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IRS ITN and W7 Application Questions

 
 
Reply Thu 28 Feb, 2013 05:28 am
Hi, I’m an American citizen residing in the Philippines. I have a 5-year old daughter for who has not yet been approved for American citizenship. My taxable U.S. income is low enough that not claiming her on my tax return as a dependent does not cause any issues or result in any real tax savings.
I need to get her an ITN in lieu of a Social Security Number. I opted not add her to my income tax return as a dependent and have already filed. In hindsight, it would have probable been easier, but I was not thinking at the time. Therefore, I need to get her an ITN with a W7 not attached to a return.
I need the ITN not for dependent purposes, but because she and I are both members of a Native American tribe in the U.S. The tribe pays cash disbursement to adult members and makes deposits for minors in trust accounts. Her enrollment was just recently approved, but before they can begin depositing her per capita disbursements into her trust account, they need either a SSN or ITN. Now, I know most will say just go ahead and get her citizenship and SNN, but that is not really an option right now due to the remote location in which I reside and certain other reasons. Of course, I will get her U.S citizenship eventually, but it’s not such a pressing matter presently.
I THINK I can get her an ITN based on a Tax Treaty between the U.S and the Philippines. However, I am unsure which article the basis for the ITN would fall under. Of course my daughter would not receive any actual income until she reaches 18 years of age. Nevertheless, she needs the ITN forthwith, so I am attempting to proceed with the W7 application using the tax treaty exemption as the basis for not submitting the form with my 2012 tax return.
So, I guess my questions are:
1.) Is it ok to file the W7 without the tax return based on the tax treaty exemption?
2.) Since the disbursements are made to a trust account and not directly to her (at least not yet), which article would I use on the W7 form? (Initially, I thought of using Article 18 – Private Pensions and Annuities. But, I am not really sure if it applies in this case.) The list of articles in the tax treaty are:

TABLE OF ARTICLES
Article 1----------------------------------Taxes Covered
Article 2----------------------------------General Definitions
Article 3----------------------------------Fiscal Residence
Article 4----------------------------------Source of Income
Article 5----------------------------------Permanent Establishment
Article 6----------------------------------General Rules of Taxation
Article 7----------------------------------Income from Real Property
Article 8----------------------------------Business Profits
Article 9----------------------------------Shipping and Air Transport
Article 10---------------------------------Related Persons
Article 11---------------------------------Dividends
Article 12---------------------------------Interest
Article 13---------------------------------Royalties
Article 14---------------------------------Capital Gains
Article 15---------------------------------Independent Personal Services
Article 16---------------------------------Dependent Personal Services
Article 17---------------------------------Artistes and Athletes
Article 18---------------------------------Private Pensions and Annuities
Article 19---------------------------------Social Security Payments
Article 20---------------------------------Governmental Functions
Article 21---------------------------------Teachers
Article 22---------------------------------Students and Trainees
Article 23---------------------------------Relief from Double Taxation
Article 24---------------------------------Non-discrimination
Article 25---------------------------------Mutual Agreement Procedure
Article 26---------------------------------Exchange of Information
Article 27---------------------------------Assistance in Collection
Article 28---------------------------------Diplomatic and Consular Officers
Article 29---------------------------------Entry into Force
Article 30---------------------------------Termination

The actual treaty text can be found here:
http://www.irs.gov/pub/irs-trty/philip.pdf
Thank you so much for any insight or advice you may be able to give in this matter.
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