Tax & Accounting Blog

NRA Withholding and Reporting on Payments to Foreign Nationals – Part 8: Does the Recipient Have to Provide a SSN or ITIN to Be Paid?

1099, ONESOURCE, Tax Information Reporting, W-8 & W-9 Foreign Reporting, Withholding Management July 13, 2012

No, there is no federal law or regulation that requires that an income recipient provide you with a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) in order to be paid. In fact, you must make the payment if you have an agreement with the recipient obligating your organization to pay the amount.

A SSN or ITIN is needed in two situations:

  1. For a claim under an income tax treaty provision for exemption from tax on any amount other than investment income on publicly traded investments
  2. For reporting income and taxes withheld, if any

Not all reporting requires a SSN or ITIN. For example, no SSN or ITIN is required to be reported on a Form 1042-S if tax was withheld at the statutory rate. The statutory rate is 30 percent for compensation for self-employment services as well as for most other payments.