Form W-8CE (11-2009) Page 2
or program, any item of deferred
compensation, and any property, or right to
property, that the individual is entitled to
receive in connection with the performance
of services to the extent not previously
taken into account under section 83 or in
accordance with section 83.
Eligible deferred compensation item
(Box 1). A deferred compensation item is an
eligible deferred compensation item if the
following three conditions are met.
1. The payer is either a U.S. person or a
foreign person electing to be treated as a
U.S. person under an agreement with the
IRS. (Separate guidance will be issued
providing procedures to make this election.)
2. You notify the payer of your status as a
covered expatriate.
3. You make an irrevocable waiver on
Form 8854 of any right to claim any
reduction of withholding on this item under
any treaty with the United States.
Check Box 1 if you have an eligible
deferred compensation item. Checking this
box provides notice to the payer that you
are a covered expatriate who is waiving
benefits under any treaty with the United
States for the eligible deferred
compensation item.
Ineligible deferred compensation item
(Box 2). A deferred compensation item is an
ineligible deferred compensation item if the
three conditions listed above are not met.
Check Box 2 if you have an ineligible
deferred compensation item. Checking this
box provides notice to the payer that you
are a covered expatriate who is to be
treated as receiving an amount equal to
the present value of your accrued benefit
on the day before your expatriation date.
Specified tax deferred account (Box 3).
Specified tax deferred accounts include
individual retirement plans (as defined in
section 7701(a)(37)) other than
arrangements described in subsection (k)
or (p) of section 408, qualified tuition
programs (as defined in section 529),
Coverdell education savings accounts (as
defined in section 530), health savings
accounts (as defined in section 223), and
Archer MSAs (as defined in section 220).
Check Box 3 if you have a specified tax
deferred account. Checking this box
provides notice to the payer that you are a
covered expatriate who is to be treated as
receiving a distribution of your entire
interest in the account on the day before
your expatriation date.
Nongrantor trust (Box 4). A nongrantor
trust is the portion of any trust (U.S. or
foreign) that you are not considered
(immediately before your expatriation date)
to own under the grantor trust rules (see
sections 671 through 679). The withholding
rules of section 877A apply to a nongrantor
trust only if you were a beneficiary on the
day before your expatriation date.
Check Box 4 if you were the beneficiary
of a nongrantor trust on the day before
your expatriation date. Checking this box
provides notice to the trustee that you are
a covered expatriate who, unless the box
below this line is checked, is deemed to
have waived any right to claim any
reduction in withholding on any distribution
from this trust under any treaty with the
United States.
Election to be treated as receiving
value of interest in the trust. You can
elect to pay tax currently on the value of
your interest in the trust if you first obtain a
letter ruling from the IRS stating the value
of your interest in the trust as of the day
before your expatriation date. Make the
election on Form 8854. Attach the
valuation letter ruling to Form 8854 and file
Form 8854 with your Form 1040 or Form
1040NR. An election is not valid unless
your income tax return is filed by the due
date plus extensions.
When To File
File Form W-8CE on the earlier of (a) the
day before the first distribution on or after
the expatriation date or (b) thirty (30) days
after the expatriation date for each
specified tax deferred account, item of
deferred compensation, or interest in a
nongrantor trust.
Where To File
Give Form W-8CE to each payer of the
income described above. Keep a copy for
your own records.
Instructions for Payer
As a result of receiving notification of
expatriation on Form W-8CE, you may
have a requirement to withhold tax under
section 877A or to report information to the
IRS.
Eligible deferred compensation. You
must withhold 30% on any taxable
payment to the covered expatriate.
Ineligible deferred compensation. You
must advise the covered expatriate within
60 days of receipt of this form of the
present value of the individual’s accrued
benefit in the deferred compensation item
on the day before the expatriation date.
Specified tax deferred account. You
must advise the covered expatriate within
60 days of receipt of this form of the
individual’s entire interest in the account
on the day before the expatriation date.
Nongrantor trust. If the covered expatriate
elects to be treated as receiving the value
of his interest in the nongrantor trust on
the day before his expatriation date, you
must provide the covered expatriate within
60 days of receipt of this form with the
information needed to calculate the value
of his interest in the trust as of the day
before the expatriation date. This
information includes the following.
● A copy of the trust deed document.
● A list of assets held by the trust on the
day before the expatriation date and
the values of such assets.
● Relevant information about the
interests of the other beneficiaries.
● Dates of birth of all persons who
constitute measuring lives for any
distributions.
● Policies used by trustees in making
discretionary distributions (if any) that
may constitute an ascertainable
standard.
● Any other relevant information.
If you do not provide such documents
and information to the covered expatriate,
then the election is not valid and you must
withhold 30% on any taxable distributions
from the trust.
If the covered expatriate makes the
election, you must withhold 30% on any
taxable distribution from the trust until you
receive (a) a copy of the valuation letter
ruling issued by the IRS and (b) the
covered expatriate’s certification under
penalties of perjury that he has paid any
tax due on the value of the trust that he is
treated as receiving.
Paperwork Reduction Act Notice. We ask
for the information on this form to carry out
the Internal Revenue laws of the United
States. You are required to provide the
information. We need it to ensure that you
are complying with these laws and to allow
us to figure and collect the right amount of
tax.
The time needed to complete and file this
form will vary depending on individual
circumstances. The estimated average time
is: Recordkeeping, 3 hr., 35 min.; Learning
about the law or the form, 1 hr., 00 min.;
Preparing and sending the form, 1 hr., 6
min.
If you have comments concerning the
accuracy of these time estimates or
suggestions for making this form simpler,
we would be happy to hear from you. You
can email us at *taxforms@irs.gov. (The
asterisk must be included in the address.)
Enter “Forms Comment” on the subject
line. Or you can write to Internal Revenue
Service, Tax Products Coordinating
Committee, SE:W:CAR:MP:T:T:SP, 1111
Constitution Ave. NW, IR-6526,
Washington, DC 20224. Do not send Form
W-8CE to this address. Instead, give it to
the payer.
