Exception – 3 ITIN for Third-Party Withholding of Mortgage Interest

Information reporting and withholding requirements apply to third parties [i.e Banks and other Financial Institutions] who will request an ITIN to meet the compliance reporting of Mortgage Interest

The Most Common Form Number used for Exception 3 – Third Party withholding for Mortgage Interest is FORM 1098

The United States-based lending banks will request an ITIN to enable them to file information reports that are required by law.

ITIN for Third-Party Withholding of Mortgage Interest

NOTE: For this compliance reporting Federal Tax Withholding and/or IRS Information Reporting must take place within the current tax year.

If you are eligible to claim Exception 3, you must submit the below-listed documentation

  1. Documents showing evidence of a home mortgage loan. 
  2. A copy of the contract of sale or 
  3. Documents showing evidence of a home mortgage loan on real property located in the United States.

If you are an investor in US real property, its recommend to have ITIN ready to meet your US tax 1040NR filing for your US Rental Income, and it is mandatory to have an ITIN for any FIRPTA tax reporting when the sale of the US property 

If you have received any Form 1098 form with Federal tax withholding and wish to apply for ITIN to complete Form W8BEN to avoid withholding in the future tax year or require assistance with the ITIN application process for completion of the application, documents check, certification proving identity, foreign status the original passport via IRS Acceptance Agent. We can be of assistance for a reasonable fee. Our fee covers all the work processes as listed on this blog.

For more details on the step-by-step ITIN application work process by acceptance agents please check this blog.

Our team specializes in international expatriate U.S. personal tax return services. If you need assistance with ITIN Renewal/US 1040 filing for refund claim/FATCA Compliance work/FBAR FINCEN114 Filing, ITIN/ Form W7 Application/E.I.N./Form W8BENE or Certified Acceptance Agents [C.A.A.] services/1040NR U.S. tax filing for refund claim of excess 1042S / 8288A/ 8805/ W2/ 1099. We are happy to assist our clients in a timely, efficient, and cost-effective way.

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