How to Get an ITIN for a Non-Resident For Business

November 23, 2020
Dropshipping
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This article, “ITIN for Non-US Citizens,” addresses non-US citizens and non-US residents (“foreigners”) who have formed an LLC in the U.S. and now must file taxes with the U.S. Internal Revenue Service (IRS).

You should apply for an ITIN when you have a U.S. tax filing or international reporting obligation.

You apply for your ITIN by submitting Form W-7 with your proof of foreign status in the U.S., proof of identity, and a federal income tax return to the U.S.

As a foreigner who has formed an LLC in the U.S., you should consult an accountant to determine whether you owe U.S. taxes.

Most people who start an LLC in the U.S. have a federal tax filing obligation.

You’ll find accountants who work with foreigners on the Acceptance Agent Program page on the IRS site.

Click the state where you formed your LLC, then call a couple of accountants.

You can leverage our methodology while making calls and see which accountant best suits you and your business model. Likewise, the accountants in the Acceptance Agent Program will assist you with the ITIN application for non-US citizens.

What is an ITIN?

ITIN is an Internal Revenue Service abbreviation for a U.S. Individual Taxpayer Identification Number.

ITINs are issued to non-resident aliens (“alien” is the legal term for foreigners), since the IRS does not get involved in immigration.

In other words, an ITIN is a unique number allocated to people who need to file income tax in the United States but do not qualify for a Social Security Number (SSN).

As a rule, all legitimate U.S. residents must have a Social Security Number (SSN) issued by the Social Security Administration (SSA). SSNs are used to identify U.S. taxpayers and their tax returns.

ITINs are assigned to people who do not have a Social Security Number (SSN) or are not eligible to get one. Instead of using an SSN, non-US citizens will use an ITIN to file taxes with the IRS.

U.S. Tax ID number for non-citizens

Nonetheless, since aliens (and some residents) may not be eligible to obtain an SSN, given that U.S. law requires tax identification for all federal tax returns, the IRS issues ITINs for all other individuals required to file taxes.

Likewise, dependents and spouses of ITIN holders must apply for their numbers.

In contrast to an SSN, an ITIN does not authorize work in the United States and cannot be used as proof of identification.

The ITIN doesn’t provide access to Earned Income Tax Credits or Social Security benefits. It is a number allotted to process federal taxes—nothing more, nothing less.

Therefore, the IRS does not give a card with an ITIN number as the SSA does with a Social Security Number.

If you need to know whether you have a U.S. tax filing obligation, consult an accountant. Taxes are more complicated for non-US citizens.

No individual can have both an SSN and an ITIN; citizens can have only one or the other.

The Purpose of ITIN

For non-US citizens, an ITIN is ONLY for U.S. taxes. You can use an ITIN only for its primary purpose: either to file a U.S. income tax return or to submit data to the IRS.

As such, an ITIN doesn’t give you the privilege to:

Access Social Security benefits
Work in the U.S.
Access the Earned Income Tax Credit
Acquire legal status in the U.S.

“Work” in the U.S., what does that even mean?

The term “work” is often confusing, especially for foreigners who form an LLC in the U.S.

However, as defined by law, “work” means a representative or an employee recruited for compensation, pay, tax, or payment to perform work for an “employer.”

Try not to confound “work” with “working on,” as in “working on the business.” Being the proprietor of an LLC does not mean you are working in the U.S.

Indeed, you own your LLC, and yes, you get things done for it; however, this does not imply that you are working for it (as an employee).

The U.S. federal government attempts to deter individuals from obtaining certain immigration and employment rights by requiring them to form an LLC in the U.S. Obtaining approval to work in the U.S. is undeniably more problematic.

Also, it’s beyond the scope of this informative guide. It would help if you worked with an immigration notary for employment eligibility matters.

ITIN application

The IRS provides direct access to legitimate ITINs on a simple, one-page Form W-7 Application for IRS Individual Taxpayer Identification Number.

The W-7 form instructs applicants only to request an ITIN if they have an SSN.

The instructions remind the applicants that “acquiring an ITIN neither changes the immigration status nor their right to work in the United States.”

Candidates for an ITIN

On the W-7 form, applicants need to identify themselves as one of these:

Non-US citizen alien filing a U.S. federal tax return
Non-US citizens must obtain an ITIN to qualify for tax treaty benefits.
U.S. resident alien (grounded on days present in the United States) filing a U.S. federal tax return
Non-US citizen alien teacher, student, or professional claiming an exception or filing a U.S. federal tax return
Spouse/dependent of a non-US citizen holding a U.S. visa
The Spouse of a U.S. resident/resident alien
Dependent of a U.S. resident/resident alien

For foreigners who don’t qualify for a Social Security Number (SSN) and are obligated to file federal tax returns, they’ll need to apply for an ITIN from the IRS.

