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CSA TRAVEL INFORMATION GUIDE
U.S. Internal Revenue Service FormW8-BEN Certificate of Foreign Status of
Beneficial Owner for United States Tax Withholding
If you have a bank account with a financial institution in the United States that earns interest on
deposits, then you should complete IRS formW8-BEN (Certificate of Foreign Status) with your U.S.
financial institution to avoid possibly having 30% of any interest earned on your deposits withheld
and sent to the U.S. Internal Revenue Service (IRS).
As Canadian residents are aware, bank interest earned on their accounts (regardless of how small),
or received on investments, is considered taxable income when completing each year’s Canadian
income tax return with the Canada Revenue Agency (CRA) – formerly known as Revenue Canada.
Similar to the United States, Canadian banks are in fact required to withhold 30% (the maximum
income tax rate) of any bank interest or investment income they pay to non-residents on their
Canadian bank accounts since these individuals rarely receive T5 slips or complete a Canadian income
tax return. Non-Canadians must, in turn, complete a Canadian income tax return in order to receive
any refund of that withheld money.
IRS formW8-BEN is a withholding tax exemption form that the bank or credit union must keep on
file to explain to the U.S. Internal Revenue Service why they did not hold back any bank interest paid
to you or conversely did not issue you the U.S. equivalent of a Canadian T5 income tax slip.
Unlike the 8840 form that must be completed each year, the W8-BEN form is kept on file by the
financial institution for up to three years.
Scam Alert
In 2005 a scam took place whereby individuals were e-mailed or faxed a supposedW8-BEN form for
completion.
The scam consisted of a covering letter displaying the familiar bald eagle crest of the United States
with the title “United State of America – Internal Revenue Service” underneath. Please note the
spelling error “United State of America”– singular state.
The bogus form contained many personal identity questions that are not found on the genuine
government form such as asking for the individual’s passport number, mother’s maiden name, bank
account number, arrival/departing travel dates, etc.
The form advised individuals to fax the completed form to a specific fax number.
The association cautions all members who receive such a form in the mail, and who are asked to
complete and return it by mail, fax, or e-mail, to first verify by telephone (not using any telephone
number printed on the form or a covering letter in case it is bogus) that their U.S.-based financial
institution did in fact send it for completion. Preferably, the form should be completed and submitted
in-person at your home banking branch while you are in the United States.