A new partner never gave us their foreign-status certificate. Can we just treat them as foreign and over-withhold to be safe?
We admitted a new investor to our partnership and onboarding got messy. We know the person is foreign in a practical sense, but the actual withholding file is incomplete because we never received the documentation the tax team asked for. Now we are approaching reporting deadlines and one manager wants to simply over-withhold and clean it up later.
I am uncomfortable with that because it feels like we are making the classification call from memory rather than from the partner file. At the same time, I do not want the partnership exposed because we waited too long to get the paperwork. I need a better way to think about the risk.
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