You do not need an ITIN if no one else would claim you as a dependent on their Federal tax returns. You’re not obliged to file a Federal tax return if you have an SSN.

Note: Any ITIN that is not used at least once in 33 years will lapse. The IRS allows you to obtain a new ITIN by filing a new Form W-7.

Yourself vs. IRS Acceptance Agent

Although you can apply for an ITIN yourself, it’s prudent to seek support.

The IRS explicitly investigates your ITIN Application, U.S. tax return, identity verification, and foreign status.

The implication is that your ITIN application will be rejected

Thus, while you can apply for an ITIN, we suggest seeking support from an IRS Acceptance Agent (accountant) with practical experience helping foreigners.

Another way to help your passport is to employ an IRS Acceptance Agent (accountant). If you do not certify your passport, you must send your original passport to the IRS.

That can prove particularly upsetting if you have to travel soon or are already en route to the U.S.

Instead of employing an accountant, they can certify your passport and send it in with your ITIN Application, rather than using your original passport.

How do I get an ITIN?

How would you get an ITIN? You ‘dd pose. Well, to apply for an ITIN, you must meet the set criteria and certain exemptions, and you should have a U.S. tax filing obligation and file a federal income tax return.

Your ITIN application ought to include the following items:

U.S. Federal income tax return
Form W-7 (“Application for IRS ITIN”)
Proof of identity
Proof of foreign status

Presently, the IRS will accept 13 documents as confirmation of identity and proof of foreign status, so using your passport is the most straightforward and typical option. Consider these items as follows.

Differences: ITIN, SSN, EIN

What is the distinction between an ITIN, SSN, and EIN?

An SSN is an abbreviated Social Security Number.

The Social Security Administration (SSA) issues the number to recognize a U.S. Citizen, Permanent Resident, or Temporary Non-immigrant Worker. Only some people are qualified to acquire an SSN.

An ITIN is an acronym for Individual Taxpayer Identification Number. The number is utilized by those who need to be qualified for an SSN and have a U.S. tax filing or informational reporting requirement.

An EIN represents the Employer Identification Number. Although “E“ployer” is in the name, it’s not a must for workers to get and utilize the EIN. The IRS gives an EIN to organizations for tax filing obligations. Likewise, you will use an EIN to open a business bank account after forming an LLC in the U.S.

The resource Understanding IRS Taxpayer ID Numbers provides comprehensive insight into the subject. It will surely be worth your while. Check it out for more in-depth data.

If you get an SSN

Later, either through immigration status or employment, let’s say you become eligible for an SSN. At that point, apply for one, but to get the approval, you have to:

Quit using the ITIN; you can’t have both an ITIN and an SSN
Please send a letter to the IRS and request that they consolidate or merge your tax records

When you need to send a letter to the IRS, as much as you can send the letter yourself, it’s still a smart move to reach out to your IRS Acceptance Agent for help.

The letter you send to the IRS ought to include the following elements:

Date
Full name
Postal info
ITIN
SSN
Telephone number
Copy of your Social Security number
Copy of the CP-565B or CP-565A “Notice of ITIN Assignment”)

At the top part of the form, you can list all the data, and then beneath the data, you can compose as follows:

“I have been allocated a Social Security Number (SSN) and might want my tax records consolidated.

You can reach me at the number listed if you have any inquiries. Much obliged to you.”

Mail the inquiries to the IRS at the accompanying address:

Internal Revenue Service

Austin, Texas 73301-0057

NB: This mailing address does not include a street address. That is right. A street address is not required. The IRS has its mailing zip codes in Austin, Texas.

At that point, the IRS will use the new SSN to update previous records, then drop your ITIN.

Confirmation Letter:

In 30-60 days, you will receive an affirmation letter by post regarding the changes. Starting now and into the foreseeable future, you will use only your SSN and will not be permitted to use your ITIN.

The IRS will revoke the ITIN and link all your previously filed tax returns under the ITIN to the new SSN.

Avoid Concurrent applications for an ITIN & an SSN.

Try not to apply for an ITIN if you have already applied for an SSN. U.S. law states that a foreigner can’t have an ITIN or SSN.

Provided you are qualified for an SSN and have presented an application for an SSN but have yet to get feedback, you can skip applying for an ITIN. Your application for an ITIN will be dismissed should you use it.

