The United States Internal Revenue Service (IRS) has introduced new legislation the result of which requires that any client of DGM Bank & Trust Inc. who is a US citizen/resident must complete form W-9, which includes the Taxpayer Identification Number. This will exempt the account from any withholding or backup withholding tax on US source income or broker dispositions. Details of these transactions, however, must still be reported through to the IRS. If disclosure of US client identity is not made, any US source investment income and the full amount of broker dispositions will be subject to the full backup withholding tax at 31%.
A copy of form W-9 is available for you to download below. All US citizens/residents must complete and return this form to us with their account application forms. A summary report of any income received in an account for a US citizen or resident is still required to be filed with the IRS commencing in 2001.
DGM Bank & Trust Inc. does not provide any tax advice. For tax advice, it is suggested that you discuss the effect of these new regulations with your tax advisor.