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Subject Author Date
NRA, 28% backup withholding, help needed stevels70@googlemail.com 12-23-2006
Posted by stevels70@googlemail.com on December 23, 2006, 1:47 am
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 I am a non-resident alien, living and working in Italy for
the local branch of a US company, and I exercised some
stocks options that my US company gave me.The stocks were on
a US online account.

Unfortunately the online bank mis-processed my W-8BEN,
therefore I got the default 28% backup withholding.

I contacted IRS and they told me that I have to file the
following docs:

- 1042-NR
- W-7 (to get the ITIN)
- provide certified copy of the passport
- 1042-S

My questions are:

1) Is the 1042-S coming from the online bank?
2) By when will I get this document? Should I explicitly
ask for it, or is it automatically sent to me?

Note: stocks have been exercised in Nov 2006. I have no
other income from US. I am not involved in any US business.

Thanks a lot in advance,
Stefano

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Posted by parrisbraeside@yahoo.ca on December 26, 2006, 8:19 am
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 stevels70@googlemail.com wrote:

> I am a non-resident alien, living and working in Italy for
> the local branch of a US company, and I exercised some
> stocks options that my US company gave me. The stocks were
> on a US online account.
>
> Unfortunately the online bank mis-processed my W-8BEN,
> therefore I got the default 28% backup withholding.
>
> I contacted IRS and they told me that I have to file the
> following docs:
>
> - 1042-NR
> - W-7 (to get the ITIN)
> - provide certified copy of the passport
> - 1042-S
>
> My questions are:
>
> 1) Is the 1042-S coming from the online bank?
> 2) By when will I get this document? Should I explicitly
> ask for it, or is it automatically sent to me?
>
> Note: stocks have been exercised in Nov 2006. I have no
> other income from US. I am not involved in any US business.

I presume you mean the 1040NR, not 1042NR

The 1042-S should be coming from the Bank. Please note that
when the IRS says certified copy of your passport, they mean
US certified. You need to see a US Notary Public or one of
the IRS agents who are approved to handle the work of getting
an ITIN. The easiest way is to book an appointment at your
local US Embassy to meet with the US Notary Public. Fee is
usually $35USD, never local currency.

I would have a few words to your bank about the
mis-processing of the W8-BEN form.

Moderator:
The notarization costing $350 USD raises an interesting an
interesting question. US notaries are licensed by State
and, to the best of my knowledge, cannot work out-of-state.
Can a US CPA living abroad act as a notary for this purpose?

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by L K Williams on December 28, 2006, 12:26 am
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> stevels70@googlemail.com wrote:

>> I am a non-resident alien, living and working in Italy for
>> the local branch of a US company, and I exercised some
>> stocks options that my US company gave me. The stocks were
>> on a US online account.
>>
snip

> You need to see a US Notary Public or one of
> the IRS agents who are approved to handle the work of getting
> an ITIN. The easiest way is to book an appointment at your
> local US Embassy to meet with the US Notary Public. Fee is
> usually $35USD, never local currency.
>
> I would have a few words to your bank about the
> mis-processing of the W8-BEN form.
>
> Moderator:
> The notarization costing $350 USD raises an interesting an
> interesting question. US notaries are licensed by State
> and, to the best of my knowledge, cannot work out-of-state.
> Can a US CPA living abroad act as a notary for this purpose?

I think the $35 US is a standard fee, set by the State
Department. Embassy personnel are not notarys but all
Consular officers are authorized to certify documents. A
consular stamp will be accepted by courts, etc. in all
states, etc. I don't know about other embassies but, here
in Bangkok, the embassy does accept local currency.

As far as I know, the rule is that notaries are only
supposed to work in the state that commissioned them. Thus,
no US notary can certify documents outside the US.

Lanny K. Williams, CPA
Nawarat, Williams & Co., Ltd.
Income Tax Services for Expatriate Americans

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by stevels70@googlemail.com on January 3, 2007, 10:49 pm
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parrisbraeside@yahoo.ca wrote:
> stevels70@googlemail.com wrote:

>> I am a non-resident alien, living and working in Italy for
>> the local branch of a US company, and I exercised some
>> stocks options that my US company gave me. The stocks were
>> on a US online account.
>>
>> Unfortunately the online bank mis-processed my W-8BEN,
>> therefore I got the default 28% backup withholding.
>>
>> I contacted IRS and they told me that I have to file the
>> following docs:
>>
>> - 1042-NR
>> - W-7 (to get the ITIN)
>> - provide certified copy of the passport
>> - 1042-S
>>
>> My questions are:
>>
>> 1) Is the 1042-S coming from the online bank?
>> 2) By when will I get this document? Should I explicitly
>> ask for it, or is it automatically sent to me?
>>
>> Note: stocks have been exercised in Nov 2006. I have no
>> other income from US. I am not involved in any US business.

> I presume you mean the 1040NR, not 1042NR

Yes, sorry, I meant 1040NR

> The 1042-S should be coming from the Bank.

Is there a deadline date for the bank to send the paper? I
will be in US end of January, so if I have all the papers
with me I can probably go to an IRS office and get
face-to-face help for filling in the forms.

> Please note that
> when the IRS says certified copy of your passport, they mean
> US certified. You need to see a US Notary Public or one of
> the IRS agents who are approved to handle the work of getting
> an ITIN. The easiest way is to book an appointment at your
> local US Embassy to meet with the US Notary Public. Fee is
> usually $35USD, never local currency.

Yes, I contacted the local embassy and they will certify it
for me (and for 35 dollars :-) )

> I would have a few words to your bank about the
> mis-processing of the W8-BEN form.

Indeed, it was a sum of mistakes. I should have filed it
before exercising the stocks, since it seems that the
previous one expired, and the bank has no obligation to
notify this event, they say...

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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