09/16/2003
IRS TIN-Matching (TM) Program Available Soon, But Financial Institutions Will Want More
by Ken Golliher Opinions expressed are those of the author.
09/08/2003
Prior to the CIP being enforced beginning October 1, is it a current rule within the Patriot Act or other law or regulation that we must obtain social security numbers for authorized signers on a business account? What about after October 1?
09/08/2003
09/02/2003
We have two customers who want their safe deposit box put in the names of both of their trusts. They want the box styled His Trust Name @ 50% and also Her Trust Name @ 50%. Can this be done? The attorney they use has also sent another request for another customer to do the same thing with their safe deposit box. I don't see how one box can be put in the name of two trusts. If this is possible, what social security number or TIN do we use?
08/11/2003
We have a customer who would like to close his accounts at another institution and open them with us. He owns a collection agency and he told us that the state requires him to hold a trust account and an operating account. He stated that his previous institution would not allow him to transfer funds between the two accounts and that is why he is closing his accounts with them. He asked us if we would permit transfers between the two accounts if he opened them at our institution. It is our understanding that as long as both accounts have the same owner and TIN then transfers should be allowed. I don't understand why an institution would not permit transfers, unless the TINs did not match or the customer had a history of questionable transactions, but this customer is the owner of a reputable, long-standing area business. Are we correct in assuming that transfers are permissible, or is there a trust regulation that we are unaware of?
08/11/2003
We need clarification as to how to handle the titling of IRAs after the owner has died and the beneficiary is electing to take distributions from the IRA instead of closing it out and treating it as their own. In the past, we completed the Election of Beneficiary Form for IRS reporting. The confusion comes in because some think the IRAs "must be closed out" and I don't think that is necessarily true. I think in some cases they just need to be retitled, especially in situations where, for example, a spouse would elect to take life expectancy payouts.
08/04/2003
Can a parent open a savings account for their minor child using the child's social security number as the primary, with the parent as the guardian? How would you title this account? Or does the bank have to open a UTMA account, and if so, why?
06/03/2003
05/19/2003
New joint signer lives in China and does not have a social security number. The primary signer lives in Washington and has a SSN. Bank Secrecy Act states each signer must have an ID number on file. Would we have them complete W-8 BEN to add her to the account?
05/12/2003
When opening an account for non-resident alien can we use a social security number from a card that has "not valid except for work purposes only" printed on it or should this customer complete a W8BEN?