Exception #1
Note: Federal tax withholding and/or information reporting must take place within the current tax year |
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Third-Party Withholding on Passive Income | Persons who are eligible to claim Exception 1 include: | Documentation you must submit if you’re eligible to claim Exception 1: |
1(a) Individuals who are partners of a U.S. or foreign partnership that invests in the United States and that owns assets that generate income subject to IRS information reporting and federal tax withholding requirements; or | 1(a) A copy of the portion of the partnership or LLC agreement displaying the partnership’s employer identification number and showing that you’re a partner in the partnership that is conducting business in the United States. | |
1(b) Individuals who have opened an interest-bearing bank deposit account that generates income that is effectively connected with their U.S. trade or business and is subject to IRS information reporting and/or federal tax withholding; or | 1(b) A signed letter from the bank on its official letterhead, displaying your name and stating that you’ve opened a business account that is subject to IRS information reporting and/or federal tax withholding on the interest generated during the current tax year. | |
1(c) Individuals who are “resident aliens” for tax purposes and have opened an interest-bearing bank deposit account that generates income subject to IRS information reporting and/or federal tax withholding; or | 1(c) A signed letter from the bank on its official letterhead, displaying your name and stating that you’ve opened an individual deposit account that is subject to IRS information reporting and/or federal tax withholding on the interest generated during the current tax year. | |
1(d) Individuals who are receiving distributions during the current tax year of income such as pensions, annuities, rental income, royalties, dividends, etc., and are required to provide an ITIN to the withholding agent (for example, an investment company, insurance company, or financial institution, etc.) for the purposes of tax withholding and/or reporting requirements. | 1(d) A signed letter or document from the withholding agent, on official letterhead, showing your name and verifying that an ITIN is required to make distributions to you during the current tax year that are subject to IRS information reporting and/or federal tax withholding. Self-generated income statements will only be accepted with a copy of the contract or a letter with a postmarked envelope addressed from the withholding agent. |
Exception #2
Note: Federal tax withholding and/or information reporting must take place within the current tax year |
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2(a). Wages, Salary, Compensation, and Honoraria PaymentsClaiming the benefits of a tax treaty |
Persons who are eligible to claim Exception 2(a) include: | Documentation you must submit if you’re eligible to claim Exception 2(a): |
Individuals claiming the benefits of a tax treaty who:
and
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along with:
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2(b). Scholarships, Fellowships, and GrantsClaiming the benefits of a tax treaty |
Persons who are eligible to claim Exception 2(b) include: | Documentation you must submit if you’re eligible to claim Exception 2(b): |
Individuals claiming the benefits of a tax treaty who:
and
Note: Student and Exchange Visitor Program (SEVP)-approved institutions for nonresident alien students and exchange visitors and their spouses and dependents classified under section 101(a)(15)(F), (M), or (J) of the Immigration and Nationality Act {8 U.S.C. 1101(a) (15)(F), (M), or (J)}: A certification letter is required for each Form W-7 application: primary, associated secondary (spouse), and dependent(s).1 1 The certification letter from an SEVP-approved institution serves as a substitute for submission of original supporting identification documents with Form W-7. The certification letter must:
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along with:
2 If you’re a student on an F-1, J-1, or M-1 visa who won’t be working while studying in the United States, you won’t have to apply for an SSN. You will be permitted to provide a letter from the Designated School Official (DSO) or Responsible Officer (RO) stating that you won’t be securing employment in the United States or receiving any type of income from personal services. |
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2(c). Scholarships, Fellowships, and GrantsNot claiming benefits of a tax treaty |
Persons who are eligible to claim Exception 2(c) include: | Documentation you must submit if you’re eligible to claim Exception 2(c): |
Individuals receiving noncompensatory income from scholarships, fellowships, or grants (that is, foreign students, scholars, professors, researchers, or any other individual) that is subject to IRS information reporting and/or withholding requirements during the current year. |
along with:
3 If you’re a student on an F-1, J-1, or M-1 visa who won’t be working while studying in the United States, you won’t have to apply for an SSN. You will be permitted to provide a letter from the DSO or RO stating that you won’t be securing employment in the United States or receiving any type of income from personal services. |
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2(d). Gambling IncomeClaiming the benefits of a tax treaty |
Persons who are eligible to claim Exception 2(d) include: | Documentation you must submit if you’re eligible to claim Exception 2(d): |
Nonresident aliens visiting the United States who:
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Your Form W-7, which must be submitted through the services of an appropriate gaming official serving as an IRS ITIN Acceptance Agent to apply for an ITIN under Exception 2(d).
Note: If you don’t secure the services of a gaming official, you may still file Form 1040NR at the end of the tax year with a Form W-7, attaching a copy of Form 1042-S displaying the amount of tax withheld. Your Form 1040NR return also should display the tax treaty article number and country under which you’re claiming the treaty benefits |
Exception #3
Note: Federal tax withholding and/or information reporting must take place within the current tax year |
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Third-Party Reporting of Mortgage Interest | Persons who are eligible to claim Exception 3 include: | Documentation you must submit if you’re eligible to claim Exception 3: |
Individuals with a home mortgage loan on real property located in the United States. |
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Exception #4
Note: Federal tax withholding and/or information reporting must take place within the current tax year |
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Third-Party Withholding—Disposition by a Foreign Person of U.S. Real Property Interest | A withholding obligation generally is imposed on a buyer or other transferee (withholding agent) when the buyer acquires a U.S. real property interest from a foreign person. In some instances, the foreign person may apply for a withholding certificate to reduce or eliminate withholding on the disposition of real property.
If you’re eligible to claim Exception 4, you must submit:
Note: For the seller of the property, copies of the sales contract, and copies of Forms 8288 and 8288-A submitted by the buyer need to be attached to Form W-7. |
Exception #5
Note: Federal tax withholding and/or information reporting must take place within the current tax year
Reporting Obligations under TD 9363 | If you’re eligible to claim Exception 5, you must submit Form W-7 and Form 13350 along with a letter from your employer on corporate letterhead stating you have been designated as the person responsible for ensuring compliance with IRS information reporting requirements. |