W-8BEN - 1099-INT

[STEPHAN]

I need to issue a 1099-INT to a foreign person. I do have a W-8BEN from her.

I understand that I do not have to withhold anything.

The web-based service I am trying to use insists that she needs a TIN.

Is that correct?

 

[Taxing Matters]

I need to issue a 1099-INT to a foreign person. I do have a W-8BEN from her.

I understand that I do not have to withhold anything.

The web-based service I am trying to use insists that she needs a TIN.

Is that correct?

Are you sure you need a Form 1099-INT? Generally when you are making payments to a non-resident alien individual you report that on Form 1042-S, not form 1099-INT. Without knowing the details of why you are paying this person I cannot tell you for sure which form you need. The 1042-S instructions tell you then the TIN of the person you paid must be included on the return.

 

[STEPHAN]

We are paying interest on a loan we got from a German citizen. She has no US TIN.

We have a W-8BEN from her so we are not withholding anything.

 

[FlyingRon]

You don't understand. A 1099-INT is for US resident. The 1042-S is used whether or not it is taxable (or whether you withhold anything) when the recipient is a foreign resident.

So as to the "which form" question you didn't ask, the question is if this German is residing in the US or in Germany?

The 1042-S says "if the any" for the US TIN.

 

[STEPHAN]

Thanks! I was not aware that a 1099-INT is for US residents only.

We have a loan from a German citizen residing in Germany. I had them sign a W-8BEN assuming that I would not have to withhold anything. We paid about $3500 in interest.

I just wanted to make sure I report this correctly.

 

[STEPHAN]

So, just to not make any mistake:

I paid interest to a non-resident alien in Germany. I have a form W-8BEN, so I did not withhold anything.

The person does not have a TIN.

I will report the payment on a 1042-S.

Doe this sound correct?

 

[LdiJ]

So, just to not make any mistake:

I paid interest to a non-resident alien in Germany. I have a form W-8BEN, so I did not withhold anything.

The person does not have a TIN.

I will report the payment on a 1042-S.

Doe this sound correct?

It does.