Opening An Account For A NonResident Alien Without A TIN

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Question:

We have a nonresident alien who has applied for a TIN, but has not received it yet and would like to open an account. Should this account be opened pending receipt of the TIN? If so, what form should we have them complete? It appears to me that form W8 was replaced by form W8BEN in December 2000. Would this be the correct form?

Answer:

Use the W8BEN. The old W8 is no longer valid.

A person executing a W8BEN does not have to have a Social Security Number. If they have one fine, put it on the form. However, a properly documented nonresident alien (NRA) account is not subject to information reporting; i.e. you do not file 1099's. (If the NRA is a Canadian citizen they are subject to reporting on a form 1042S.)

First published on BankersOnline.com 7/15/02