I am a Canadian student who worked in the US for an internship. I opened a bank account with Wells Fargo when I was working and will keep it open until I go back to the US next year. Wells Fargo sent me the form W-8BEN asking me to fill it out so they don't have to withhold income.
Am I right in understanding that they only withhold some of the interest earned on the balance? Since I get very little interest, can I just not fill out the W-8BEN?
Canadian opened a US bank account which is asking for W-8BEN
Moderator: Mark T Serbinski CA CPA
as you may know, bank interest is not taxable in US for foreign residents, so the W8-BEN is not really for tax purposes.
Rather, for banks, the W8-BEN serves more as proof that that THEY know that you are foreign resident and that THEY will report report bank interest made to you.
Since they now know you are a foreign resident, and must report this to IRS, failure of you to file W8-BEN with them would likely result in them to closing the account, just for being uncooperative.
Your choice.
Rather, for banks, the W8-BEN serves more as proof that that THEY know that you are foreign resident and that THEY will report report bank interest made to you.
Since they now know you are a foreign resident, and must report this to IRS, failure of you to file W8-BEN with them would likely result in them to closing the account, just for being uncooperative.
Your choice.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best