This article ITIN for Non-US Citizen seeks to address the non-US citizens and non-US residents “foreigner”) who have formed an LLC in the U.S. and now need to 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 together with your proof of foreign status in the U.S., proof of identity, and federal income tax return to the U.S.
As a foreigner who’ve formed an LLC in the U.S., you should consult with an accountant to determine whether you owe U.S. taxes. Often most people who start an LLC in the U.S. will have a federal tax filing obligation in the U.S.
You’ll find accountants that work with foreigners on the Acceptance Agent Program page on the IRS site. Simply click on the state where you formed an LLC and 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 recorded in the Acceptance Agent Program will assist you with the application for ITIN for Non-US Citizen.
Mollaeilaw is an IRS certified agent that is specialized in ITIN for Non-US Citizen.
You can start your ITIN APPLICATION today.
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), given the IRS does not get involved with immigration.
In other words, ITIN is a unique number allocated to people who are needed to file income tax in the United States; people who do not qualify to have a Social Security Number (SSN).
As a rule, all legitimate U.S. residents must have a Social Security Number given by the Social Security Administration (SSA). Among other stuff, SSNs are used to identify U.S. taxpayers and their tax returns.
And ITINs are assigned to people who’d not have a Social Security Number (SSN) or those not eligible to get an SSN. Instead of using an SSN, the ITIN for non-US citizens will be used to file taxes with the IRS.
U.S. Tax ID number for non-citizens
Nonetheless, since alien (and some resident) may not legitimately get an SSN given that U.S. law requires a tax distinguishing proof for all federal tax returns, the IRS issues ITINs for all other people who are mandated to pay taxes.
Likewise, dependents and spouses of ITIN holders must apply for their own, Individual numbers.
In contrast to an SSN, an ITIN isn’t an approval to work in the United States, and neither can the number be used as an identification proof.
The ITIN doesn’t provide access to Earned Income Tax Credits or Social Security benefits. It is a number allotted to process federal taxes merely – 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 don’t know whether you have a U.S. tax filing obligation, you should consult with an accountant for help because taxes are more complicated for non-US citizens.
No Individual taxpayer can have both the SSN and an ITIN; citizens can only have either an ITIN or an SSN.
The Purpose of ITIN
For Non-US citizen, an ITIN is ONLY for U.S. taxes. You can’t use ITIN for whatever else other than its primary reason. And that is either to file a U.S. income tax return or 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” more often than not proves confusing, more so for foreigners who form an LLC in the U.S.
But as defined by law, “work” essentially means a representative or an employee who’s 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 stuff done for your LLC; however, in no way does it implies that you are working for your LLC (as a worker).
What the U.S. federal is attempting to do here is deter individuals from gaining certain immigration and employment rights virtually on account of forming an LLC in the U.S. Tell you what, getting approval to work in the U.S. is undeniably more problematic as it were.
Also, it’s beyond the scope of this informative guide. You should work with an immigration notary for any employment eligibility matters.
ITIN for Non-US Citizens: 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.
Right from the onset, the W-7 form instructs the applicants not to request an ITIN on the off chance that they already have an SSN.
The instructions equally 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 citizen alien needed to get an ITIN to guarantee a tax claim treaty benefit.
- 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 exception or filing a U.S. federal tax return
- Spouse/dependent of a non-US citizen holding a U.S. visa
- The Spouse of U.S. resident/resident alien
- Dependent of U.S. resident/resident alien
For foreigners who do not fit the bill 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 need not bother with an ITIN if no one else would claim you a dependent on their Federal tax returns. You’re not obliged to file a Federal tax return or if you have an SSN.
Note: Any ITIN not used at least once in the space of three years will consequently lapse. And the IRS allows you to acquire afresh another ITIN by filing a new W-7.
ITIN for Non-US Citizen : Yourself vs. IRS Acceptance Agent
Although it’s possible that you can apply for an ITIN yourself, it’s prudent to seek support.
