# Bank Request for IRS Form W-9



## Touchline Dad (Mar 28, 2014)

Hello All-
A couple weeks back I was added to my Wife's checking account in the UK. Today we received a request from the bank for a bunch of information, her SS# or (Tax Id #) and for her to fill out a W-9 form.
I searched this forum for more info but I only found some older info and a couple of closed
threads. Is anyone familiar with this process? Thanks in advance.


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## salix (Apr 27, 2014)

It's just the form to verify your SSN.

http://www.irs.gov/pub/irs-pdf/fw9.pdf

They will send the form to the IRS to confirm. It's basically gives them your permission to make the inquiry.


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## Pallykin (Mar 30, 2014)

The IRS requires that companies in the US collect W9s from US vendors and W8s from foreign vendors. The forms formally collect your tax reporting information (SSN or a business tax ID). This number is then added to your "account" in the businesses computer system. 

In the absence of collecting this information, a company is required to withhold a huge percentage of the money paid out (because it is income). I can't recall the percentage, but it's high, and this is supposed to be the carrot/stick to ensure compliance.

I hadn't heard of this as a requirement in the context of an expat and their bank, but the purpose of it in the context of purchasing is to allow for reporting to the IRS.

The collection of W8s and W9s by businesses from their vendors only became required in the last couple of years or so. Possibly collecting them from expats is a new requirement? That might explain the lack of information out there...


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## Pallykin (Mar 30, 2014)

salix said:


> It's just the form to verify your SSN.
> 
> http://www.irs.gov/pub/irs-pdf/fw9.pdf
> 
> They will send the form to the IRS to confirm. It's basically gives them your permission to make the inquiry.


W8s and W9s are not sent to the IRS, and in fact say explicitly on them not to do so. They information is recorded in your account. It's possible there either is or will be reporting to the IRS by the bank - just as in the US. Your interest earned and perhaps balance could be (will be?) sent to the IRS just as in the US.

You will discover quickly that the IRS has been tasked with hunting down expats who are avoiding paying taxes, and in doing so are creating havoc for a lot of ordinary folks. They are spending a lot of money to achieve a relatively small return. I'm hoping this effort will be scaled back in the near future.

The US is the only country that collects taxes based on citizenship rather than residence. If you haven't researched this yet, you should. Filing US taxes as an expat is fraught with complexity and has high penalties if you get it wrong. A lot of people recommend that you seek the help of a tax professional...


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## Touchline Dad (Mar 28, 2014)

*Thanks.*

Pallykin-
Thanks so much for the detailed reply. According to the letter, the 'bank' did say they would forward the W 9 to the IRS. Not a big deal, as supposedly they are looking for people with over $500K + in their accounts…(supposedly.)


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## salix (Apr 27, 2014)

Touchline Dad said:


> Pallykin-
> Thanks so much for the detailed reply. According to the letter, the 'bank' did say they would forward the W 9 to the IRS. Not a big deal, as supposedly they are looking for people with over $500K + in their accounts…(supposedly.)


Yes, the form is used for verification. The form directs the person completing it to not send it directly to the IRS. I just sent one in to my mortgage lender to make a change to the SSN that my loan is tied to.


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## Pallykin (Mar 30, 2014)

Touchline Dad said:


> Pallykin-
> Thanks so much for the detailed reply. According to the letter, the 'bank' did say they would forward the W 9 to the IRS. Not a big deal, as supposedly they are looking for people with over $500K + in their accounts…(supposedly.)


I suspect they mean the information on the form will be shared with the IRS.

Businesses file the forms... and I mean in a real file, not the circular one...


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