Foreign individuals and enterprises must file W-8 forms with the Internal Revenue Service (IRS) to authenticate their nation of residence for tax reasons, confirming that they qualify for a reduced rate of tax withholding. Despite the fact that the IRS issues W-8 forms, they are solely sent to payers or withholding agents, not to the IRS. If you don’t submit the paperwork, you could have a hold full 30% rate that applies to foreign entities.