ITIN Number
ITIN (Individual Taxpayer Identification Number): What is an ITIN?
An ITIN is a tax processing number that is required by non-U.S. non-residents who need to file a U.S. tax return and:
- Do not have a U.S. Social Security Number.
- Do not meet the requirements to qualify for the number.
Reasons for U.S. Non-Residents to Get an ITIN
1 The Sale of U.S. Property
Before 1981, U.S. residents paid taxes on the disposition of U.S. properties, while non-residents were generally exempt. According to the IRS, a disposition “includes but is not limited to a sale or exchange, liquidation, redemption, gift, transfers, etc.”
FIRPTA (the Foreign Investment in Real Property Tax Act) was enacted in 1980 to treat these situations comparably and pay tax, with certain exemptions, on the disposition of U.S. property (real estate), including vacation property or vacant land, by U.S. non-residents.
The IRS designates the buyer as the withholding agent, who will withhold the tax from the sale of the property. The buyer then remits that amount to the IRS within 20 days of the sale closing.
The sale of any U.S. property, including vacation property and vacant land, is subject to FIRPTA. There are a number of steps involved in the process. For details, see Steps to Selling.
There are also typically taxes withheld from the sale, although there are some cases that qualify for a reduction of, or exemption from, withholding tax. For details, see Withholdings & Exemptions.
2 U.S. Employment Income
If you had employment income from a U.S business or educational institution, you are required to file a U.S. tax return.
3 U.S. Business Income
Some examples of U.S. business income include:
- Personal services in the U.S., with certain exceptions.
- U.S. business ownership.
- Sale of a U.S. business.
- U.S. real property rental.
- U.S. Real Estate Rental Income
4 Rental income from a U.S. property.
5 U.S. Royalties
Performances, book writing, franchising, or mineral royalties. Some withholding exemptions or reductions are available for royalty income.
6 Gambling, prize, or lottery winnings
These winnings are subject to a 30% tax of net winnings.
Do You Have an Old ITIN?
You will need to renew your ITIN if, in the previous three taxation years, you have not filed a U.S federal tax return, or your ITIN was received from 1996 to 2012.
ITIN vs EIN (Employer Identification Number)
- An ITIN is issued to U.S. non-residents for the purpose of filing their U.S. personal tax returns.
- An EIN is the number used by U.S. businesses for the purpose of filing U.S. federal corporate tax returns.
If you own a business in the U.S., you may require both numbers.
ITIN Renewal
If you have an old ITIN, you will need to renew it if, in the previous three taxation years, you did not file a U.S federal tax return, or your ITIN was received from 1996 to 2012.
For an ITIN renewal, submit the following to the IRS:
- Form W-7
- Your U.S. federal tax return
- Supporting original identity documents
- The reason you want to renew
ITIN Application Renewal Fee
There is no ITIN application fee charged by the IRS.
Our fee is very reasonable. We charge $400 USD for each applicant. Additionally, there is an overnight courier cost for delivery to the IRS.
Making Your ITIN Application Quick and Easy
The IRS will reject applications if the submission is incomplete or inaccurate, or if the documents are invalid. This results in long delays that can lead to late filing of your tax returns, resulting in penalties for late filing and interest charges. Additionally, there is a chance that your documents will be lost.
We can help you obtain your ITIN number quickly and easily. We are authorized to authenticate your documents virtually or in person and submit your application electronically to the IRS. This saves you:
- The time it takes the IRS to receive your application by mail.
- A visit to an IRS Taxpayer Assistance Center.
- The time takes to reapply if your application is rejected.
We take care of the FIRPTA process so you can breathe easy.
Let FIRPTA GLOBAL Handle Your FIRPTA Needs
Our services can be provided virtually or in person. Contact us to start the process!