5 Ways To Complete Form 1864 W Successfully

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Filing taxes can be a daunting task, especially when dealing with complex forms like the Form 1040 and its accompanying schedules. One of these schedules is the Form 1040-NR, which is used by non-resident aliens and certain resident aliens to report their income and claim a refund. To complete this form successfully, you will need to attach a Form 1864, which is a Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding. In this article, we will explore five ways to complete Form 1864 successfully.

Understanding the Purpose of Form 1864

Before we dive into the ways to complete Form 1864, it's essential to understand its purpose. Form 1864 is a certificate that is used to establish the foreign status of a beneficial owner and to claim a reduced rate of, or exemption from, withholding on income subject to U.S. taxation. This form is typically required when a non-resident alien or a foreign entity receives income from a U.S. source, such as dividends, interest, or royalties.

1. Determine the Type of Beneficial Owner

Types of Beneficial Owners

To complete Form 1864, you need to determine the type of beneficial owner. The form has four types of beneficial owners:

• Individual: A natural person who is a citizen or resident of a foreign country.
• Corporation: A foreign corporation that is not a U.S. person.
• Partnership: A foreign partnership that is not a U.S. person.
• Trust: A foreign trust that is not a U.S. person.

You need to select the correct type of beneficial owner and provide the required documentation to support your claim.

2. Gather Required Documentation

Documentation Requirements

To complete Form 1864, you will need to gather certain documentation, including:

• Taxpayer Identification Number (TIN): You will need to provide your TIN, which can be a Social Security number, Individual Taxpayer Identification Number (ITIN), or Employer Identification Number (EIN).
• Proof of Foreign Status: You will need to provide documentation that establishes your foreign status, such as a passport or a certificate of foreign status from a qualified intermediary.
• Withholding Certificate: You will need to provide a withholding certificate, such as a Form W-8BEN or Form W-8ECI, which certifies your foreign status and claims a reduced rate of, or exemption from, withholding.

3. Complete the Form Correctly

Form Completion Instructions

To complete Form 1864, you will need to follow these steps:

• Part I: Beneficial Owner Information: You will need to provide your name, address, and TIN.
• Part II: Claim of Beneficial Owner: You will need to select the correct type of beneficial owner and provide the required documentation.
• Part III: Certification: You will need to certify that the information provided is accurate and complete.

4. Sign and Date the Form

Signing and Dating Requirements

Once you have completed the form, you will need to sign and date it. The form must be signed by the beneficial owner or an authorized representative. The date of signing must be the same as the date of the certification.

5. Attach the Form to Your Tax Return

Form Attachment Requirements

Finally, you will need to attach Form 1864 to your tax return, which is typically a Form 1040-NR. The form must be attached to the return when it is filed with the IRS.

By following these five steps, you can complete Form 1864 successfully and avoid any potential penalties or delays in processing your tax return.

We hope this article has been informative and helpful in guiding you through the process of completing Form 1864. If you have any questions or need further clarification, please don't hesitate to comment below.

What's Next?

• Share this article with others who may be struggling with completing Form 1864.
• Visit our website for more informative articles on tax-related topics.
• Take a moment to review your tax return and ensure that you have completed all required forms and schedules.