Note. This publication serves as the Small Entity Compliance Guide required by section 212 of the Small Business Regulatory Enforcement Fairness Act of 1996, P.L. 104-121.

Changes to withholding and reporting procedures. Regulations relating to the withholding of tax on, and reporting of, certain U.S. source income paid to foreign persons generally went into effect for payments made on or after January 1, 2001. These regulations made significant changes to the rules governing payments of U.S. source income, particularly with respect to payments made to foreign intermediaries, foreign partnerships, and foreign trusts.

Form W-8. There are four forms in the W-8 series. The form to use depends on the type of certification being made. As used in this publication, the term "Form W-8" refers to the appropriate document. For more information, see Documentation, later.

• Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding.
• Form W-8ECI, Certificate of Foreign Person's Claim for Exemption From Withholding on Income Effectively Connected With the Conduct of a Trade or Business in the United States.
• Form W-8EXP, Certificate of Foreign Government or Other Foreign Organization for United States Tax Withholding.
• Form W-8IMY, Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U.S. Branches for United States Tax Withholding.

Until further notice, you can rely upon Forms W-8 that contain a P.O. box as a permanent residence address provided you do not know, or have reason to know, that the person providing the form is a U.S. person or that a street address is available. You can rely on Forms W-8 for which there is a U.S. mailing address provided you received the form prior to December 31, 2001.

Reporting requirements. The regulations made significant changes to the method for reporting payments to foreign persons, particularly with respect to payments made to foreign intermediaries, partnerships, and trusts. In addition, Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, was significantly revised to reflect changes in the new regulations.

Electronic deposit rules. You must use the Electronic Federal Tax Payment System (EFTPS) to make electronic deposits of all depository tax liabilities you incur after 2001, if you meet either of the following conditions.

• You had to make electronic deposits in 2001.
• You deposited more than $200,000 in federal depository taxes in 2000.

If you do not meet these conditions, electronic deposits are voluntary.

For more information about depositing electronically, see Publication 966, EFTPS: A Full Range of Electronic Choices To Pay All Your Federal Taxes.

IRS taxpayer identification numbers for aliens. The IRS will issue an individual taxpayer identification number (ITIN) to an alien who does not have and is not eligible to get a social security number (SSN).

An ITIN is for tax use only. It does not entitle an alien to social security benefits or change his or her employment or immigration status under U.S. law.

For more information on ITINs, see U.S. Taxpayer Identification Numbers, later.

Hong Kong. Hong Kong and China continue to be treated as two separate countries for purposes of certain bilateral agreements, the Internal Revenue Code, and the Income Tax Regulations.

Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.

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