We have a person opening a checking account that gave us a SSN card that says "VALID FOR WORK ONLY WITH DHS AUTHORIZATION". I did the research and found that someone with this type SS card is a non-citizen who is only temporarily authorized to work in the US. So the question is, how do we decide if we need to get a W-8BEN on him or really, what DO we do? We have never seen one of these before.

If he is a non-resident alien (and I suspect that he is), you need to obtain the W-8BEN. There is a place on the form to document his SSN.

Resident aliens sign the W-9 form.

What is the difference between a non-resident alien and a resident alien?

The person either has a green card (Permanent Resident Card) or passes the "Substantial Presence Test". Look at the instructions for a W-8 for a description of that test.

Are you saying that we would need to have him sign a W9 if he is a resident alien or he should have already signed a W9 and, what, provides us with a copy?

I assume you are saying that this person with the green card or passes the test is a resident alien.

'bump"

The person is an NRA and you would get a W8 BEN if the account is interest bearing.
If the account is non-interest bearing you do not need a W8 BEN.

A Resident Alien is someone who has been approved to live and work in the US. They have an SSN.

A Non Resident Alien, an NRA, is a foreigner. He does not have an SSN.

Some, as the one you came across, may have permission to work for a limited period, so he gets a number for tax purposes.

A person with a green card is a resident alien and a U.S. Person and needs to complete a W-9, as applicable. A person that passes the "substantial presence test" is a U.S. Person and needs to complete a W-9, as applicable. Passing the "substantial presence test" does not mean that they are a resident alien. Immigration status and IRS status are two separate animals.

The above that RLCarey is explaining is what I think is confusing you...

His immigration status is not defined by his tax (IRS) status.

In your case you have an NRA that has been approved by DHS - Department of Homeland Security - to work in the US and therefore IRS has given him an SSN reporting number.

But you are back to ... if you are opening a Non Interest Bearing checking account, you do not need to complete a W8 BEN.

Thank you everyone for your input.

One more thing if I could...if he is a non-resident alien and the account is non interest bearing and we do not need the W8-BEN do we need anything at all? It seems like him just being an alien requires something regardless of his immigration status, IRS status or what type of account.

You need whatever ID your policy states for NRAs.

Our policy states that for NRAs we accept only a valid Passport.

Ok I think we've got it now. Thank you all so much for your help.