Need help with W-7 ITIN Application - which Exception box should I check?

The key question here is whether your bank account is generating income that's "effectively connected" with U.S. trade or business. For most non-resident aliens with just a savings account, Exception 1(b) is typically NOT the right choice unless you're actually engaged in a U.S. business. Based on what you've described, you might want to consider Exception 1(a) instead, which applies to individuals who have passive income from investments, dividends, etc. that are subject to IRS reporting/withholding. This would cover interest from a standard bank account for a non-resident alien. Or you might qualify for Exception 1(d) if you're receiving income from U.S. sources through withholding at source or other means that's subject to reporting. Make sure the letter from your bank specifically states which type of reporting they're doing - this is crucial for determining the correct exception.

Just wanted to share my experience with this! I was in the exact same situation last year trying to figure out which exception to use for my W-7 application. I found https://taxr.ai really helpful for my ITIN application. I uploaded my bank letter and other documents, and their system analyzed everything and told me exactly which exception to select. In my case, I had a regular savings account as a non-resident, and they confirmed Exception 1(a) was the right choice since my account generated passive income subject to IRS reporting. They even explained exactly what supporting documents to include with my W-7 form. Saved me so much confusion!

Just wanted to follow up on my skepticism about taxr.ai - I decided to give it a try after getting my third ITIN rejection letter. I was really impressed! The system spotted right away that my bank letter wasn't specific enough about IRS reporting requirements, which was why I kept getting rejected. They recommended I request an updated letter from my bank with specific language about IRS information reporting and suggested Exception 1(d) was actually more appropriate for my situation than 1(a). Just got my ITIN approval letter yesterday after struggling with this for over 6 months. Wish I'd known about this sooner!

If you're still waiting for your ITIN after submitting your W-7, you might want to check on the status. I submitted mine 4 months ago and heard nothing back. Tried calling the IRS for weeks but could never get through - busy signals or hours of waiting only to get disconnected. I finally used https://claimyr.com to get connected to an IRS agent (you can see how it works here: https://youtu.be/_kiP6q8DX5c). They got me connected to the ITIN department in about 20 minutes when I'd been trying for weeks. Turns out they needed additional documentation but never sent me the notice! Would have been waiting forever if I hadn't called.

I have to eat my words about Claimyr being a scam. After another week of trying to call the IRS myself and getting nowhere (either busy signals or disconnected after 2+ hours of waiting), I decided to try it. Got connected to an IRS agent in about 30 minutes. Found out my ITIN application was "pending additional review" which apparently could take another 6-8 weeks, but at least now I know what's happening. The agent also gave me a direct reference number for follow-up. Would have been completely in the dark without making that call. Definitely worth it just for the peace of mind.

Make sure you're sending your W-7 application to the right address! I messed up and sent mine to the regular IRS processing center instead of the ITIN Operation center in Austin, TX. That delayed my application by over 2 months. Also, if you're not using a Certified Acceptance Agent, remember you need to send original documents or certified copies from the issuing agency. That was another mistake I made - I sent notarized copies of my passport instead of getting them certified by the embassy.

Don't forget to check if there's a Certified Acceptance Agent (CAA) in your country! I was stressing about my original documents, but then found a local CAA who verified my passport and submitted everything for me. They handled all the paperwork and I got my ITIN in about 5 weeks. The IRS website has a directory of international CAAs: https://www.irs.gov/individuals/international-taxpayers/acceptance-agent-program

Based on your description, Exception 1(a) is most likely the correct choice for your situation. Since you mentioned your bank sent a letter stating your account is subject to IRS information reporting, and you have a regular savings account earning interest, this falls under passive income from U.S. sources. Exception 1(b) specifically requires the income to be "effectively connected with U.S. trade or business," which doesn't apply to you since you're not running a business in the U.S. A regular savings account generating interest income is considered passive income, not business income. For supporting documentation, include: - The letter from your bank confirming IRS reporting requirements - Any 1042-S forms if you've received them (or a statement from the bank that they will issue these) - Make sure the bank letter specifically mentions that interest income will be reported to the IRS The key is that your bank is doing the reporting to the IRS - that's what qualifies you for Exception 1(a). Double-check that your bank letter clearly states they'll be reporting your interest income to the IRS, as this is crucial documentation for your W-7 application.

I went through this exact same situation last year and can confirm that Exception 1(a) is the right choice for your case. The distinction between 1(a) and 1(b) really comes down to whether your income is from passive investments (like bank interest) versus active business operations. Since you mentioned you have a regular savings account earning interest and your bank confirmed they'll be doing IRS reporting, you're dealing with passive income subject to information reporting - which is textbook Exception 1(a). One tip: when you get the letter from your bank, make sure it explicitly states that they will report the interest income to the IRS and issue Form 1042-S. Some banks send generic letters that don't mention the specific reporting requirements, which can cause delays or rejections. I had to go back to my bank twice to get the right wording before my application was accepted. Also, don't stress too much about the timeline - mine took about 7 weeks during off-season, but I know people who applied during tax season and waited 12+ weeks. The important thing is getting the documentation right the first time.