In December, the Internal Revenue Service (IRS) warned about a “new” scam involving a fake form W-8BEN. The scammers didn’t relent and have continued to send out variations on the scam. I received this version this week:
Of course, the scam isn’t really new – the scammers are just getting better. The W-8BEN scam, which targets non-resident aliens, has been making the rounds in one form or another for more than 10 years (downloads as a pdf). In 2014, the scammers made another big push with an email (subject: NEW YEAR-NON-RESIDENT ALIEN TAX EXEMPTION UPDATE) claiming to be from the IRS.
The latest version of the email closely mirrors the 2014 email. The email advises that IRS records “indicate that you are a Non-resident alien” and “you are exempted from United States of America Tax reporting and withholdings” which can be confirmed by completing a form W-8BEN.
There is a legitimate form W-8BEN but it is NOT the same as the form attached to that email. The form attached to the email is an old form W-8BEN from 2006 doctored to look legitimate. Here are a few ways the fake form is different from the original:
- At Part I, Questions 2 and 3, the fake form W-8BEN seeks clarification about the nature of the owner. This information is not requested on the real form W-8BEN. That’s likely because the real form W-8BEN is for individuals (entities use Form W-8BEN-E) but the fake W-8BEN seeks to include entities, too.
- At Part I, Question 7, the fake form W-8BEN asks you to note whether your tax ID is a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), or an (Employer Identification Number (EIN) by ticking a box. You won’t find that request on the real form – the IRS can tell the difference. An SSN is a nine-digit number issued by the Social Security Administration to U.S. citizens, permanent residents, and noncitizens with permission to work from the Department of Homeland Security. An ITIN is assigned to taxpayers who don’t qualify for an SSN. An EIN is an identifying number for corporations. (Find out more about the different kinds of TINs here.)
- You’ll see the most significant differences at Part II. On the real form, this section is used to claim tax treaty benefits. However, on the fake form W-8BEN, you’re asked to verify personal information. That information includes your profession along with your employer’s name and phone number; email address; spouse’s name and date of birth; Mother’s Maiden Name; passport information; and banking information, including the name of the bank, account number and date the account was opened. This information is not requested on a real form W-8BEN (downloads as a pdf).
- At Part III, the fake form asks you to confirm “notional principal contracts” which amounts to gibberish (it’s a term of art for swaps): that section doesn’t appear on the real form W-8BEN. Part III of the real form is the certification piece; the scammers moved this part to Part IV.
- The fake form W-8BEN asks you to fax back to the number on the form (1-570-796-6359) or send it via email (us1234@mail2world.com). This information does not appear on the real form W-8BEN. The fax number appears to be located in Scranton, PA, and the email address is generic (it’s the equivalent of sending something to an aol.com address). But most importantly, you would not fax or email the real form W-8BEN to the IRS. The instructions explain that you are to “provide Form W-8BEN to the withholding agent or payer before income is paid or credited to you.” In other words, you would treat a real W-8BEN much the same way as you would a form W-9: give it to the withholding agent or payer, not the IRS.
The email that accompanies the form asks that you return the form along with a copy of the photo page of your passport or “you will lose your Non-resident status and be listed as undocumented.” This isn’t true – of course – and never send your passport information to someone you don’t know.
And since the scammers realize that you might get a couple of these emails and get suspicious, they tack on the following: “If you should receive multiple notifications,it means previous filled out forms was not properly filled and as such,we need you to refill needed columns and re-fax or email to us using the details at the bottom of W-8BEN.” (Spelling and grammar issues are intentional: that’s how the information appears on the form.)
Clearly, this information is an attempt to steal your identity. Don’t become a victim. So what happens if you receive this email? The IRS offers these tips:
- Do not reply.
- Do not open any attachments.
- Attachments may contain malicious code that will infect your computer.
- Do not click on any links.
- If you clicked on links in a suspicious email or phishing website and entered confidential information, visit our identity protection page.
- Forward the email as-is, to us at phishing@irs.gov.
- After you forward the email and/or header information to us, delete the original email message you received.
Finally, remember that the IRS doesn’t initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels.