Read Also:

The U.S. federal income tax return

It would be best if you considered hiring an accountant with qualified expertise in U.S. tax for foreigners to expedite the ITIN application process for non-US citizens.

Completing Return W-7 (Application for ITIN)

You can easily mess up Form W-7, leading the IRS to reject your ITIN Application. If that is the case, the case would work with an accountant specifically from among the ones you’ll find recorded as IRS Acceptance Agents,

But still, check out the links below for general info on what records are on Form W-7.

The IRS guidelines for Form W-7 are available at the following link:

To download the IRS Return W-7 here:

Application Type (Check one box):

Check off the first box if the application is for a new ITIN.

Why you submit Form W-7:

Read through the boxes (a-h) and select why you are applying for an ITIN. Select the box that best clarifies your reason when more than one applies. In this section, you’ll have to choose only one box.

If the box” or box” is checked, and there’s a tax treaty benefit to claim, you may choose the box at that point.” On the right, you should enter the Treaty Country and the Treaty Article Number. You should check with About Publication 901 and Publication 901 for further details on U.S. tax treaties.
If either box” or” is checked, you should enter your Spouse or dependent’s full name and their SSN or ITIN at that point.
If the box” or” is checked, you should attach a copy of your visa at that point. Exemption: If you enter the U.S. from Canada, the Cayman Islands, the Bahamas, the Turks and Caicos Islands, or Bermuda, you are exempt from attaching a copy of your visa.
But the box” checked; at that point, you should indicate the reason behind requesting the ITIN. NB: “Renewing an ITIN,” ITIN renewal,” or other comparative reasons are invalid. If you renew an ITIN, you should list why you got it.

Name

1a.) Similarly, enter your legal name; it shows up on your proof of identity documents.

1b.)Do enter something in #1b if the name you entered in #1a differs from your legal name at birth. Otherwise, leave #1b blank.

ApplicanMailingsngss

2.) Enter the complete mailing address of where you reside. The IRS will use the address to send your ITIN Approval Letter and, if necessary, return any original documents.

The mailing address in question is either within (inside) or without (outside) the U.S. territory.

Foreign (non-U.S.) Address

3.) When you enter a U.S. address in #2, at that point, enter the foreign (non-U.S.) address in the country where you usually or permanently reside.

But when the address in #3 matches the one you indicated in #2, enter “AM” on both lines in #3.

However, should you make a permanent move to the U.S.? If you do not have a foreign address, enter the country of your last residence.

NB: To claim a benefit provided for under an income tax treaty with the U.S., the country indicated on line #3 must correspond to the income tax treaty country.

Birth Information

4.) Enter the date of birth, country, city, state, or even province if relevant.

5.) Next, select whether you were born a male or a female.

In the U.S., the month/day/year format is used instead of day/month/year to communicate a date. Suppose you were born on May 30th, 1996; that would be entered as 05/30/1996. Likewise, make a point to use two digits. For instance, May was entered as 0 a, t th 3”.

Otheetails

6a.) Enter the full name of the country where you reside. Try not to abbreviate or curtail the nation’s name. If you have citizenship in two nations-dual citizenship, at that point, enter the two nations with a““in between the nations’ names.

6b.) If you have a tax I.D. number in the country where you reside, enter that here. But if you do not have a tax I.D. number from your country, you can leave 6b blank at that point.

6c.) If you have a U.S. non-immigrant visa, enter that data here. Kindly refer to the instructions on Form W-7 for how to enter these particulars.

6d.) Select the type of documentation you used to reveal your identity and enter those particulars in the 6d section.

6e.) Indicate whether you have or otherwise previously gotten an ITIN or an IRSN (Internal Revenue Service Number) from the IRS.

6f.) If you chose” “Ye” in #6a, at that point, you should complete part 6f. But if you chose” #6a, you will leave 6f blank.

6g.) If you chose box” in the “Reason you’re submitting Form W-” part, at this juncture, you should enter the relevant university, college, or organization. Likewise, you should enter the state, city, and the span of your stay.

Sign Here

Assuming you are applying for an ITIN, your name is in #1. You should sign the form, enter the date, and provide your telephone number. You can leave the Delegate row blank.

If the ITIN applicant is a dependent, kindly refer to the Form W-7 guidelines for signing this section.

AcceptanceAgent’ ss Use ONLY.

If you are recruiting an Acceptance Agent (which we suggest), the agent will enter their details in this section and sign the form. You ought not to complete this part.

Duplicate Form W-7 before submission to the IRS

It’s best practice to make a copy of your Form W-7 alongside all supporting documentation before presenting the IRS paperwork. Keep the copy with your business records.

