Withholding agents that fail to keep payee documentation current risk incorrect withholding, flawed reporting and IRS penalties, according to a report from Comply Exchange.
Comply Exchange explains that IRS withholding certificates, such as Forms W-8, are central to documenting payees and meeting US withholding tax and reporting obligations. These forms capture a payee’s name, tax identification number, permanent residence address and treaty claim details. Collecting this information at onboarding is critical, as gaps or errors can trigger fines and penalties from the IRS.
This is where the affidavit of unchanged status comes in. As Comply Exchange outlines, the document allows a taxpayer to affirm that the information and status declared on a previously submitted W-8 remain accurate, without the administrative burden of completing an entirely new form. For non-US individuals and entities receiving income from US sources, it streamlines compliance and confirms continued eligibility for treaty benefits.
The affidavit carries genuine legal weight. Comply Exchange warns that providing false information can result in severe penalties, including fines and criminal charges. Before signing, payees should review whether any significant changes have occurred since their last submission, and if so, update their tax forms accordingly. Consulting a tax professional or the IRS is advisable where uncertainty exists.
There is no standard format for the affidavit, though most versions request the same core details: the printed name as shown on Line 1 of the Form W-8, a penalties of perjury statement certifying the information is accurate and unchanged for the relevant period, the signature of the same person who certified the original form, and the date.
Comply Exchange also flags common pitfalls, including inaccurate or outdated information, false statements, missing signatures or dates, and late submission, all of which can create compliance issues or delays.
To illustrate the process, consider a foreign individual who submitted a W-8BEN to a US financial institution to certify foreign status and claim treaty benefits. A year on, rather than completing a fresh form, the individual can simply provide an affidavit confirming the original details remain valid, allowing the institution to maintain proper withholding and reporting.
Notably, an affidavit of unchanged status cannot currently be used with Form W-9. Comply Exchange also distinguishes affidavits from retroactive statements: while affidavits confirm nothing has changed, retroactive statements correct historical inaccuracies in previously reported data, with detailed explanations of the amendments. Neither document has a standardised format.
For withholding agents, a properly maintained affidavit process reduces risk, keeps records current and lightens the administrative load, making it a valuable tool in RegTech-driven tax compliance.
For more, read the full story here.
Copyright © 2026 FinTech Global
Copyright © 2018 RegTech Analyst
