ITIN for banking purposes

[ILLMAS]

Does anyone know if one can apply for an ITIN (foreign individual) for bank purposes?

MAS

[Pacun]

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.

[MsTabbyKats]

Yes you can.  Check the W-7 instructions.  There are exceptions.  Opening a bank account is one of them.

[Pacun]

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.

 

[MsTabbyKats]

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.

[Pacun]

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?

[mircpa]

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

[Pacun]

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?

[ILLMAS]

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

 

[RitaB]

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.

[mircpa]

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.