Filing in person

Rather than mail your ITIN Application to the Texas address below, you can file your application in person at an IRS Taxpayer Assistance Center (TAC).

With the following link, you’ll discover a rundown of IRS Taxpayer Assistance Centers here:

But because of an appointment with these centers, it’s only proper that you call in beforehand.

However, you should hire an accountant’s service (who is an IRS Acceptance Agent) because an accountant’s scope of services extends beyond your ITIN Application, including setting up your U.S. federal income tax return.

ITIN Mailing Address

Please do not mail your ITIN Application to the address recorded in the Form 1040, Return 1040A, or Form 1040EZ guidelines.

Instead, mail your ITIN Application, which is Form W-7, U.S. federal income tax return, and proof of identity and foreign status documents to:

Internal Revenue Service

ITIN Operation

P.O. Box 149342

Austin, Texas 78714-9342

Proof of identity and foreign status files

You should submit documentation attesting to your identity and foreign status in the U.S. with your Form W-7 and U.S. federal income tax return.

I have already alluded to this above. The IRS will recognize 13 documents 13 documents as proof.

A few documents include a visa, a national I.D. card, a U.S. driver’s license, a foreign driver’s license, and a passport.

The link below takes you to the IRS site, where you can find the full rundown of accepted documentation.

Click Here.

While you’re at it, check under “What documents are acceptable as proof of identity and foreign status?”

Unlike the rest of the documents that merely serve one of these purposes, your passport is the only documentation used to attest your identity, just as proof of foreign status.

Kindly refer to the IRS guidelines for Form W-7 and check under the “Supporting Documentation Requirement” (see #3) to ascertain which documents are utilized for which purpose.

A passport is the most widely recognized; using your foreign passport will satisfy your identity verification and foreign status proof requirements. Passport was the easiest to use and most typical choice.

The IRS needs either a certified copy of your passport or your original passport.

Again, it’s best to liaise with an IRS Acceptance Agent accountant, who can help you obtain a certified copy of your passport.

If you hand in your original passport, you could wait multiple weeks to get it back; as such, depositing a certified copy of your passport is way better.

Qualify under an Exemption to the federal tax filing requirement.

The vast majority of applicants for an ITIN can do so by filing their U.S. federal income tax return.

However, if you meet one of the IRS Exemptions, you can apply for the ITIN whenever you want, and you do not need to incorporate a U.S. tax return alongside your ITIN application.

The rulebooks regarding the Exemptions are fairly confounded, so we unequivocally suggest working with an accountant (an IRS Acceptance Agent) to decide whether you meet any of the Exemptions.

ITIN for Non-US Citizen: ITIN Approval Letter

As referenced above, you will receive a letter from the IRS via the postal service regarding your ITIN Application decision.

Should your ITIN application be approved, you will receive a CP-565A notification. All the same, you may likewise get different notifications from the IRS, and they include:

CP-566: We Got Your Application for an ITIN

Suppose your ITIN Application is sent as incomplete or missing documentation.

In that case, you will receive a CP-566 notification from the IRS, which requests additional information to process your ITIN Application.

We likewise recommend employing an IRS Acceptance Agent to ensure you refile your ITIN Application correctly.

Letter 5872: Return of Supporting Documentation

The IRS sends this letter to inform you that they are returning the original documents, such as your identification or proof of identity, assuming you had sent original passports rather than certified copies.

CP-565A: We Assigned You an ITIN

When your ITIN Application is affirmed, you will receive a CP-565A notification, otherwise known as the “Notice of ITIN Assignment.”

Note: If you lose CP-565A, the IRS will use CP-565 B to send a copy of the ITIN approval letter.

CP-567: We Rejected Your Application for an ITIN

If your ITIN Application is rejected, you will receive a CP-567 notification clarifying why it was dismissed.

The letter includes a telephone number to call the IRS for more details. It’s most probable that you committed an error in the ITIN Application.

We suggest recruiting an IRS Acceptance Agent for your next ITIN application.

Duration for the ITIN approval process

If you submit your ITIN Application between January 1st and April 30th, it will take 9 to 12 weeks for your ITIN to be approved.

You can make your ITIN Application between May 1st and December 31st. It will take about two months for ITINs to be sent.

If you are still waiting for a letter from the IRS during those time periods, you can contact the IRS to check the status of your ITIN Application.

If you are in the U.S., you can reach the IRS at 1-800-829-1040.
You can reach the IRS at 1-267-941-1000.

NB: If you call from outside the U.S., the U.S. code to call the U.S. is either” 00” or “.”

