Taxes without ITIN number

AtlantaTaxExpert · Feb 17, 2012, 09:25 AM

Assuming you are a FRENCH citizen, you are NOT liable for any tax on the stock sales due to the fact that you are living and working in France.

However, because the bank does NOT have a Form W-8BEN on file that exempts your from back-up withholding, they MUST, by law, withhold 28% from the PROCEEDS of the stock sale. If they have NOT sent the withheld tax to the IRS yet, send them a Form W-8BEN IMMEDIATELY to stop the withholding!!

If the withholding has already been done and sent to the IRS, submitting the Form W-8BEN now is too late. You will need to file Form 1040NR with Form 8833 (to cite the U.S.-France Tax Treaty) to request a complete refund of the withheld tax. To file that return, you MUST also apply for an ITIN.

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Toadythetoad · Jun 15, 2012, 04:46 AM

I am in a similar-ish situation:

UK citizen living in the UK, I own shares in a US company (my employer). I want to sell these shares and I know that I need to submit a Form W-8BEN with the application to avoid the 28% tax (as above).

I am not sure if I need a ITIN or not for the W-8BEN. Getting an ITIN will require a notarised / apostilled copy of my passport + 12 week wait for the number to be issued. Instructions for the W-8BEN and W-7 are not very clear to me whether I need one or not!

Can you let me know either way.
Thanks

Taxes without ITIN number

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