You have to meet the return filing reason , or one of the exception-to-return-filing reasons. One cannot just arbitrarily apply for an ITIN as you must include documentation proving that you need one and that your reason aligns with IRS qualification requirements to receive one. The IRS sets out a finite prescribed list of qualification requirements – all split into two groups – IRS-return-filers OR exceptions. One reason that can be used for many applicants when they can’t qualify under other reasons, is owning many but not all types of USA bank accounts (so long as the US bank provides you with the required ITIN letter). Read More
Archive for ITIN
IRS will not issue an ITIN in order to allow a non-resident alien to open a USA bank account, it will only issue an ITIN for an existing open account that makes payments subject to withholding tax. The old conundrum is that most USA banks will not open an account without an ITIN. IRS will not issue an ITIN in order to allow a non-resident alien to open a USA bank account, it will only issue an ITIN for an existing open account that makes payments subject to withholding tax.
IRS will not issue an ITIN in order to allow a non-resident alien to open a USA bank account, it will only issue an ITIN for an existing open account that makes payments subject to withholding tax. The old conundrum is that most USA banks will not open an account without an ITIN. IRS will not issue an ITIN in order to allow a non-resident alien to open a USA bank account, it will only issue an ITIN for an existing open account that makes payments subject to withholding tax.
ITIN, Individual Taxpayer Identification Number, is a 9 digit number that is issued by the IRS that allows individuals who are not eligible for or who don’t have a social security number to file a U.S. tax return. Before such individuals can file their U.S. tax return though, they need to apply for an ITIN.
It’s important to note though that ITINs don’t qualify their holders to work in the U.S. or claim U.S. Social Security benefits; they are simply used to file U.S. taxes. Read More
The IRS changed its policy on acceptable documentation for issuing dependent Individual Taxpayer Identification Numbers (ITIN). The agency no longer accepts passports that do not have a date of entry into the U.S. as a stand-alone identification document for dependents from countries other than Canada or Mexico or dependents of military members overseas.
As you may be aware of there is a federal tax withholding requirement on the sale of U.S. real estate by non-U.S. persons. This does not exempt the vendor from filing a U.S. tax return to report the sale and paying any tax payable or requesting a refund for excess federal tax withholding.
According to Brenda L. Hales, Senior Tax Analyst at the Internal Revenue Service, ITIN Policy Section-M/S 97-WI, the ITIN Acceptance Agent Program includes the following changes made in 2016 and are immediately effective:
Starting off on my 100th blog post is extremely exciting to say the least! From my first post nearly 3 and half years ago, I think I have come a long way indeed! My stat-counter this morning read 78,670 views and that to me, friends, is a definite thumbs-up to continue continue to do what I am doing! What do you think?
What do you think?
New requirements implemented for dependents whose passports lack a date of entry stamp into the U.S.
Beginning Oct. 1, 2016, the IRS will no longer accept passports that do not have a date of entry into the U.S. as a stand-alone identification document for dependents from countries other than Canada or Mexico or dependents of military members overseas.
On August 4, 2016, the IRS released Notice 2016-48 outlining the renewal procedures pertaining to the implementation of the changes to the ITIN process as required by the PATH ACT, passed in December 2015. There were also changes to requirements for dependents.
On December 18th, President Obama, signed H.R. 2029, the tax (the “Protecting Americans from Tax Hikes Act of 2015”) and spending bills (Consolidated Appropriations Act, 2016) to fund the government for its 2016 fiscal year.
The PATH Act ITIN renewal requirements: individuals who were issued Individual Taxpayer Identification Numbers (ITINs) before 2013 to renew their ITINs on a staggered schedule between 2017 and 2020 either in person before an IRS employee or a certified acceptance agent or by mail under procedures to be developed. Documentation proving identity, foreign status and residency is required for renewal. The Act also provides that an ITIN will expire if an individual fails to file a tax return for three consecutive years.
Similar rules apply to individuals residing outside the United States such as Canadians who applied for ITINS and file U.S. tax returns reporting their net rental income from U.S. real estate. It’s important to keep in mind that the
Current Articles
Want To Gain Expert Knowledge And Skills Converting An Existing S Corp To An LLC? Complimentary WebinarOn Thursday, May 16th 2024, three leading experts are inviting you to a free webinar to learn cutting edge strategies on: Converting an existing S corporation to an LLC on a tax-free basis to obtain […]
Secrets To Learn Working With A Retained Tax Recruiter Vs. ContingencyLearn How You Benefit Retaining A Tax Recruiter There are many things that can go right in a tax search and there are many things that can go wrong during a tax search. There is a mile wide divide in […]
Legal Post: Texas Sales And Use Tax For Equipment RentalsMany businesses in Texas involve the performance of services that require the use of machinery and equipment. While these businesses may purchase the necessary equipment outright, others opt to rent […]
Canada Just Passed Law Increasing Exclusion Rate For Capital Gains To 66.6%Here is word for word a copy of an email sent to my inbox recently. Beware of all the swearing in case you may be offended. These are the types of emails I receive. “My home and native land […]
Biden Proposes Highest Capital Gains Tax in Over 100 YEARSBidens 2025 budget proposal raises the top marginal rate on long term capital gains and qualified dividends to 44.6 percent. The Biden administration has proposed the highest top capital gains tax in […]
Recent Comments