4 Takeaways from the SIFMA 2021 Global Tax Reporting Symposium

By Rasheed Khan
Read Time: 2 minutes
4 Takeaways from the SIFMA 2021 Global Tax Reporting Symposium

On October 19 – 20, SIFMA hosted their 2021 Global Tax Reporting Symposium, thank you to all of the speakers and moderators that presented at the conference. I would also like to thank Kimberly Schoenbacher – IRS Director of Field Operations, John Sweeney – IRS ACCI, Sasha Lanes – IRS EPSS Director and Subin Seth - IRS ACCI for a very well presented updates. 

2021 SIFMA Global Tax Reporting 4 Key Takeaways

I have summarized my top 4 tax takeaways Take away topics that I found most notable from the SIFMA Tax Reporting sessions. Below I get into some additional details on the topics and what I think people would have found very interesting.  

  • Revisions to forms
  • Updates to 1446(f)
  • Updates to 871(m)
  • Updates on Regulations for Digital Assets

I was very interested in the timing of the updates related to the Form W-8IMY and the 1446(f) regulations delay since many of the updates to the forms released are in relation to the 1446(f). Some of the other useful things identified were the expectations of a derivative instrument (e.g. Swap) over a partnership that would be subject to 871(m).


Tax Takeaway 1: 1446(f) – Enforcement of rules delayed until 2023

The delay in the requirements for 1446(f) is great as it allow financial institutions the time needed to develop systems and processes to execute the proper withholding and reporting. This also allows the current focus to be on implementing the new forms properly with good validations, processes and procedures related to the below bullets.  

  • New QI agreement scheduled for 2023 renewals

  • Rider may be available for QI’s not renewing in 2023

  • Regulations will be updated to reflect the delay
  • Instructions being updated to The instructions provide a new process for NQIs to provide a withholding statement (and accompanying documentation)
  • Industry is still looking for better guidance on identifying foreign PTP with income in scope


Tax Takeaway 2: 871(m) – latest updates

871(m) regulations require transparency on complex products where most tax processes have no visibility. One interesting outcome of the conversation is that the IRS expected that institutions creating these products would hold the physical equity to ensure proper classification of the dividends portion of any combined distribution. This is important related to holding PTP synthetically. 

  • Derivatives over a covered partnership would require 871(m) withholding on dividends equivalent payments

  • New Schedule K-2/K-3 related to Form 1065 for QDD related transactions and tax

  • No specific guidance on when regulations to address comment letter on combination rules will be released


Tax Takeaway 3: Draft and Finalized 2021 W8 Form Changes

Forms present the baseline for all of the withholding and reporting that is executed by most institutions. The latest forms released don’t only address requirements for 1446(f) but also provide some changes based upon comments made to the IRS that should ease customer completion of the forms. I have highlighted some of these changes. 

Forms Released

  • W-8BEN

    • Added new check box where FTIN is not legally required
    • Replaced capacity field with a capacity check box before the signature
    • Added certification for 1446(f) transfers within perjury section of form
  • W-8BEN-E
    • Chapter 3 classification for Foreign Government split between Controlled Entity and Integral Part
    • Added new check box where FTIN is not legally required
    • Added No LOB article in treaty checkbox


  • W-8IMY
    • Permits Territory FIs to be treated as a U.S. Person for purposes of PTP transfers and PTP distributions

Under Review

  • W-8EXP
    • Form being revised to cover qualified foreign pension funds

IRS has proposed requirements for filing for Form 1042 electronically


Tax Takeaway 4: 2021 Regulations for Digital Assets including Crypto Tax Reporting

Although the rules are still not final there is an expectations that the current legislation will move forward. There have been changes to the Infrastructure Bill but none of these have modified the new reporting requirements. As we move forward with deploying solutions I have highlighted 2 notable clarifications made in the conference. 

  • Clarification of ordinary income derived from forks that result in the ascension of wealth

  • Identification of exchanges that do not qualify as like-kind exchange under the Section 1031 of the code


TAINA continues to track and monitor these changes and updates to identify and deliver effective and efficient solutions to the industry and meet our clients expectations. Visit our website for more information on our 1446(f) solution and other changes and enhancements we have and will be making to our FATCA and CRS Validation Platform.

Thank you again to the SIFMA team, for connecting TAINA to the conference. We look forward to attending it again next year.

Rasheed Khan

TAINA Technologies

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