Why does a recipient need to submit Form W-8BEN to the Payer?

Last modified 9/26/2023 8:12:25 AM EST

A recipient needs to submit Form W-8BEN to their payer to use this information to file an information return with the IRS reporting the amount paid to the recipient. If applicable, a recipient can also claim a withholding based on the Tax Treaty between the country of the recipient’s citizenship and the United States.