The IRS gets specific about looking into your ITIN Application, your U.S. tax return, and your identity verification and foreign status. The implication is that should you commit any error, your ITIN application stands rejected.
Thus, while you can apply for an ITIN yourself, we suggest finding support from an IRS Acceptance Agent (that is an accountant), given that they have practical experience in helping foreigners.
Checkout out How To Get A Remote U.S Bank Account As A Non-U.S Citizen
Another case of employing an IRS Acceptance Agent (that is an accountant) can help your passport. On the off chance that you do not certify your passport, you’ll have to send the IRS your original passport.
That in itself can prove particularly upsetting should you have to travel soon or perhaps you’re en route to the U.S. Still, instead of employing an accountant, they can certify your passport for you and send that in together with your ITIN Application rather than use your original passport.
ITIN for Non-US Citizens: How do I get an ITIN?
How would you get an ITIN? You ‘dd pose. Well, save for you meet the set criteria certain exemptions, to apply for an ITIN, you should have a U.S. tax filing obligation and file a federal income tax return.
Your ITIN application ought to incorporate the following items:
- U.S. Federal income tax return
- Form W-7 (“Application for IRS ITIN”)
- Proof of identity
- Proof of foreign status
Presently, there are 13 different documents that the IRS will acknowledge as confirmation of identity and proof of foreign status. Using your passport, however, is the simplest and most typical choice. Consider these items as follows.
ITIN for Non-US Citizen: Differences; ITIN, SSN, EIN
What is the distinction between an ITIN, SSN, and EIN?
An SSN abbreviates Social Security Number. The number is issued by the Social Security Administration (SSA) to recognize a U.S. Citizen, Permanent Resident, or Temporary Non-immigrant Worker. Not every person is qualified to acquire an SSN.
An ITIN is an acronym for Individual Taxpayer Identification Number. The number is utilized by those who are not qualified for an SSN and have a U.S. tax filing or informational reporting prerequisite.
An EIN represents the Employer Identification Number. Although “Employer” is in the name, it’s not a must to have workers to get and utilize the EIN. The IRS gives an EIN to organizations for tax filing obligations. Likewise, you will utilize an EIN to open a business bank account after forming an LLC in the U.S.
The resource dubbed Understanding IRS Taxpayer ID Numbers is replete with a comprehensive insight on the subject. It will surely worth your while; Check it out for more in-depth data.
ITIN for Non-US Citizens: If you get an SSN
Later on down the road, either through immigration status or employment, let ‘ss say you become qualified 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 SSN
- 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, 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 to the IRS needs ought to incorporate 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 at that point beneath the data, you can compose as follows:
“I have been allocated a Social Security Number (SSN), and I might want my tax records consolidated. In case you have any inquiries, you can reach me via the number listed. Much obliged to you.”
Mail the inquiries to the IRS at the accompanying address:
Internal Revenue Service
Austin, Texas 73301-0057
NB: In this mailing address, there is no street address. That is right. A street address is not required. The IRS has their mailing zip codes in Austin, Texas.
At that point, the IRS will utilize your new SSN and enter that into all your previous records, and afterward, they will drop your ITIN.
Confirmation Letter:
In 30-60 days, you will get an affirmation letter via the post office to communicate about the changes made. Starting now and into the foreseeable future, you only use your SSN and will not, at this point, be permitted to use your ITIN.
The IRS will drop the ITIN and link all your previous tax details filed under the ITIN with the new SSN.
Avoid Concurrent application for an ITIN & an SSN
Try not to apply for an ITIN if you’ vee applied for an SSN. According to U.S. law, a foreigner can’t have both an ITIN and an SSN.
Provided you are qualified for an SSN and have presented an application for an SSN but yet get feedback, you need not bother applying for an ITIN. Your application for an ITIN will get dismissed should you apply.
The U.S. federal income tax return
You should consider hiring an accountant whose qualified expertise in U.S. taxes for foreigners accelerates the process of acquiring an ITIN for Non-US citizens.
