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Non-resident Alien - IRS Reporting

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Question: 
If we have a properly certified non-resident alien, would we need to report an early withdrawal penalty to the IRS and generate a 1099 even if we do not report interest income for the customer?
Answer: 

No, a properly documented NRA account (other than for a Canadian citizen) does not require information reporting on interest paid on bank deposits, and that would include reporting early withdrawal penalties.

First published on BankersOnline.com 11/23/09

First published on 11/23/2009

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