Nonresident Alien-please

[jane123]

I have a non-resident alien bene who is unable to set a SS# and does not have an ITIN.

She says she is not required to obtain a ITIN.

Is there an exception that would allow us to pay out the distribution without obtaining a ITIN or SS#?

Thanks for your help.

[Guest b2kates]

Jane,

you can pay without the ITIN, but then you would be obligated to withhold at the 30% rate.

is the recipient in a treaty country that might result in lower withholding rate, that would be a good reason to obtain the ITIN.

[Locust]

Here's the IRS website on pension plan withholding:

http://www.irs.gov/businesses/small/intern...=104987,00.html

[jane123]

Thanks all

b2kates,

Can you help me to understand how to make that determination? When I looked at the instructions for filing form 1042-S and Form W-8 ben, it seems to say that a tax ID number is mandatory. However, I am aware that another firm processed a transaction without the Tax ID number…but they are unable to explain how they arrived at the determination that they could.

Thanks

Jane

[jane123]

b2kates

I see your answer to my other question.

This helps- but I have another follow up question, which I posted to that thread.

Thanks again