Completing Return W-7 (Application for ITIN)
You can easily mess up Form W-7, and doing so will lead the IRS rejects your ITIN Application. That be the case, you should work with an accountant specifically from among the ones you’ll find recorded as IRS Acceptance Agents,
But still, for general info on what records on Form W-7, if you do not mind, check out the links below on the same.
The IRS guidelines for Form W-7 click:
To download IRS Return W-7 here:
Application Type (Check one box):
If the application is for a new ITIN, check off the first box.
Why you submit Form W-7:
Read through the boxes (a-h) and select the reason you are applying for an ITIN. When more than one applies, select the box that best clarifies your reason. 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, at that point, you may likewise choose box.” On the right, you should enter the Treaty Country and the Treaty Article Number. For further details on U.S. tax treaties, you should check with both the About Publication 901 and Publication 901.
- If either box” or” “is checked, at that point, you should enter your spouse or dependent’ ss full name and their SSN or ITIN.
- If the box” or” “is checked, at that point, you should attach a copy of your visa. Exemption: If you are entering the U.S. from Canada, Cayman Islands, Bahamas, Turks, or Bermuda and Caicos Islands, you ‘dd be exempted from attaching a copy of your visa.
- But box” checked, at that point, you should indicate the reason behind requesting the ITIN. NB: “Renewing an ITIN,” ITIN renewal,” or other comparative reasons do not suffice as valid. On the off chance that you are renewing an ITIN, you should list the original reason you got your ITIN.
Name
1a.) Similarly, enter your legal name; it shows up on your proof of identity documents.
1b.)Do not enter anything in #1b unless the name you entered in #1a is different from the legal name you had at birth. Otherwise, leave #1b blank.
Applicant ‘ss Mailing Address
2.) Enter the full mailing address of where you reside. The IRS will use the address to send your ITIN Approval Letter and, if necessary, return any of the 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 entered 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 is the same as the address you indicated in #2, at that point, enter” “SAM” on both lines in #3.
However, should you opt to make a permanent move to the U.S. If you do not have a foreign address, simply enter the country of your last residence?
NB: As for claim to 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 your birth, the country, and the city and state or even a province if relevant.
5.) Next, select whether you were born a male or female.
In the U.S., the country uses month/day/year instead of day/month/year to communicate a date. Suppose you were born on May 30th, 1996, that would enter as 05/30/1996. Likewise, make a point to use two digits. For instance, May enter as””0″” and not”””” and the 30th day entered as””3″”.
Other Details
6a.) Enter the full name of the country where you are a resident. Try not to abbreviate or curtail the nation’s name. In case you have citizenship in two nations-dual citizenship, at that point, enter the two nations with a” “in-between the nation ‘ss 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, at that point, you can leave 6b blank.
6c.) If you have a U.S. non-immigrant visa, enter that data here. Kindly refer to Form W-7 instructions 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” “N” in #6a, you will leave 6f blank.
6g.) If you chose box” in the “Reasonyou’ree submitting Form W-” part, at this juncture, you should enter the relevant university, college, or organization. Likewise, you should enter the state and city and the span of your stay.
Sign Here
Assuming that you are making an application for the ITIN, your name is in #1. As such, you should sign the form, enter the date and your telephone number. You can leave the Delegate row blank.
In the scenario the ITIN applicant is dependent, kindly refer to Form W-7 guidelines to sign and sign this section.
AcceptanceAgent’ ss Use ONLY
On the off chance that you are recruiting an Acceptance Agent (which we suggest doing) to help with your ITIN application and U.S. tax return, the agent will enter their details in this segment and sign the form. You ought not to complete this part.
Duplicate Form W-7 prior 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, it ‘ss possible that you can likewise 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:
https://www.irs.gov/help/tac-locations-where-in-person-document-verification-is-provided
But because of an appointment with these centers, it’s only proper that you call in before-hand.
