What Do I Do If the ITIN Issued by the IRS Does Not Match My International Banking Account?
An Individual Tax Identification Number (ITIN) is a nine-digit number assigned by the IRS after submitting a W-7 application. Although an ITIN is not used to open a bank account, some financial institutions will accept it when presented with other documents to verify your identity. When establishing a bank account, the financial institution will provide you with a number that could be as long as eighteen digits or a set of numbers which combines both a routing and an account number. You can typically expect your ITIN to be different from your bank account number and should not be concerned.
Why Does a Bank Need My ITIN?
A bank or financial institution is required to report to the IRS interest earned on savings, checking or certificate of deposit accounts. Your ITIN documents enable them to do so. There are, however, certain ITIN tax-reporting exceptions for individuals who receive passive income, such as partners in a U.S. or foreign partnership with income generated from U.S. assets.
ITIN exceptions are also available for individuals with passive income from interest-bearing bonds, dividends and rental properties. Other exceptions are made for eligible nonresidents claiming a tax-treaty benefit such as gamblers, students or researchers who will receive an exempt or reduced tax status.
Documents proving ITIN status for exceptions:
·Partnership bank statement noting its EIN and applicant's name
·Bank statement showing interest earnings are being reported to the IRS
·Letter or contract of employment and IRS Form 8233 proving tax-treaty benefits
·Letter or contract from an academic institution showing proof of grants or scholarship
· Statement showing eligibility for a tax-treaty benefit status
·Statement of a home mortgage loan or IRS Form 8288 and real-estate sales contracts
What Do I Need To Get an ITIN Number?
To learn more about applying and what’s required, visit our ITIN W-7 instructions. Once you have all the documents, you're ready to start. A member of our ITIN W-7 Application support team will help guide you through the entire application process.