A US Resident Alien (who meets the substantial presence test)with an ITIN should be signing W-9 form, correct?

If you read the instructions to the W-8 and W-9 forms, a resident alien can sign either of them. A resident alien may have a SSN or ITIN. This is a good question. I'm not sure how you know for sure but the customer should be making that decision. The trouble is, I'm not always sure if the customer knows!

A resident alien is a resident alien and fills out a W-9. There is no substantial presence test for some one that has a green card. So I guess it makes a difference on how you define the terms. A non-resident alien that meets the substantial presence test also completes a W-9.

Agreed; a resident alien must execute a W-9 or its equivalent, not a W8-BEN.

I would have said an ITIN was not appropriate on a W-9, but the instructions acknowledge that it is acceptable.

This is what confuses me on Non-U.S. citizens. The certifications on a W-9 form- #3 states (I am a U.S. citizen or other U.S. person. ITIN customers and Resident Aliens can be residents but not U.S. citizens. Are they considered "Other U.S. person to sign the W-9? Or would they execute a W-8Ben vs. a W9. (We were crossing out #3 and then having ITIN customers sign the W-9) because if they have an ITIN which is NOT used for "Work Purposes" but only for filing Information Returns wouldn't we submit a 1099INT on them? The W8-BEN waives the filing. Would like to know what others do.

We ask questions: Do you have a U. S. Taxpayer Identification Number? If no, execute for W8BEN. If yes, are you a U.S. Citizen? If yes, sign form W-9. If no, are you a resident alien? If yes, sign form W-9. If no, sign form W8-BEN. It is pretty straight forward and the last thing you want to get in the middle or and probably shouldn't, is the substantial presence test. If they have an ITIN we put it on the W8BEN. The answers are fairly simple if put this way and we have very little confusion. Hope this helps.