ILLMAS Posted March 22, 2016 Report Share Posted March 22, 2016 Does anyone know if one can apply for an ITIN (foreign individual) for bank purposes? MAS Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 22, 2016 Report Share Posted March 22, 2016 My understanding it that you must file a tax return in order to request an ITIN. You must have a tax reason to request one. Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted March 22, 2016 Report Share Posted March 22, 2016 Yes you can. Check the W-7 instructions. There are exceptions. Opening a bank account is one of them. 1 Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 22, 2016 Report Share Posted March 22, 2016 I guess in the past, banks were able to open US bank accounts without social security numbers or ITINs. I guess also the banks were able to lend money without SS#s or ITINs. When the rules changed, the banks were forced to withhold or to have a number in order to issue 1098s (mortgage interest), at that point the IRS included that "other" choice. Currently, banks don't open account or issue loans without a number and you cannot tell the IRS, I need to open a bank account and I need an ITIN. A client earned 8K a few years ago. W-2 showed 8K in box 1 and 0 in box 2. Client had money withheld for state (box 17) and the IRS denied his ITIN request because he was not required to file nor had a refund coming. Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted March 23, 2016 Report Share Posted March 23, 2016 A non resident alien with $8K would be required to file a 1040 NR. Since the taxpayer files alone and there is only one exemption allowed (no standard deduction), there would be over $4K of taxable income. He should have owed money. Until a few years ago the W-7 was a little more confusing and it was easy to make mistakes and therefore the application denied. Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 23, 2016 Report Share Posted March 23, 2016 I didn't say non-resident. Are you filing 1040NR for people with W-2? 100% of my clients with W-2 qualify to file regular 1040 with their ITINs. Has any one gotten an ITIN for a client just because he wants to open a bank account? Quote Link to comment Share on other sites More sharing options...
mircpa Posted March 24, 2016 Report Share Posted March 24, 2016 2 years back I floated TX corporation for a client of mine who were in country on visitors visa, she took articles to bank for opening bank account, bank issued letter requiring person needs to have SS & ITIN. I filed W7 with exception 1. third party withholding on passive income. She received ITIN and in turn got FEIN for corporation Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 24, 2016 Report Share Posted March 24, 2016 11 hours ago, mircpa said: 2 years back I floated TX corporation for a client of mine who were in country on visitors visa, she took articles to bank for opening bank account, bank issued letter requiring person needs to have SS & ITIN. I filed W7 with exception 1. third party withholding on passive income. She received ITIN and in turn got FEIN for corporation Cool. You just sent W-7 and passport to the IRS, correct? Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted March 24, 2016 Author Report Share Posted March 24, 2016 Good news, yes you are able to request an ITIN for banking purposes, see page 7 of the instruction, however you need to meet one of the requirements. https://www.irs.gov/pub/irs-pdf/iw7.pdf Quote Link to comment Share on other sites More sharing options...
RitaB Posted March 24, 2016 Report Share Posted March 24, 2016 On 3/22/2016 at 5:43 PM, MsTabbyKats said: Yes you can. Check the W-7 instructions. There are exceptions. Opening a bank account is one of them. 3 hours ago, ILLMAS said: Good news, yes you are able to request an ITIN for banking purposes, see page 7 of the instruction, however you need to meet one of the requirements. https://www.irs.gov/pub/irs-pdf/iw7.pdf I'm just gonna leave this here. 1 Quote Link to comment Share on other sites More sharing options...
mircpa Posted March 25, 2016 Report Share Posted March 25, 2016 Have them walk down to local IRS office with original passport, filled in W7 & bank letter OR you have to mail original passport/W7 to IRS Austin, TX office. Lot of people are uncomfortable doing that. Quote Link to comment Share on other sites More sharing options...
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