Form W-8IMY is used by non-U.S. entities acting as intermediaries or flow-through entities to certify their foreign status and provide required documentation on behalf of others. This form is critical for withholding agents to ensure proper documentation is in place and avoid incorrect withholding on payments passed through to underlying beneficial owners.

Businesses should request Form W-8IMY from any foreign intermediary, partnership, or flow-through entity before making U.S.-sourced payments. It’s especially important for cases involving complex ownership structures or multiple layers of entities. Collecting W-8IMYs early in the vendor onboarding process helps maintain IRS compliance and reduce the risk of default withholding.

Yes. Avalara 1099 & W-9 allows businesses to securely collect, validate, and store W-8IMY forms in a digital, compliant platform. The system supports the collection of required attachments, such as withholding statements or underlying W-8 forms, and helps keep records organized for IRS audits or reporting.