IRS Taxes and W-8/W-9 Realities

Tax Guide

IRS, Taxes & W-8/W-9 Realities

EchoLegalUpdated: January 25, 2026Reviewed by a licensed attorney

Attorney-ReviewedUnited StatesUpdated February 17, 2026

W-8BEN is a tax form for non-US persons to certify foreign status and claim tax treaty benefits, avoiding 30% withholding. W-9 is for US persons only. Turkish freelancers and businesses working with US clients should provide W-8BEN (individuals) or W-8BEN-E (entities) to their US payers.

This guide provides an overview of common US tax forms and concepts relevant to Turkish entrepreneurs working with US clients or operating US entities. This is not tax advice—consult a qualified tax professional for your specific situation.

Important: This content is for informational purposes only and does not constitute tax, legal, or financial advice. Tax laws are complex and change frequently. Always consult a qualified CPA, tax attorney, or enrolled agent for advice specific to your situation.

Scope & Method

This entry addresses federal tax forms and withholding obligations relevant to non-US persons receiving payments from US sources. It does not cover state-level tax obligations, individual tax return preparation, or jurisdiction-specific treaty analysis. Statutory and regulatory sources are presented as the normative framework; agency guidance and judicial interpretation are addressed in separate sections below.

Version: v1.0Last Reviewed: 2026-02-17Foundational

Judicial Deference Framework

Judicial deference describes the weight courts give to an administrative agency's interpretation of a statute or regulation it administers.

Chevron deference: Applies when Congress has delegated authority to an agency and the agency's interpretation is reasonable. Courts defer unless the statute is unambiguous.
Skidmore deference: A lesser standard based on the persuasiveness of the agency's reasoning, consistency of its interpretation, and expertise demonstrated.
Non-binding guidance: Agency materials such as internal manuals (e.g., IRM), FAQs, opinion letters, and informal guidance do not carry the force of law. Courts may consider them but are not bound by them.
Application on this platform: EchoLegal labels content by authority level (statute, regulation, agency guidance, judicial interpretation). Courts may assign different weight to these sources than implied by their presentation order.

This framework is provided for contextual understanding and does not constitute legal advice regarding any specific matter.

1. W-8 vs W-9: Who Signs What?

When you receive payment from a US company, they typically need to collect tax documentation from you. The form you sign depends on your tax status.

W-9

Request for Taxpayer Identification Number

Who signs: US persons (citizens, residents, US entities)

When: Before receiving payment from a US payer. The payer uses this to report payments to the IRS.

Key info provided: Name, address, TIN (SSN or EIN), entity type, certification

W-8BEN

Certificate of Foreign Status (Individuals)

Who signs: Foreign individuals (non-US persons)

When: To claim foreign status and potentially reduced withholding under a tax treaty.

Key info provided: Name, country of citizenship, foreign TIN, treaty claim (if applicable)

Validity: Generally valid for 3 years from signing date

W-8BEN-E

Certificate of Foreign Status (Entities)

Who signs: Foreign entities (non-US corporations, partnerships, etc.)

When: Same as W-8BEN, but for entities. More complex due to FATCA requirements.

Note: This form is significantly longer and requires entity classification under Chapter 3 and Chapter 4 (FATCA) status.

Your Status	Form
US citizen or resident	W-9
US LLC (domestic)	W-9
Foreign individual (e.g., Turkish citizen in Turkey)	W-8BEN
Foreign entity (e.g., Turkish company)	W-8BEN-E

2. EIN vs SSN vs ITIN

The IRS uses different identification numbers for different purposes. Understanding which one you need is essential.

SSN (Social Security Number)

Issued to US citizens and individuals authorized to work in the US. Used for personal tax filing and employment. You cannot obtain an SSN without work authorization.

EIN (Employer Identification Number)

Issued to businesses, including LLCs and corporations. Required for opening business bank accounts, hiring employees, and filing business tax returns. Non-residents can obtain an EIN for their US LLC without an SSN.

ITIN (Individual Taxpayer Identification Number)

Issued to individuals who have US tax filing obligations but are not eligible for an SSN. This includes foreign nationals with US-source income. Application requires Form W-7 and supporting documentation.

