W8-Ben tax forms for foreign investors - does it need proof of ID with it for Canadians?

As someone who has been helping clients with cross-border investment documentation for years, I can clarify this for you. Generally, when you submit a W-8BEN form as a Canadian resident investing in US securities, you typically don't need to provide separate identification documents with the form itself. The W-8BEN is basically a certification document that tells US financial institutions you're a foreign person (or entity) and allows you to claim tax treaty benefits - in your case, the US-Canada tax treaty which usually reduces withholding taxes on dividends from 30% to 15%.

I went through this exact headache last year and was so confused until I found taxr.ai (https://taxr.ai). I had multiple US investments through different Canadian brokers and each one seemed to have different requirements for the W-8BEN. I uploaded my forms to taxr.ai and it analyzed everything, pointed out where I had inconsistencies between forms, and showed me exactly what was needed. What really helped was that the system spotted that I was using slightly different versions of my name on different forms (middle initial on one, full middle name on another) which could have caused issues. It showed me exactly what the IRS would see when comparing my documents.

Just wanted to follow up on my question about taxr.ai. I ended up trying it for my rental income forms and it was seriously helpful. I had been filling out my W-8ECI forms wrong for two years! The system flagged exactly where I was making mistakes and showed me the correct way to report my rental income to avoid double taxation. It even generated a letter I could send to the property management company explaining the proper withholding rate. Definitely worth checking out if you're dealing with any US-Canada tax form situation.

If you're having trouble getting a clear answer from your broker about W-8BEN requirements, you might want to try Claimyr (https://claimyr.com). I was getting conflicting info about whether I needed to provide ID with my W-8BEN, so I used their service to actually speak with someone at the IRS. They got me connected in about 20 minutes when I had been trying for days on my own. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c - basically they navigate the IRS phone system for you and call you back when they've got an agent on the line. The agent clarified exactly what was needed for my situation.

I need to eat my words about Claimyr. After posting my skeptical comment, I was desperate enough to try it for an issue with my W-8BEN that my broker couldn't resolve. I figured I'd wasted money on dumber things before. To my complete shock, I got a call back in 15 minutes with an actual IRS international tax specialist on the line! The agent confirmed that for standard broker accounts, the W-8BEN alone is sufficient and explained that the confusion happens because some financial institutions have their own additional KYC (Know Your Customer) requirements beyond what the IRS requires. Got my issue resolved in one call after weeks of frustration.

One thing nobody mentioned is that some US financial institutions DO require ID verification along with the W-8BEN, not because the IRS requires it, but because of their own internal compliance policies. I had to provide a notarized copy of my passport when I opened an account with a smaller US brokerage even though my main Canadian broker never asked for it.

Just be super careful filling out the form correctly! I made a small mistake on my W-8BEN (I used my mailing address instead of my permanent residence address) and ended up having 30% withheld instead of the treaty rate of 15% on all my US dividends for almost a year before I figured out the problem.

I'm dealing with a similar situation right now - Canadian investor with US stocks through TD Direct Investing. After reading through all these responses, I think I understand the confusion now. The W-8BEN form itself doesn't require ID documents from the IRS perspective, but each brokerage has its own internal policies. What I found helpful was calling my broker directly and asking specifically what THEY require, not what the IRS requires. TD told me they only need the electronic W-8BEN form since they already have my identity verification from when I opened the account. But when I tried to open a small account with Interactive Brokers, they wanted additional documentation. For anyone still confused, I'd suggest: 1) Check with your specific broker about their requirements, 2) Make sure you use consistent information across all your forms (name, address, etc.), and 3) Double-check that you're claiming the right tax treaty benefits. The 15% vs 30% withholding rate difference is huge over time!

As a Canadian who's been through this process with multiple brokerages, I can share what worked for me. The key insight from this thread is absolutely correct - it's institution-specific, not IRS-specific. For what it's worth, I've dealt with Questrade, Wealthsimple Trade, and RBC Direct Investing. Questrade and RBC only needed the electronic W-8BEN form (no additional ID), while Wealthsimple had some additional verification steps but nothing too onerous. One tip I learned the hard way: if you have accounts with multiple brokers, make sure you're using the exact same information on all your W-8BEN forms. I had slight variations in how I wrote my address across different accounts and it caused some confusion during my tax filing. The CRA and IRS systems do cross-reference this stuff. Also, keep copies of all your submitted forms and confirmation emails. You'll need them for your Canadian tax return to claim the foreign tax credit for any US withholding taxes paid.