DOES FATCA APPLY FOR INDIVIDUAL TAXPAYER?

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Don’t have a Social Security Number (SSN) because you are not a US resident?

Thanks to the Individual Tax Identification Number, or ITIN. It is a US taxpayer identification number issued by the Internal Revenue Service (IRS), which allows the taxpayers without a Social Security Number (SSN) to file income tax returns. It is a 9-digit number, beginning with the number “9” which appears similar to an SSN (XXX-XX-XXXX).

The purpose of the ITIN is different from the other forms of ID and is confined to tax filing and reporting. The taxpayers will be excluded from enjoying the benefits such as social security or earned income credits.

ITINs can be obtained by both residents and non-residents regardless of their immigration status especially if you are not eligible for an SSN.

Importance of ITIN:

  • It ensures that taxpayers comply with U.S tax laws
  • To efficiently process tax returns and payments for taxpayers without a Social Security number.
  • Internal Revenue Code requires both residents and non-residents to have a U.S. filing or reporting.
  • ITINs are mainly used for federal tax reporting.

An ITIN does not promise the following:

  • To authorize work in the U.S.
  • To benefit from Social Security
  • To provide Earned Income Tax Credits

Is it essential to have an ITIN?

You are required to apply for a ITIN, If you belong to any of the following categories

  1. You do not have an SSN and are not eligible to obtain one, and
  2. You have a requirement to furnish a federal tax identification number or file a federal tax return, and
  3. You are in one of the following categories.
  • Nonresident alien who is required to file a U.S. tax return
  • U.S. resident alien who is (based on days present in the United States) filing a U.S. tax return
  • Dependent or spouse of a U.S. citizen/resident alien
  • Dependent or spouse of a nonresident alien visa holder
  • Nonresident alien claiming a tax treaty benefit
  • Nonresident alien student, professor or researcher filing a U.S. tax return or claiming an exception

Renewing ITIN:

Filing a tax return in 2020  is possible even if your  ITIN has expired or is about to expire soon.  It is advisable to submit your renewal application now to prevent potential delays in the processing of your return.

If you use an expired ITIN on a U.S. tax return, it will be processed and treated as timely filed, but without any exemptions and/or credits claimed and no refund will be paid at that time.  You will receive a notice explaining the delay in any refund and that the ITIN has expired.

We have provided ITIN registration and renewal services for over 18 years, and we are a registered ITIN service provider recognized by the IRS.

Get Started with the ITIN Registration Process.

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Form W-7 is used to apply for a USTAXID or often referred to as ITIN [Individual Tax Identification Number], This application process is required for non-citizens who aren’t eligible to receive a Social Security number but need to file a federal tax return with the IRS for income from US sources. A common scenario includes a foreign person with a United States based income filing a 1040Nonresident Federal Tax Return or US citizen/resident alien with a foreign spouse filing a joint 1040 tax return with a Married filing Jointly status.

We are happy to assist our clients in a timely, efficient, & cost-effective way

We are one of the IRS Enrolled Agents with many years of experience in US 1040/1040NR personal tax compliance reporting and FATCA Compliance FBAR Reporting.

We are also IRS Approved Certified Acceptance Agent [CAA] with many years of experience dealing with types of ITIN Form W7 application and passport certification processes for US TAX ID.