Although you should hire an accountant’s service of s (who is an IRS Acceptance Agent) because the scope of an accountant transcends your ITIN Application to include setting up your U.S. federal income tax return
ITIN Mailing Address
Try not to mail your ITIN Application to the address recorded in the Form 1040, Return 1040A, or Form 1040EZ guidelines.
But instead, mail your ITIN Application that 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
Together with your Form W-7 and U.S. federal income tax return, you should likewise submit the documentation that attests to your identity and foreign status in the U.S.
At present, I have already alluded to this above that there are 13 documentations that the IRS will recognize as proof.
A few documents include the visa, national I.D. card, U.S.driver’s license, foreign driver’s license, and passport.
With the link below, you can locate the full rundown of acknowledged documentation on the IRS site:
https://www.irs.gov/individuals/revised-application-standards-for-itins
While at it, you check under the section named “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 a proof of foreign status. Kindly refer to the IRS guidelines for Form W-7 and check under the part named “Supporting Documentation Requirement” (see #3) to ascertain which documents get utilized for which purpose,
Passport is the most widely recognized: Using your foreign passport will fill your identity verification and foreign status proof. Passport happened to be the easiest to use and most typical of choice.
The IRS needs either a certified copy of your passport or your original passport. Again, it ‘ss best that liaise with an accountant that is an IRS Acceptance Agent as they will have the option to assist you with getting a certified copy of your passport. If you hand in your original passport, the wait could run into multiple weeks before you could get it back: as such, depositing a certified copy of your passport is way much better.
Qualify under an Exemption to the federal tax filing requirement
The vast majority applying for an ITIN can do as such filing their U.S. federal income tax return. But in case you meet one of the IRS Exemptions, at that point, you can apply for the ITIN whenever, 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.
Use the following discover the Exemptions in the Form W-7 guidelines:
https://www.irs.gov/directions/iw7#idm139766236836272
ITIN for Non-US Citizen: ITIN Approval Letter
As referenced above, you will get a letter via the IRS post office concerning your ITIN Application decision.
Should your ITIN Application gets an affirmation, you will get 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
In case your ITIN Application happens to send in as incomplete or missing documentation, you will get a CP-566 notification, which is the IRS asking for additional data to handle your ITIN Application.
We likewise prescribe 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 tell you that they are returning the original documents, for example, your identification or proof of identity, supposing you had sent original passports rather than certified copies.
CP-565A: We Assigned You an ITIN
When your ITIN Application gets affirmed, you will get a CP-565A notification, otherwise called the “Notice of ITIN Assignment.”
Note: Should you lose CP-565A, CP-565B is utilized by the IRS to send a copy of the ITIN approval letter.
CP-567: We Rejected Your Application for an ITIN
In case your ITIN Application gets rejected, you will get a CP-567 notification, which will clarify why the ITIN Application was dismissed.
There will likewise be a telephone number on the letter so you can call the IRS for more details. It ‘ss most probable you committed an error in the ITIN Application.
We suggest recruiting an IRS Acceptance Agent for your next ITIN application.
Duration for ITIN approval process
Suppose you send your ITIN Application in the middle of January 1st and April 30th; it will take 9 to 12 weeks for your ITIN to get approval.
Make your ITIN Application between May 1st and December 31st. It will take seven weeks to about two months for your ITIN to get endorsed.
Checkout out : How To Get LLC for non-Us Resident (New Guide 2020)
If you fail to get a letter from the IRS in those spans, you can contact the IRS to ascertain the status of your ITIN Application.
- If you are in the U.S., you can reach the IRS at 1-800-829-1040.
- If you are outside of the U.S., you can reach the IRS at 1-267-941-1000.
NB: If you call from outside of the U.S., the U.S. code to call the U.S. is either” “00”. or” “+1.”
