Important Information about the W-8ECI and W-9 forms

“The company that manages my properties sent me a W-8ECI form and W-9 form for me to complete. I’m sure I’ve filled one of those before. Do I really need to fill out the other form? What happens if I don’t fill it out? “

These questions are common. Therefore, we at Dominium feel that it is necessary to clarify that nonresident owners of properties for rent in the US may receive a new W-8ECI form from the company managing their properties or rental agency to fill out and sign.

The form is valid for three fiscal years, so if you submitted a signed form in 2015, the form will be valid until December 31, 2018. Your agent will require a new form to be signed starting on January 1, 2018. The form W-9 is for use by US citizens and residents, so you should not fill it out if you are a non-resident.

If the company that manages your properties or reserve agent does not have this form on file, they are required to withhold 30% of any gross rental income received on your behalf and submit it to the IRS for you.

The only way to get reimbursed for a withheld overpayment is to file a tax return following year after the withholding has been applied in order to report the amount of income received and expenses incurred during the year.

The W-8ECI form must be completed by each owner of the property and must contain the Individual Taxpayer Identification Number (ITIN) of each owner. If you need assistance with the form or obtaining an ITIN or have questions about the document, please contact our office.