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IRS Form W-7 Exception Table

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A nonresident alien who wants to get an ITIN before the due date of the alien’s first U.S. income tax return can do so if IRS Form W-7 if any of the exceptions listed below apply.  For nonresident aliens who form a limited liability company that owns rental property, the two most common exceptions are 1(b) and 1(d).

Exception #1
 Note. Federal tax withholding and/or information reporting must take place within the current tax year.
Third Party Withholding on Passive Income Persons who are eligible to claim Exception 1 include: Documentation you must submit if you are 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 are 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 have 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 have 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 or federal tax withholding.
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