What is IRS form W-8?

IRS Form W-8 is a series of forms used by foreign individuals and entities to certify their foreign status and claim tax treaty benefits for income received from U.S. sources. The most common version, Form W-8BEN, is typically used by non-U.S. individuals, while Form W-8BEN-E is for foreign entities. By completing this form, the foreign payee can avoid or reduce withholding taxes on certain types of U.S. income, such as dividends and royalties. It is important for U.S. payers to collect this form to comply with IRS regulations.