Okay, if a customer has a NON-Interest bearing account, we should not require them to complete a W8 BEN, correct??

We obtain a W8 on loan customers. We were advised during an IRS reporting seminar to get them on loan customers.

Anyone can junp in here and correct me if I am wrong, but we get W-8s on all non-resident aliens, interest-bearing or not.

The rules say we need a TIN for every deposit account opened. The W-8 shows that the account belongs to a NRA and therefore there may not be a TIN (so we don't get fined for not having one). Besides, the NRA may open a non-interest bearing DDA today, but next month may change their mind and want a NOW account - is someone going to remember to get a W-8 at that point? By getting one up front, no one has to remember later on "did we get one already or not?"

I agree! Just a note, make sure that it's the new W-8 BEN
form that you are using.

Why would you need it for a loan customer? The purpose, as I understand it, is in the event that you must withhold from earnings....???

I understand the concept that it may be easier to go ahead and get one up front, even if they are only opening a regular checking account, but specifically we do not have to have one.

See, we too took the proactive approach and always had them fill out a form regardless of the type of account. But now that we are having to send these new forms to the customer, it is difficult getting them back. As many of you may know, these customers tend not to reside here in the US and trying to obtain some of these documents when renewal time came about has really been a hassle. ] am simply looking for the straight line approach or a "Have to have" basis only.