Our contractor lives abroad but is a U.S. citizen. Should we collect a W-8 instead of a W-9?

A U.S. citizen generally documents U.S. person status using Form W-9 even when living abroad. A foreign address or foreign bank account does not by itself justify Form W-8. The payer must then evaluate the ordinary information-reporting rules for the payment and recipient.

A specific business-owner situation

A software consultant moves permanently overseas but retains U.S. citizenship. The customer switches the vendor record to foreign solely because the invoice has an overseas address.

Illustrative example, not a client result.

What to establish before filing

1. Confirm tax status rather than residence alone.
2. Request the appropriate taxpayer certificate.
3. Apply the payment's information-reporting requirements.

Which fact changes the answer?

A non-U.S. individual and a U.S. citizen abroad have different documentation starting points. Immigration location does not replace tax-status analysis.

A mistake to avoid

Do not assume a foreign residence exemption makes the recipient a foreign person for payer documentation.

Records that support the decision

• Signed Form W-9.
• Contract and payment totals.
• Documented status communications.

The decision to document

Correct the vendor master record and coordinate any prior reporting errors without inventing a foreign withholding exemption.

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Related questions

• Our foreign vendor's W-8 expired before payment. Can we keep using last year's withholding treatment?
• We promised a foreign vendor a net payment. Who bears any U.S. withholding tax?

Sources and editorial context

• IRS Publication 515: foreign-person withholding

General educational information prepared with AI assistance. No individual professional review is claimed. Apply the relevant tax-year rules to the actual records. Editorial policy · AI disclosure.