* See Institute Memorandum to Tax Members No. 25-96, Operations Members No. 22-96 and Transfer Agent Advisory Committee No. 28-96, dated June 3, 1996.
July 5, 1996
TO: TAX COMMITTEE No. 23-96
OPERATIONS MEMBERS No. 33-96
TRANSFER AGENT ADVISORY COMMITTEE No. 40-96
RE: IRS RELEASES NEW FORM W-7 (APPLICATION FOR FOREIGNER’S
"ITIN"
______________________________________________________________________________
As we previously informed you, the Internal Revenue Service ("IRS") has finalized
regulations that require nonresident aliens ("NRAs") to include an IRS-generated "individual
taxpayer identification number" or "ITIN" on U.S. tax returns filed after December 31, 1996.* Of
most interest to investment companies, this requirement will apply to any NRA shareholder
whose request for recovery of overwithheld U.S. tax must be made on an IRS Form 1040-NR.
Recently, the IRS released the attached new IRS Form W-7, Application for IRS
Individual Taxpayer Identification Number, which must be used by any NRA requesting an
ITIN. The attached instructions to the Form explain (1) the W-7s purpose, (2) who must file the
W-7 application and (3) how, when and where to file it. The instructions also provide specific
help regarding completing certain items on the Form that are not self-explanatory.
We will keep you informed of developments.
Keith D. Lawson
Associate Counsel - Tax
Attachment