Mastering the RAIVS Request for Tax Information Documents: A Complete Guide
If you’re a financial institution that deals with US taxpayers, you’ll have encountered the Request for Taxpayer Identification Number (TIN) and Certification (IRS Form W-9) and the Request for Taxpayer Identification Number and Certification (IRS Form W-8BEN) in the course of your business.
The IRS has introduced a new Request for Applicant Identification Number and Certification (RAIVS) form that is replacing the W-9 and W-8BEN forms in modernizing the tax identification system. This new form allows financial intermediaries to gather and verify a wider range of tax identification information from foreign and US clients, streamlining the identification process and improving efficiency.
If you’re struggling to get your head around the RAIVS form, don’t worry. In this article, we’ll cover everything you need to know about this new form, including what it is, who can use it, the differences between it and the old forms, and the benefits of using it.
What is the RAIVS Form?
The Request for Applicant Identification Number and Certification (RAIVS) is a new form introduced by the IRS to modernize the tax identification system. This form allows financial intermediaries to collect and verify tax identification information from US and foreign clients. The RAIVS form streamlines the identification process, and it replaces the W-9 and W-8BEN forms.
Who can use the RAIVS Form?
The RAIVS form is used by various financial institutions like banks, brokers, investment firms, and other organizations involved in financial transactions with US taxpayers or non-US taxpayers with US-sourced income or assets.
Key Differences between RAIVS and Old Forms
The RAIVS form has several differences from the old forms, and some of the significant differences include:
– The RAIVS form replaces both the W-9 and W-8BEN forms, while each old form applied to a specific tax situation.
– Unlike the W-9 form that only requires US taxpayer identification information, the RAIVS form requires detailed information about non-US taxpayers, including their foreign TIN, date of birth, and country of birth.
– The RAIVS form also enables financial intermediaries to verify the client’s tax identification number by comparing it with the authoritative source in the IRS TIN Matching Program, reducing errors in identifying clients and improving the reliability of tax information.
Benefits of using the RAIVS Form
The RAIVS form offers several benefits to financial intermediaries, including:
– Streamlining the identification process: The RAIVS form replaces the multiple forms that created confusion and delays, simplifying the identification process and saving time.
– Reduction in errors: The RAIVS form minimizes errors in identifying clients, reducing the need for IRS correspondence to correct identification errors.
– Eases compliance burdens: By using a single form to collect both US taxpayer identification information and foreign taxpayer identification information, the RAIVS form reduces the compliance burden on financial intermediaries, simplifying record-keeping and reporting.
Conclusion
The RAIVS form is an essential tool for financial intermediaries who transact business with US taxpayers or non-US taxpayers with US-sourced income or assets. It streamlines the identification process, reduces errors, and eases compliance burdens for intermediaries. With this guide, we hope you now have a better understanding of the RAIVS form and how it differs from the W-9 and W-8BEN forms.
