certification of nonforeign status

A partnership is not required to obtain a

partner, by a general partner for a

according to the rules in these

certification of nonforeign status. It may

partnership that is a partner, and by a

instructions may rely on the certification to

rely on other means to learn the

trustee, executor, or equivalent fiduciary

determine that the partner is not subject

nonforeign status of the partner. But if the

for a trust or estate that is a partner. A

to withholding. If a partnership relies in

partnership relies on other means and

certification of nonforeign status may also

good faith on the certification, but it is

erroneously determines that the partner

be signed by a person authorized under a

later determined that the certification was

was not a foreign person, the partnership

properly executed power of attorney,

false, the partnership will not be held

will be held liable for payment of the tax,

provided the power of attorney

liable for payment of the tax, any

any applicable penalties, and interest. A

accompanies the certification.

applicable penalties, or interest. A

partnership is not required to rely on other

How long to keep the certifications. A

certification that satisfies the

means to determine the nonforeign status

partnership must keep a certification of

requirements of these instructions will

of a partner and may demand a

nonforeign status until the end of the 5th

also satisfy the requirements for a

certification of nonforeign status.

tax year after the last tax year in which

certificate of nonforeign status under

the partnership relied on the certification.

section 1445.

Effectively Connected

Special rule for widely held

Once a partnership learns that the

Taxable Income

partnership. In addition to relying on a

certification is false, it will no longer be

certification of nonforeign status, a widely

entitled to rely on that certification. For

Definition

held partnership (a partnership that has

this purpose, the knowledge of any

“Effectively connected taxable income” is

more than 200 partners, including a

general partner will be imputed to the

the excess of the gross income of the

publicly traded partnership) may rely on

partnership to cause a withholding

partnership that is effectively connected

the information provided to it by partners

liability. The knowledge of one of its

under section 864(c), or treated as

on a Form W-8BEN, Certificate of

limited partners will not be imputed to a

effectively connected with the conduct of

Foreign Status of Beneficial Owner for

partnership based solely on that partner’s

a U.S. trade or business, over the

United States Tax Withholding, or Form

status as a limited partner. For a limited

allowable deductions that are connected

W-9, Request for Taxpayer Identification

liability company or other entity classified

to such income. See Pub. 519, U.S. Tax

Number and Certification.

as a partnership for Federal income tax

Guide for Aliens, for detailed instructions

purposes, any member with authority to

Also, a widely held partnership may

regarding the computation of effectively

manage or bind the entity is treated as a

rely on a certification under penalties of

connected taxable income. For purposes

general partner.

perjury from a nominee (or intermediary)

of these instructions, figure this income

about the nonforeign status of partners

Also, the partnership will be liable

with the following adjustments:

owning partnership interests through the

under section 1461 for any failure to pay

1. Section 703(a)(1) does not apply.

nominee. No particular form is required

the withholding tax under section 1446 for

2. The partnership is allowed a

for this certification, but it should identify

the tax year in which it learned that the

deduction for depletion of oil and gas

the partner for whom the certification is

certification is false. However, the

wells, but the amount of the deduction

made and indicate the basis for the

partnership will not be liable for penalties

must be determined without regard to

certification. When making a certification,

for failure to make timely payments of

sections 613 and 613A.

a nominee may also rely on a certification

installments of section 1446 withholding

3. The partnership may not take into

of nonforeign status or on information

tax that were due prior to the time it

account items of income, gain, loss, or

provided by Forms W-8BEN or W-9. A

learned that the certification was false.

deduction allocable to any partner that is

nominee and a partnership may not rely

not a foreign partner.

Duration of certification. A partnership

on any of those forms after the date that

4. The partnership may not take into

may rely on a partner’s certification of

the forms must be re-executed, nor on a

account any net operating loss carryovers

nonforeign status until the earliest of the

certification of nonforeign status based on

or charitable contributions.

following:

an election under section 897(i).

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Instructions for Forms 8804, 8805, and 8813

Instructions For Forms 8804, 8805, And 8813 - 2003 Page 2

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