Exemption from FATCA reporting code (Form W-9): what to enter

Form W-9 is the form a US person gives to a bank, broker or other payer to confirm their name, US taxpayer identification number and US status. Box 4 asks for two exemption codes: one for backup withholding and one for "exemption from FATCA reporting". The second one causes a lot of confusion, particularly when a UK bank sends a W-9 to an American customer.

The short answer for individuals

If you are a US citizen or green card holder completing a W-9 for yourself, leave the FATCA exemption box blank. The exemption codes apply to particular types of organisation. An individual is a "specified US person" for FATCA purposes, and there is no code that exempts an individual from FATCA reporting.

Leaving it blank is correct, not an omission. Entering a code you do not qualify for makes the certification you sign in Part II inaccurate.

What the codes A to M cover

The IRS instructions list who is not a specified US person and is therefore exempt from FATCA reporting. In summary:

• A — tax-exempt organisations under section 501(a) and individual retirement plans
• B — the United States and its agencies
• C — US states, territories and their political subdivisions
• D — corporations whose stock is regularly traded on an established securities market
• E — members of the same expanded affiliated group as a D corporation
• F — registered dealers in securities, commodities or derivatives
• G — real estate investment trusts
• H — regulated investment companies and registered investment companies
• I — common trust funds
• J — banks
• K — brokers
• L — certain charitable and split-interest trusts
• M — tax-exempt trusts under section 403(b) or 457(g) plans

Why the box is there at all

FATCA reporting about US persons is carried out by foreign financial institutions, such as UK banks and investment platforms. The IRS instructions explain that a US bank maintaining an account in the United States does not need to collect the FATCA code at all, and a requester may pre-fill the box with "N/A". The box matters only for accounts maintained outside the United States, and only for the organisations listed above.

When a UK bank asks you for a W-9

UK banks must identify US account holders under the UK–US FATCA agreement. If you are a US person, the bank may ask for a W-9 or its own self-certification form with your US taxpayer identification number. It then reports the account to HMRC, which passes the information to the IRS.

What this means for you:

• Giving the bank a W-9 does not create a tax bill. It does mean the IRS can see the account, so your FBAR and, if the thresholds are met, Form 8938 should already include it.
• If you have no Social Security number, you may need to obtain one before you can complete the form.
• If you are not a US person, you complete a W-8BEN instead, not a W-9.

Frequently asked questions

Am I exempt from FATCA reporting because I live in the UK? No. Living abroad changes the Form 8938 thresholds, but it does not make a US individual exempt from FATCA.

What is my "exemption from FATCA reporting code" if I am a sole trader? A sole trader is an individual, so the box is normally left blank.

Does a FATCA exemption code affect backup withholding? No. The backup withholding exemption is a separate code in the same box, and the IRS instructions state that one does not affect the other.