[pmarc]

Hello,

I am French (living in France). I bought US stocks and sell them for a little loss.
I don't have an ITIN number yet. Apparently, I won't have one before April because I just send them the W8 form...

I want to transfert back my money but the bank is telling me that I have to paid a 28% tax !
They also saying that the taxes will be paid to me when I will get my ITIN number.

Is everything wright ?
Thanks

[AtlantaTaxExpert]

Assuming you are a FRENCH citizen, you are NOT liable for any tax on the stock sales because 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.

I specialize in these type of returns, and have successfully filed multiple returns of this type over the last six years. If you want my professional help, double-click on my title above and scroll down to my profile/signature. You will find my email address and websites there.

[Toadythetoad]

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