Form 1040-ES, Form 1040-ES (N.R.), or Form 4868

You do not have to list an ITIN on the following forms:

Form 1040-ES (“Estimated Tax Payment”)

Form 4868 “Extension of Time” “)

Form 1040-ES (N.R.“U.S. Estimated Tax for Non-resident Alien Individual”)

Also, do not file Form W-7 with the above documentation. Whenever the above forms request an ITIN or an SSN, enter” TIN to be requested.”

ITIN Renewal

The IRS sends renewal letters called CP-48 notifications to individuals with expiring ITINs, so if you’re on an expiring ITIN, you should have received this notification.

To renew an ITIN, you will resubmit Form W-7 with the necessary documents and check “Renew an Existing ITIN” in the top right of the form.

As of 2018 to date, there are two explanations behind why an ITIN may expire:

1. Let’s say your ITIN was not used on a U.S. federal tax return for at least one year in the tax years 2016, 2017, or 2018. At that point, your ITIN lapsed on December 31st, 2019.

2. Equally, if your ITIN has middle digits of 20, 21, 22, or 30, for instance, model XXX-20-XXXX, your ITIN similarly lapsed on December 31st of 2019.

The IRS provided a visual chart about ITIN renewal using the link below. Check out the page:

Proposal: We suggest finding an IRS Acceptance Agent (a listed accountant) to renew your ITIN, file your U.S. tax return, and address any IRS information filing obligations.

IRS Contact Information

If you have any inquiries or questions about an ITIN application, call the IRS at 1-800-829-1040.

Disclaimer: Dropshippingit.com does not assume liability for any references or proposals to third-party services.

ITIN for Non-US Citizens: FAQs

Who Needs an ITIN?

The IRS issues ITINs to foreign nationals and others with federal tax reporting or filing obligations who do not meet SSN criteria.

Instances of people who need an ITIN include:

Non-U.S. citizens are required to file a U.S. tax return.
Non-US resident and do not meet all requirements for Social Security Number (SSN)
Dependent or Spouse of a non-U.S. citizen alien visa holder
U.S. resident alien who files a U.S. tax return
Dependent or life partner of a U.S. citizen/resident alien

What documents are needed from me?

To get your ITIN for a non-US citizen, you’ll ordinarily need to give two types of documentation:

1. Recognizable proof Documentation – Typically, a legitimate passport. If you do not have valid identification, the IRS-certified Acceptance Agent will provide you with a rundown of alternatives you can use instead.

1. Supporting Documentation—Subject to the drive behind your ITIN application, the Acceptances Agent will appropriately guide you on the best way to provide your supporting documentation after you fill out the ITIN for non-US citizens, and they audit your application.

How Long Will It Take To Get My ITIN?

ITIN processing times vary by time of day.

Because of the ongoing COVID-19 pandemic, ITIN processing takes about 8 to 10 weeks once you file your ITIN application with the IRS.

The IRS takes 8 to 10 weeks to process ITIN applications

What Guarantees That I’ll Get My ITIN?

Many ITIN services offer a 100% money-back guarantee. Their assurance is essential: if your ITIN application is declined under any circumstances, the IRS-certified agents will quickly issue a full refund with no questions asked.

That way, the agent takes on all the danger for you—100% Risk-Free.

Must I Send My Passport Certified?

You do not need to send your passport certified to get your ITIN.

Through IRS Certified Acceptance Agents, the accountant certifies your passport for you.

Is It Necessary for Me to Send My Original Passport?

You do not need to send us your original passport to obtain your ITIN.

Rest easy: IRS-certified acceptance agents will certify your passport, so you do not need to send in your original passport.

Can I use an ITIN to open a Bank Account?

Indeed, you can readily open a bank account with your ITIN and apply for a credit card!

Your ITIN can enable you to:

– Open a U.S. bank account, whether personal or business

– Open a PayPal and a Stripe account

– File federal tax returns

– Get a Credit card

– Apply for unemployment

For the taxes, you’ll find 2 types of TaxIDs:

1. EIN (Employer Identification Number) represents a tax I.D. number for a BUSINESS.

EIN is essential for a legally operating business in the U.S., and opening a business bank account is also necessary. The certified IRS accountant also assists you in obtaining your EIN.

1. An ITIN (Individual Tax Identification Number) is a tax I.D. number for individual use if you do not have a Social Security Number (SSN).

Suppose you want to get a verified ITIN for a non-US citizen. They offer special deals and can help you get an ITIN within minutes.

I believe you’ve learned how to get an ITIN for non-US citizens. If you need any further clarification, please don’t hesitate to comment below.

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