10/04/2010
In the past, we have allowed grandparents to open savings accounts for their grandchildren with the grandchildren being the primary owners and the grandparents as secondary. They would have the child's social security number. They would sign the child's name,(child is unable to sign due to age). Relative to CIP purposes can this still be done?
09/20/2010
A customer has a DBA sole proprietorship using his social security number. Are there any regs, etc., that say it cannot be in a "personal type" checking account? We only have a "commercial account" and nothing for the small "mom and pop" type of business.
08/30/2010
I have been in banking for awhile and am being told I am making a mountain out of a mole hill. When it comes to DBA accounts, I have one opinion on what purpose/style account should be opened and I am being told by others that I am not correct. There are two differing opinions when we open a DBA account. For example, one opinion is that Mickey Mouse DBA Great Escape Mousetraps should be opened as a personal style account, where at the account maintenance level, the code would indicate consumer for the purpose of household or personal use. The other opinion is one in which it should opened as a business style account, where at the account maintenance level, the code would indicate business for the purpose of business. The reporting tax ID number in both situations would be the customer’s Social Security Number. If I understand correctly, there are different regulations regarding the purpose/style of an account and there are different protections and benefits for each purpose/style. Can you please help as to which purpose/style would be proper? My best interest is doing things the correct way for the both the bank and the customer.
08/09/2010
We have a customer who runs an insurance agency titled under his name,(John Doe, Agent). If he wants to open an account so that the premiums he collects on behalf of certain companies can be swept out by ACH on a regular basis, how should it be set up? He is a sole proprietor; should he have access to the funds, TIN or SSN for the account? He wants "trust account" in the title. What if he receives an IRS levy, could these funds be taken? Please let me know the appropriate way to set up this account type.
08/02/2010
Can a joint owner of a personal account assign/give an account title modifier/nickname to the account that would include "association" in the title (i.e. "nowhere county professional association")? This is a personal account under an individual social security number. The customers are not buying, selling, or operating in a business manner. This is in essence a club.
08/02/2010
While cashing a check issued by its customer to a third party, is it mandatory for the paying bank to obtain the Social Security Number of the payee apart from photo ID details? If not, and if the transaction results in filing a CTR, what is the recourse?
07/12/2010
Recently in dealing with a non-resident alien, an ITIN was presented at the time of account opening. After researching on the irs.gov website and calling the IRS, I was told that an ITIN can only be used to file a US tax return. It is not to be used for any other purpose, including opening a bank account. In your question and answer page about non-resident aliens it mentions and ITIN can be used . Please clarify.
06/07/2010
Is there a certain sequence for state tax ID numbers? Do they start with a certain number per state/county?
05/31/2010
Can an LLC have a NOW account?
05/24/2010
We have an LLC with two members (husband and wife) and they would like to use a Social Security number for the account. In the literature from a recent webinar, it mentions that only a single member can use a Social Security number. We are speaking to the CPA for the LLC, and he is telling us that if the LLC is a "disregarded entity", that a Social Security number is acceptable. Is this correct? If so, what paperwork will we need to comply with all of our requirements if we are to allow this entity to use a Social Security number?