|
|
|
 |
Compliance Gurus
Lending Gurus
Security Gurus
Marketing Gurus
Technology Gurus
eBanking Gurus
|
Flagging Foreign Status Customer Accounts
by Ken Golliher, BOL Guru
BIO AND CONTACT INFO
Question: We are currently securing a W8-BEN from all foreign status customers and flagging their accounts with F for foreign. My question is: If the customer supplies us with an ITIN, do we remove the foreign status or just leave it as is? If the account is interest bearing, does the fact that the customer has an ITIN mean that he will be reporting interest earned by filling out a tax return at the end of the year? The reason I'm inquiring is if the F remains on the customer's account, we do not report the interest (I think).
Answer: The purpose of the W-8BEN on a bank deposit is to claim the status of a non resident alien and an exemption from information reporting. The fact that an NRA has a U.S. issued taxpayer identification number has no effect on that exemption. The NRA puts the number in line 6 of the form and, after 10/01/03, you retain the number for CIP purposes until 5 years after the account is closed.
First published on BankersOnline.com 08/25/03
Home | Compliance | Lending | Operations | Security | Marketing | Technology | eBanking
BOL Archives Privacy Policy Important Disclaimer Recommend This Site ! Contact Us
BankersOnline is a free service made possible by the generous support of our
advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all
banking professionals. Support our advertisers and sponsors by clicking
through to learn more about their products and services.
|
|
|
Print Friendly!
Email This Article!
Discuss NOW!