Common scenario: A Turkish entrepreneur forms a US LLC. The LLC gets an EIN. The individual owner may need an ITIN if they have personal US tax obligations, but the EIN alone is sufficient for many business purposes.

3. 1099s and Backup Withholding

What is a 1099?

Form 1099 is used by US payers to report various types of income paid to recipients. The most common for contractors is 1099-NEC (Non-Employee Compensation). If you provide services to a US company as a contractor, they may issue you a 1099 at year-end.

Do foreign persons receive 1099s?

Generally, no. If you properly submitted a W-8BEN or W-8BEN-E certifying foreign status, you should not receive a 1099. Instead, the payer may report payments to you on Form 1042-S if withholding applies.

What is backup withholding?

If a US payer cannot verify your tax status (you didn't provide a valid W-9 or W-8), they may be required to withhold 24% of payments as "backup withholding." This is sent to the IRS. You can potentially recover it by filing a US tax return.

Withholding on foreign persons

Different from backup withholding, certain payments to foreign persons are subject to 30% withholding (or a reduced rate under a tax treaty). This commonly applies to dividends, interest, royalties, and certain service fees. The US-Turkey tax treaty may reduce these rates for specific income types.

4. Tax Filing Triggers for Non-Residents

This is a high-level overview only. Tax obligations depend on many factors including income type, amount, treaty benefits, and your specific circumstances. Consult a qualified tax professional.

When might a non-resident have US filing obligations?

Common triggers include:

US-source income: Income earned from US sources (US clients, services performed in the US, US real estate, etc.)
Trade or business in the US: Having a "trade or business" in the US can create filing obligations, even without physical presence
US LLC ownership: Depending on the LLC's activities and structure, filing may be required
FIRPTA: Sale of US real property interests

Common forms for non-residents

Form 1040-NR: US Nonresident Alien Income Tax Return
Form 5472: Information return for 25% foreign-owned US corporations or foreign-owned disregarded entities
Form 1120: If the LLC elected corporate taxation

US-Turkey Tax Treaty

The US and Turkey have a tax treaty that may affect your obligations. Common benefits include:

Reduced withholding rates on dividends, interest, and royalties
Exemptions for certain business profits if you don't have a "permanent establishment" in the US
Rules to prevent double taxation

Treaty benefits often require proper documentation and may need to be claimed on tax returns.

5. Common Misconceptions

"I don't need to file anything if I'm not in the US"

Reality: Physical presence is not the only trigger. US-source income, US business activities, or US entity ownership can create filing obligations regardless of where you are.

"An LLC means no taxes"

Reality: An LLC is a legal structure, not a tax exemption. Depending on how it's taxed (disregarded entity, partnership, or corporation), and the nature of income, taxes may be owed.

"The tax treaty eliminates all US taxes"

Reality: Tax treaties reduce or modify tax obligations—they don't eliminate them entirely. Proper documentation and filings may still be required.

"W-8BEN means no withholding"

Reality: W-8BEN establishes foreign status and may allow reduced treaty rates, but some income types still have withholding. The form itself doesn't eliminate all withholding.

"I can ignore the IRS if I'm overseas"

Reality: The IRS has international enforcement mechanisms. Unfiled returns can result in penalties, and certain banks report account holder information under FATCA.

6. Frequently Asked Questions

I formed a US LLC but have no US income yet. Do I need to file anything?

Potentially yes. Even with no income, certain informational returns may be required (e.g., Form 5472 for foreign-owned disregarded entities). State annual reports may also be due. Consult a tax professional.

My US client is asking for a W-9 but I'm in Turkey. What do I do?

If you're a Turkish citizen/resident without US tax status, you should provide a W-8BEN (individual) or W-8BEN-E (entity) instead. Explain to the client that W-9 is for US persons only.

What happens if I don't provide any tax form?

The payer may apply 24% backup withholding on your payments, or refuse to pay you until documentation is provided.

Do I need an ITIN if I have an LLC with an EIN?

Not necessarily. The EIN is for the LLC. You may need an ITIN personally if you have individual US tax obligations, but many non-resident LLC owners don't need one initially.