ITIN for Non-US Citizen: 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 Tim””)
Form 1040-ES (N.R.) “U.S. Estimated Tax for Nonresident Alien Individual”)
Also, do not file Form W-7 with the above documentation. And whenever the above forms request an ITIN or an SSN, simply enter” “ITIN to be requested.”
ITIN for Non-US Citizens: ITIN Renewal
The IRS sends renewal letters called the CP-48 notification to individuals with lapsing ITINs, so if you’re on an expiring ITIN, you ought to as of now have gotten this notification.
To renew an ITIN, you will resubmit Form W-7 together with the necessary documents, and also, you will need to check” “Renew an Existing ITI” on the top right of the form.
As of 2018 to date there are two explanations behind why an ITIN may expire:
1.Let’ ss say your ITIN was not used on a U.S. federal tax return at least one year in the tax years 2016, 2017, or 2018. At that point, your ITIN lapsed on December 31st of 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:
https://www.irs.gov/media/167246
Proposal: We suggest finding an IRS Acceptance Agent (a listed accountant) to renew your ITIN, file your U.S. tax return, and deal with any informational filing obligation with the IRS.
IRS Contact Information
If you have any inquiries or have questions about an ITIN application, you can call the IRS at 1-800-829-1040.
Disclaimer: Dropshippingit.com does not assume any liability for any references or proposals to third-party services.
ITIN for Non-US Citizens: FAQs
Who Needs an ITIN?
IRS issues ITINs to foreign nationals and other people who have federal tax reporting or filing obligations and do not fit the SSNs bill.
Instances of people who need an ITIN include:
- Non-US citizen alien needed 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 of Me?
To get your ITIN for Non-US Citizen , you’ll ordinarily need to give two sorts of documentation:
1. Recognizable proof Documentation – Typically, a legitimate passport. On the off chance that you do not have valid identification, the IRS certified Acceptance Agent would provide you a rundown of AlternateID’s s you can use instead.
1. Supporting Documentation – Subject to the drive behind your application for an ITIN, Acceptances Agent will appropriately lead you on the best way to give your supporting documentation after you fill out the ITIN for Non-US Citizen , and they audit your application.
How Long Will It Take To Get My ITIN?
ITIN processing time changes depends on the time of the time.
Because of the ongoing COVID-19 pandemic, ITIN processing time takes about 8 to 10 weeks once you file your ITIN application with the IRS.
Presently, 8 to 10 weeks is the quickest time the IRS takes to deal with ITIN applications, and Mollaeilaw tries to file your ITIN for Non-US Citizen at the earliest opportunity.
What Guarantees That I’ll Get My ITIN?
A good number of ITIN services offer a 100% Money Back Guarantee. And their assurance is basic: if under any conditions, your ITIN application gets declined, the IRS certified agents will quickly give you a full refund, no inquiries posed.
That way, the agent takes on the entirety of the danger for you—100% Risk-Free.
Must I Send My Passport Certified?
No, 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 that I Send My Original Passport?
Nope, you do not need to send us your original passport to get your ITIN.
For the IRS Certified Acceptance Agents, rest easy because they’ll certify your passport for you, so you do not need to send in your original passport.
Check out: The Fastest Way To Get ITIN As Non-US Resident For Your Business
Would I be able to use an ITIN to Open a Bank Account?
Indeed, you will readily open a bank account with your ITIN and apply it to get a credit card!
Your ITIN can enable you to:
– Open a U.S. bank account; whether both personal and business
– Open PayPal and Stripe account
– File federal tax returns
– Get a Credit card
– Apply for unemployment
For the taxes, you’ll find 2-types of TaxID’s s:
1. EIN (Employer Identification Number) represents a tax I.D. number for a BUSINESS. EIN is essential to legally operated business in the U.S. also, EIN is essential to open a business bank account. The certified IRS accountants likewise assist you with getting your EIN.
1. ITIN (Individual Tax Identification Number) represents a tax I.D. number for individual use if you do not have a Social Security Number (SSN).
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