Hi Robin. I received a quick response. Can you tell me if this is correct? See below. Unfortunately I don't understand too much of this maybe you can put it into layman's terms for me. Basically I need assurance that I am not doing something wrong here.
No, W8 is used for shares regularly traded and listed on stock exchange, not used for private placements. See in bold below: The distribution is on stock regularly traded on a securities market in the United States.
Who Must File
A buyer or other transferee of a U.S. real property interest, and a corporation, qualified investment entity, or fiduciary
that is required to withhold tax, must file Form 8288 to report and transmit the amount withheld. If two or more persons are joint transferees, each is obligated to withhold. However, the obligation of
each will be met if one of the joint transferees withholds and transmits the required amount to the IRS.
Do not use Forms 8288 and 8288-A
for the following distributions.
1. A distribution of effectively connected income by a publicly traded
partnership is subject to the withholding requirements of section 1446.
2. A distribution from a trust that is regularly traded on an established
securities market is subject to section 1445, but is not reported on Forms 8288 and 8288-A.
3. A distribution by a qualified investment entity to a nonresident alien
or a foreign corporation is treated as a dividend and is not subject to
withholding under section 1445 as a gain from the sale or exchange of a U.S. real property interest if:
a. The distribution is on stock regularly traded on a securities market in the United States