How does the US-Turkey tax treaty help me?

It may reduce withholding rates on certain income (dividends, interest, royalties), exempt business profits if you don't have a US permanent establishment, and prevent double taxation. You typically need to claim treaty benefits on your tax forms.

Can I do my US taxes myself?

International tax situations are complex. While simple situations may be manageable, most non-resident business owners benefit from working with a CPA or tax attorney experienced in cross-border taxation.

7. Sources & Official Links

•

IRS – Form W-9

Official W-9 instructions

•

IRS – Form W-8BEN

Certificate of Foreign Status for individuals

•

IRS – Form W-8BEN-E

Certificate of Foreign Status for entities

•

IRS – Tax Treaties

US tax treaty information including Turkey

•

IRS – Taxpayer Identification Numbers

EIN, SSN, ITIN explained

•

IRS – FATCA Information

Foreign Account Tax Compliance Act

Judicial Interpretation Framework

Version: v1.0Last Reviewed: 2026-02-19Foundational

8. Judicial Interpretation (Selected)

The entries below distinguish binding authority from persuasive guidance. Binding authority (statutes, regulations) controls; persuasive authority (agency guidance, IRS publications) informs but does not override higher-tier sources in the event of conflict.

26 U.S.C. § 1441

Binding

Imposes a 30% withholding obligation on US-source payments to nonresident aliens. This is the statutory foundation; treaty rates reduce but do not eliminate the underlying obligation.

26 U.S.C. § 7701(b)

Binding

Defines "resident alien" and "nonresident alien" for federal tax purposes using the substantial presence test and green card test. Statutory definition controls over informal guidance.

26 C.F.R. § 1.1441-1

Binding

Treasury regulation implementing the withholding requirement. Specifies documentation (W-8 series), timing, and procedures for withholding agents.

U.S.–Turkey Income Tax Treaty (1996)

Binding

Bilateral treaty reducing withholding rates on certain income categories (dividends, interest, royalties) between the US and Turkey. Treaty benefits must be affirmatively claimed.

IRS Publication 515 (Rev. 2024)

Persuasive

Agency publication summarising withholding rules for foreign persons. Useful reference but does not have the force of law; where it conflicts with statute or regulation, the higher source controls.

How courts treat conflicts between statute, regulation, and guidance

–Where the Internal Revenue Code imposes a 30% withholding rate and a treaty provides a lower rate, the treaty rate applies — but only if the payee provides valid documentation (W-8BEN or W-8BEN-E) claiming treaty benefits.
–IRS publications may lag behind statutory or regulatory changes. If Publication 515 states a rule that conflicts with a more recent amendment to § 1441, the amended statute governs.
–Treaty provisions are self-executing in the US under the Supremacy Clause, but the IRS may require specific procedural steps (e.g., filing Form 8833) to claim treaty-based positions.

What this resolves

✓Which form a foreign individual vs. a foreign entity must sign (W-8BEN vs. W-8BEN-E).
✓The default 30% withholding rate for payments to foreign persons under § 1441.
✓That the US-Turkey treaty may reduce (not eliminate) withholding on specific income types.

What this does NOT resolve

✗Individual eligibility for specific treaty benefits (fact-specific; requires professional analysis).
✗Whether a particular payment constitutes US-source income (depends on the nature of the service and where it is performed).
✗State-level income tax obligations, which exist independently of federal withholding rules.

9. Interpretive Notes

These notes summarise how binding and persuasive authority interact for the topics covered on this page. For the institutional standard governing source precedence, see the references below.

Where a statute and agency guidance conflict, the statute controls. Regulations issued under proper statutory authority have the force of law; informal guidance (revenue rulings, instructions, publications) does not.

→Charter — Authority Precedence →Citation Guide & Contributor Standards

10. Conflict Resolution & Authority Precedence

When multiple legal instruments address the same question, a fixed hierarchy determines which source controls. The following matrix summarises the normative weight of each instrument type, its capacity to override lower-tier sources, and typical judicial treatment.

