Guide to Global Payroll Management - 2020 - D-31

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Appendix D--Federal Forms and Instructions

* Schedule K-1 (Form 1065), Partner's Share of Income,
Deductions, Credits, etc.

M-1), but won't be employed (that is, your presence in the United
States is study related), you can choose to attach a letter from
the Designated School Official (DSO) or Responsible Officer
(RO) instead of applying with the SSA for an SSN. The letter
must clearly state that you won't be securing employment while
in the United States and your presence here is solely study
related. This letter can be submitted instead of a Social Security
Administration denial letter if you're filing a tax return with this
Form W-7 or claiming Exception 2 (explained later).
Nonresident alien students and exchange visitors, their
spouses, and dependents under the Student Exchange Visitors
Program (SEVP) claiming Exception 2 (no tax return attached)
can have their original ID certified by an SEVP-approved
institution, rather than mailing originals to the IRS. These are
individuals admitted to the United States under an F, J, or M visa
who receive taxable scholarships, fellowships, or other grants.
If you check this box to claim an exception under the benefits
of a U.S. income tax treaty with a foreign country, also check box
h. On the dotted line next to box h, enter the appropriate
designation for Exception 2, explained later. Identify the
exception by its number, alpha subsection, and category under
which you're applying (for example, enter "Exception
2b-Scholarship Income and claiming tax treaty benefits" or
"Exception 2c-Scholarship Income"). Also, enter the name of the
treaty country and the treaty article number in the appropriate
entry spaces below box h (if applicable) and attach the
documents required under Exception 2.

Applicants receiving compensation for personal services
performed in the United States, or issued a U.S. visa
CAUTION that's valid for employment, should first apply for an SSN
with the SSA. Unless you're denied an SSN by the SSA and
attach the denial letter to your Form W-7, you aren't eligible for
an ITIN.

CAUTION

Exception 2. Other income. This exception may apply if:
1. You're claiming the benefits of a U.S. income tax treaty
with a foreign country and you receive any of the following.
a. Wages, salary, compensation, and honoraria payments;
b. Scholarships, fellowships, and grants; and/or
c. Gambling income; or
2. You're receiving taxable scholarship, fellowship, or grant
income, but not claiming the benefits of an income tax treaty.
See Exceptions Tables, later, for more details on Exception 2.
Information returns applicable to Exception 2 may include Form
1042-S.
Exception 3. Mortgage interest-third-party reporting.
This exception may apply if you have a home mortgage loan on
real property you own in the United States that's subject to
third-party reporting of mortgage interest. See Exceptions
Tables, later, for more details on Exception 3. Information
returns applicable to Exception 3 may include Form 1098,
Mortgage Interest Statement.
Exception 4. Dispositions by a foreign person of U.S.
real property interest-third-party withholding. This
exception may apply if you're a party to a disposition of a U.S.
real property interest by a foreign person, which is generally
subject to withholding by the transferee or buyer (withholding
agent). This exception also may apply if you have a notice of
non-recognition under Regulations section 1.1445-2(d)(2). See
Exceptions Tables, later, for more details on Exception 4.
Information returns applicable to Exception 4 may include the
following.
* Form 8288, U.S. Withholding Tax Return for Dispositions by
Foreign Persons of U.S. Real Property Interests.
* Form 8288-A, Statement of Withholding on Dispositions by
Foreign Persons of U.S. Real Property Interests.
* Form 8288-B, Application for Withholding Certificate for
Dispositions by Foreign Persons of U.S. Real Property Interests.
Exception 5. Treasury Decision (TD) 9363. This exception
may apply if you have an IRS reporting requirement as a
non-U.S. representative of a foreign corporation who needs to
obtain an ITIN for the purpose of meeting their e-filing
requirement under TD 9363 and are submitting Form W-7 with
Form 13350, Registration for e-services. See Exceptions Tables,
later, for more details on Exception 5.
If you're applying for an ITIN under this exception, enter
"Exception 5, T.D. 9363" on the dotted line next to box h.

g. Dependent/spouse of a nonresident alien holding a U.S.
visa. This is an individual who can be claimed as a dependent
or is a spouse on a U.S. federal tax return, who is unable, or not
eligible, to get an SSN, and who has entered the United States
with a nonresident alien who holds a U.S. visa. If you apply for
an ITIN under this category, remember to attach a copy of your
visa to your Form W-7 and include a date of entry into the United
States on line 6d.

CAUTION

If you're required to file a federal tax return, then you
aren't eligible for Exception 1.

Dependents and spouses can be claimed as personal
exemptions only for tax years prior to 2018.

h. Other. If the reason for your ITIN request isn't described in
boxes a through g, check this box. Describe in detail your reason
for requesting an ITIN and attach supporting documents.
Frequently, third parties (such as banks and other financial
institutions) that are subject to information-reporting and
withholding requirements will request an ITIN from you to enable
them to file information returns required by law. If you're
requesting an ITIN for this reason, you may be able to claim one
of the exceptions described later. Enter on the dotted line next to
box h the exception that applies to you. Identify the exception by
its number, alpha subsection (if applicable), and category under
which you're applying (for example, enter "Exception
1a-Partnership Income" or "Exception 3-Mortgage Interest").
Examples of completed Forms W-7 can be found in Pub. 1915.
You won't need to attach a tax return to your Form W-7.
Exception 1. Passive income-third-party withholding or
tax treaty benefits. This exception may apply if you're the
recipient of partnership income, interest income, annuity income,
rental income, or other passive income that's subject to
third-party withholding or covered by tax treaty benefits. See
Exceptions Tables, later, for more details on Exception 1.
Information returns applicable to Exception 1 may include the
following.
* Form 1042-S, Foreign Person's U.S. Source Income Subject
to Withholding.
* Form 1099-INT, Interest Income.
* Form 1099-MISC, Miscellaneous Income.
* Form 8805, Foreign Partner's Information Statement of
Section 1446 Withholding Tax.

Line Instructions

Enter "N/A" (not applicable) on all sections of each line that don't
apply to you. Don't leave any section blank. For example, line 4
should have three separate entries.

Line 1a. Enter your legal name on line 1a as it appears on your
identifying documents. This entry should reflect your name as it'll
appear on a U.S. federal tax return.

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Instructions for Form W-7 (Rev. September 2019)

D-31

Guide to Global Payroll Management - 2020

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