Instructions For Form W-7 - Application For Irs Individual Taxpayer Identification Number Page 6

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Exceptions Tables
Exception #1
Third Party Withholding on Passive Income
Note. Federal tax withholding and/or information reporting must take place within the current tax year.
Third Party
Withholding
Documentation you must submit if you are eligible to
Persons who are eligible to claim Exception 1 include:
on Passive
claim Exception 1:
Income
1(a) Individuals who are partners of a foreign partnership, or
1(a) A copy of the portion of the partnership or LLC
a U.S. partnership with 10 or more partners, that invests in
agreement displaying the partnership’s Employer
the United States and that owns assets that generate
Identification Number and showing that you are a partner in
income subject to IRS information reporting and federal tax
the partnership that is conducting business in the United
withholding requirements; or
States.
1(b) Individuals who have opened an interest-bearing bank
1(b) A signed letter from the bank on its official letterhead,
deposit account that generates income that is effectively
displaying your name and stating that you have opened a
connected with their U.S. trade or business and is subject to
business account that is subject to IRS information reporting
IRS information reporting and/or federal tax withholding; or
and/or federal tax withholding on the interest generated
during the current tax year.
1(c) Individuals who are “resident aliens” for tax purposes
1(c) A signed letter from the bank on its official letterhead,
and have opened an interest-bearing bank deposit account
displaying your name and stating that you have opened an
that generates income subject to IRS information reporting
individual deposit account that is subject to IRS information
and/or federal tax withholding; or
reporting and/or federal tax withholding on the interest
generated during the current tax year.
1(d) Individuals who are receiving distributions during the
1(d) A signed letter or document from the withholding agent,
current tax year of income such as pensions, annuities,
on official letterhead, showing your name and evidencing
royalties, dividends, etc., and are required to provide an ITIN
that an ITIN is required to make distributions to you during
to the withholding agent (for example, an investment
the current tax year that are subject to IRS information
company, insurance company, or financial institution, etc.)
reporting or federal tax withholding.
for the purposes of tax withholding and reporting
requirements.
Exception #2
Wages, Salary, Compensation, and Honoraria Payments with Tax Treaty Benefits Claimed; or Scholarships,
Fellowships, and Grants with Tax Treaty Benefits Claimed; or Scholarships, Fellowships, and Grants with No
Tax Treaty Benefits Claimed; or Gambling Winnings with Tax Treaty Benefits Claimed
Note. Federal tax withholding and/or information reporting must take place within the current tax year.
2(a). Wages,
Salary,
Persons who are eligible to claim Exception 2(a)
Documentation you must submit if you are eligible to
Compensation,
include:
claim Exception 2(a):
and Honoraria
Payments
Individuals claiming the benefits of a tax treaty who:
Claiming the
are either exempt or subject to a reduced rate of
A letter of employment from the payer of the income, or
benefits of a tax
withholding of tax on their wages, salary, compensation, and
A copy of the employment contract, or
treaty
honoraria payments,
A letter requesting your presence for a speaking
engagement, etc.
and
will be submitting Form 8233 to the payer of the income.
along with:
Evidence (information) on the Form W-7 that you are
entitled to claim the benefits of a tax treaty, and
A copy of the completed withholding agent’s portion of
Form 8233 attached to the Form W-7, and a letter from the
Social Security Administration (SSA)*, stating that you are
ineligible to receive a social security number.
*If you are present in the United States and are receiving
honoraria payments, you do not have to get a letter of
denial from the SSA. A letter from the authorized school
official stating the purpose of the visit and that the individual
will be receiving payment in the form of an honoraria will
suffice.
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