Yes, but only under one of the five exceptions in the Form W-7 instructions. Each exception ties the number to a US reporting or withholding obligation that already exists, such as a bank or withholding agent that must report income to the IRS, and each requires specific evidence attached to the W-7, usually an original letter from the payer or withholding agent. Outside those exceptions the W-7 is filed with the federal tax return that needs the number. Wanting to open a bank account is not, by itself, an exception.
What is the general rule?
Form W-7 goes in with the federal tax return that needs the number. That is the default the instructions set, and the IRS reads a W-7 without a return as an exception claim. If you claim none, or the one you claim is not supported, the application is rejected as not eligible or insufficient. The five exceptions exist because some people need a US taxpayer number before, or without, a return: the bank that must report your interest, the buyer who must withhold on your property sale, the lender who reports your mortgage interest.
The five exceptions in one table
The wording in the middle column follows Publication 1915 and the W-7 instructions. The right-hand column names the type of attachment; the exact document for your situation is in the instructions' exception tables, and it changes with the reason box you tick.
| Exception | What the IRS says it covers | What you attach |
|---|---|---|
| 1. Third-party withholding on income from an asset | You own an asset that generates income subject to IRS information reporting or withholding in the current tax year; a bank, financial institution or partnership will request your number to comply | An original letter or signed statement from the bank, financial institution, partnership or withholding agent, as the instructions specify for your case |
| 2. Wages, scholarships, honoraria, gambling winnings with treaty benefits | Compensation or grants subject to reporting, in most cases where a tax treaty benefit is claimed | The letter the instructions name for your case, for example from the school official or payer, and for wages a letter from the Social Security Administration denying an SSN |
| 3. Third-party reporting of mortgage interest | A lender will report the mortgage interest you pay, usually on Form 1098 | The mortgage documents the instructions name, showing the loan and the lender |
| 4. Withholding on the disposition of US real property by a foreign person | A buyer must withhold when acquiring a US real property interest from a foreign person; the seller needs a number, including to apply for a withholding certificate | The FIRPTA withholding forms for the transaction, as the instructions specify |
| 5. Treasury Decision 9363 | You have an IRS reporting requirement under Treasury Decision 9363 | Form W-7 with the supplemental documentation the instructions specify for this exception |
Exception 1: the one founders meet most
Publication 1915 describes it plainly: IRS information reporting or tax withholding applies to third parties, frequently banks and other financial institutions, who will request a TIN from you to comply with Treasury regulations. To obtain an ITIN under this exception you must include documentation showing that you own an asset that generates income subject to IRS information reporting or withholding within the current tax year, and an original letter or signed statement from your bank, financial institution or withholding agent must be attached.
Read that carefully. The asset and the reporting obligation have to exist. A partnership interest that produces reportable US income, an interest-bearing account already open and subject to reporting, or a US payer already withholding on you can qualify. A plan to open an account does not. The letter comes from the institution, on its letterhead, and says what the instructions require it to say.
Exceptions 2 to 5, briefly
- Exception 2 covers people paid wages, honoraria, scholarships or grants where a treaty benefit is claimed, and gambling winnings with a treaty claim. It is written for students, researchers and visitors; a founder rarely fits it.
- Exception 3 is the home loan case: a lender will report your mortgage interest on Form 1098 and needs your number. Foreign buyers of US property with a US mortgage meet it.
- Exception 4 is the sale case: a foreign person selling a US real property interest needs a number because the buyer withholds tax on the transaction, and may apply for a certificate to reduce the withholding.
- Exception 5 applies to reporting under Treasury Decision 9363. If you have never heard of it, it does not apply to you.
Which exceptions fit a non-US founder?
Honestly: Exception 1 when a US asset in your name already produces reportable income, Exception 3 or 4 when US real estate is involved, and otherwise none. A founder whose only US footprint is a new LLC that has not yet paid or reported anything to them personally usually has no exception to claim and files the W-7 with the return that his or her situation requires. Which return that is, and whether a treaty applies, are questions for your tax adviser; we do not answer them and we say so.
What we do is check the pairing before filing: reason box, exception, evidence. If your file fits an exception, we attach exactly what the instructions ask for. If it does not, we tell you what a return-based filing looks like rather than filing an exception the IRS will reject. That is the difference between a number in 7 weeks and a CP567 in 9.
What about an ITIN for a bank account only?
The phrase people search for describes a hope, not a rule. The IRS does not issue ITINs for the purpose of opening an account, and Exception 1 requires an asset that already generates reportable income, with a letter from the institution. What is true is the other direction: US banks may identify a non-US person by passport number under the federal customer identification rule, and once an account exists and earns reportable interest, the bank's letter can support an Exception 1 application. The banks guide covers what banks accept and why the order matters.
The mistakes on exception applications
- Claiming an exception with no letter, or a letter that does not say what the instructions require.
- Ticking a reason box that belongs to a return-based application while attaching exception evidence, or the reverse.
- A letter that is a copy or an email printout when the IRS asks for an original.
- Assuming a US company's EIN letter is exception evidence. It identifies the company, not reportable income in your name.
- Treating a bank's willingness to open an account as the IRS's willingness to issue a number.
Each of these ends as a CP566 or a CP567. The rejection guide has the full list and the fixes.