Bank Deposit Reporting Requirements
Bank Deposit Reporting Requirements, no withholding (or reporting) is required on interest paid to foreign persons on deposits if such interest is not effectively connected with the conduct of a trade or business in the United States. For this purpose, the term “deposits” means amounts that are on deposit with a U.S. bank, savings and loan association, credit union, or similar institution, and from certain deposits with an insurance company. This reporting requirement applies to interest on a deposit maintained at a bank’s office in the United States. However, it does not include interest on certain bearer certificates of deposit if paid outside the United States. Although you only have to report payments you make to residents of Canada, you can comply by reporting interest on deposits to all foreign persons if that is easier.