Entries Tagged 'Tax Identification Numbers' ↓

It’s easy to say to a nonresident, “Go get an ITIN.”

But that’s useless advice without specific help on exactly what to do. Here is the IRS web page on how to get an Individual Taxpayer Identification Number if you’re outside the United States. The instructions to Form W-7 can also help in the “What do I do next?” department.

One of the current bottlenecks for nonresident aliens and their U.S. tax compliance is the issuance of identification numbers. The system is slow, cumbersome, and a pain in the you-know-what.

Guess what. Now it’s worse.

The IRS thinks that people are using the ID number system for non-tax reasons, e.g., getting personal identification. So they are tightening up the process. Some highlights:

* In the old days there was a list of 40 types of ID that could be used to prove you are who you are. Now only 13 types of ID will work.

* Now you have to prove that you have a tax-driven need before you’ll get an identification number.

Use Form W-7 to apply for the Individual Taxpayer Identification Number.

Follow the extended entry to read the full press release from the IRS.
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Effective today, nonresidents who are engaged in a variety of U.S. real estate transactions will need to get a U.S. individual taxpayer identification number.

The IRS issued Final Regulations that require taxpayer identification numbers on withholding tax returns, applications for withholding certificates, and other section 897 and 1445 notices and elections.

Translated? Anytime a nonresident buys, sells, or exchanges U.S. real estate, he or she will need a U.S. identification number.

The process takes 6 - 8 weeks. It is a pain. Start today. Use Form W-7 to apply.