Instrument Type	Normative Weight	Can Override	Typical Court Treatment
Constitution	Supreme	All subordinate instruments	Controls unconditionally
Federal Statute	Binding	Regulations, guidance, instructions	Applied as enacted; regulations must conform
Treaty	Binding	May modify statutory rates where applicable	Co-equal with statute; later-in-time rule applies
Federal Regulation	Implementing	Guidance and instructions only	Force of law if issued under proper authority
Agency Guidance / Revenue Ruling	Interpretive	Nothing; cannot override higher sources	Considered but not binding on courts
Form Instruction / Publication	Non-binding	Nothing	Informational only; no judicial deference

If conflict arises, courts generally…

apply the higher-ranking source. A statute prevails over a conflicting regulation; a regulation issued under proper delegated authority prevails over informal agency guidance. Where a statute and a treaty conflict, courts apply the "later-in-time" rule: the more recently enacted instrument controls. Regulations that exceed their statutory mandate are struck down as ultra vires. Agency publications and form instructions receive no judicial deference and are treated as informational aids, not as authoritative statements of law.

Not resolved by this hierarchy

–Factual determination of whether a payee qualifies as a "resident" or "nonresident" under the substantial presence test.
–Classification of specific income types (e.g., whether a payment constitutes "royalty" or "service fee" under the treaty).
–Procedural requirements for claiming treaty benefits on specific return forms.
–Evidentiary burden in disputes over withholding agent liability.

11. Illustrative Judicial Treatment (Selected)

The following references illustrate how federal courts have applied the precedence principles described above. These are selected for doctrinal relevance; they do not constitute a comprehensive survey of case law.

Boulez v. Commissioner, 83 T.C. 584 (1984)

Tax treaty provisions operate to reduce statutory withholding rates only when properly claimed. The taxpayer bears the burden of establishing entitlement to treaty benefits through adequate documentation.

National Muffler Dealers Association v. United States, 440 U.S. 472 (1979)

Courts evaluate the validity of Treasury regulations by examining whether the regulation harmonises with the statute's plain language, legislative history, and underlying purpose. A regulation that contradicts the statute it purports to implement is invalid.

Sources are presented in normative order. Lower-tier materials do not override higher-tier authority.

–
26 U.S.C. § 1441— Withholding of tax on nonresident aliens
–
26 U.S.C. § 7701(b)— Definition of resident alien and nonresident alien
–
26 C.F.R. § 1.1441-1— Requirement for the deduction and withholding of tax on payments to foreign persons
–
U.S.–Turkey Income Tax Treaty (1996)— Convention for the avoidance of double taxation
–
IRS, Instructions for Form W-8BEN— Certificate of Foreign Status of Beneficial Owner
–
IRS, Instructions for Form W-9— Request for Taxpayer Identification Number and Certification
–
IRS Publication 515— Withholding of Tax on Nonresident Aliens and Foreign Entities

Related Resources

LLC Formation Guide

Step-by-step guide to forming a US LLC

Essential Contracts

Must-have legal documents for US business

W-8/W-9 Decision Map

Quick reference for which form to use

Legal Library

Browse all guides and resources

Author

EL

EchoLegal Legal Team

Licensed in New York

Oversees editorial standards and legal accuracy for all EchoLegal content.

Licensed in New York. This content is provided for general informational purposes and does not constitute legal advice.

Cite This Entry

Standard

EchoLegal, “IRS Taxes and W-8/W-9 Realities,” EchoLegal Legal Encyclopedia, v1.0 (last updated Feb 17, 2026), https://echo-legal.com/en/irs-vergiler-ve-w8-w9-gercekleri.

Bluebook

IRS Taxes and W-8/W-9 Realities, EchoLegal Legal Encyclopedia (last updated Feb 17, 2026), https://echo-legal.com/en/irs-vergiler-ve-w8-w9-gercekleri.

Citation ID:ecl-gde-00013

This content is for informational purposes only and does not constitute tax, legal, or financial advice. Tax laws are complex and change frequently. The information provided may not reflect current law or IRS guidance. Always consult a qualified CPA, tax attorney, or enrolled agent for advice specific to your situation. EchoLegal is not a law firm, accounting firm, or tax advisory service.