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Individual Tax Identification Number (ITIN) –
ITIN Program OfficeAtlanta, GA
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An ITIN does NOT...
Entitle the recipient to Social Security benefits or Earned Income Tax Credit (EITC); but, may be eligible for CTC and ACTC
Create an inference regarding the individual’s immigration status
Give the individual the right to work in the U.S.
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Reasons for Form W7 Should not apply for an ITIN if eligible
for a SSN Form W-7 (Application for an ITIN)
has 8 “reasons for applying” that are listed as boxes a through h
Four commonly used by the immigrant population – boxes b, c, d, e
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An ITIN is required if you are...
A nonresident alien filing a U.S. tax return and not eligible for a SSN (Reason b on W-7)
A U.S. resident (based on the days present in the United States) filing a U.S. tax return and not eligible for a SSN (Reason c on W-7)
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An ITIN is required if you are …. A dependent of U.S.
citizen/resident alien
(Reason d on W-7) A *nonresident spouse
being shown on a tax return as an exemption
(Reason e on W-7)
* resident spouse, too.
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Substantial Presence Test Determines if the applicant is a resident
or nonresident for tax purposes Determines which box to mark on Form
W-7 for “reason for applying” – Reason b or c
Needs dates for the applicant’s entrance to the U.S. and for any subsequent travel outside the U.S.
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Substantial Presence Test If the client meets the substantial presence
test, the client is considered to be a resident for tax purposes and qualifies to file Form 1040 instead of Form 1040NR.
Test based on number of days the client has resided in the U.S.
Special rules apply for visa holders regarding days that can be counted as residing in the U.S.
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Substantial Presence Test
To meet the substantial presence test, the individual must be physically present in the U.S. for at least: 31 days during the current year, and 183 days during the 3-years that includes
the current year and the 2 years immediately before that
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Substantial Presence Test
Counting: All the days present in the current year,
and 1/3 of the days present in the first year
before the current year, and 1/6 of the days present in the second
year before the current year
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Required ITIN Application Documentation should…
1. Provide documentation to prove the applicant’s identity – contain the applicant’s name and a photograph
2. Provide documentation to prove the applicant’s claim of foreign status
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ITIN Documentation Documentation substantiating identity must be:
Originals, or Copies Certified by the Issuing Agency or official custodian of
the original record, or, Copies Notarized by an U.S. Notary Public legally authorized
within his or her local jurisdiction to certify that the document is a true copy of the original.
Copies Notarized by a Foreign Notary Public under the Hague Convention require an Apostille to be attached.
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Acceptable Documentation for ITIN application Changed in December 2003 to 13
items Passport U.S. driver’s license Civil birth certificate *National identification card (must
show photo, name, current address, date of birth, and expiration date)*Canadian applicants can use: Permanent Residence Card or Certificate of Citizenship, both acceptable National ID
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Acceptable Documentation (cont.)
Foreign driver’s license U.S. state identification card Foreign voter’s registration card U.S. military identification card Foreign military identification card
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Acceptable Documentation (cont.)
Visa – an official authorization appended to a passport – not the credit card.
U.S. Citizenship and Immigration Services (USCIS) photo identification
Medical records (dependents only) School records (dependents and/or
students under 14 y/o only)
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Documentation
A valid passport is the only stand-alone document
If other documentation is provided, at least two forms of documentation need to be provided and one must be a photo identification Exception for dependents under age 14 –
no picture required
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Current Documents Birth certificates do not contain expiration
dates and are considered current. If document has an expiration date,
expiration date cannot have passed. Medical records must be within 12 months of
the current date (application date). School records are current if date displayed
on records is not more than one year prior to date application is submitted.
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School Records
Acceptable forms of school identification: Student picture ID Report card Letter from school Administrative record
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Documents in Foreign Language Certified Translation should be provided
Signed and sealed by official performing the translation
Certifying the information on the foreign document
Attach certified translation and document in foreign language to the ITIN application
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Return attached?
New rules effective 12/17/03 Require a federal tax return to be
attached to the W-7 application unless an exception is met
Exception needs to be documented Four exceptions - two most
commonly seen with immigrant community
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Exception 1
Passive Income – third party withholding The applicant has an asset that
generates income subject to information reporting OR withholding requirements
Example – interest bearing bank account
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Exception 1 - Documentation Evidence that the applicant opened an
account with a financial institution that he/she has an ownership interest in the account
Examples – bank statement signature card letter from bank – on letterhead
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Exception 2
Third Party Reporting – mortgage interest Individual that has secured a home loan
may seek an ITIN to provide to their lender – the lender reports mortgage interest on Form 1098
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Exception 2 - Documentation
Evidence of a home mortgage loan Examples - loan commitment letter
from the financial institution, a broker’s listing agreement, or similar documentation
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When to complete Form W-7
Exception met – as soon as exception is determined
No exception met – when next tax return is due to be filed
Delinquent returns – when delinquent returns are ready to be filed
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Common Application Errors Application mailed to regular IRS
Service Center instead of the ITIN group in Philadelphia (use address shown on W-7 instructions)
Using outdated Form W-7 Not showing an entry date into the U.S.
when applicant is residing in the U.S. Not signing Form W-7
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Common Application Errors Name entries on Form W-7 not
matching supporting documentation Sending documents that have expired Not marking one of the boxes for
reason application is being submitted Not entering birth date in MM/DD/YYYY
format Not showing foreign address on line 2
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Common Application Errors
Not attaching a tax return when required
Not attaching documentation for one of the exceptions when no return is attached
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Common Application Errors Not having documentation properly
notarized when originals are not sent Not having foreign documents
*translated or not attaching the foreign document
* Spanish may not need to be translated since PSC ITIN Unit may have bilingual employees.
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Other Information If an extension for time to file or an estimated tax
payment is sent prior to receiving the ITIN, write “ITIN to be requested” wherever the ITIN/SSN is requested. Extension is filed with Philadelphia ITIN Unit.
ITIN taxpayer address change – have taxpayer complete Form 8822 and mail to Philadelphia
ITIN taxpayer name change – have taxpayer notify ITIN unit and send appropriate documentation
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Acceptance Agent Program Acceptance Agents are critical to the success
of the ITIN program because of their close proximity and availability to those needing ITINs for tax purposes.
AAs can include educational institutions, financial institutions, government entities/military installations, volunteer organizations and tax practitioners.
If you are interested in becoming an AA please sign the mailing list and we will send you our application and information packet.
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Changes in the AA Program Acceptance Agent Agreements expire
December 31, 2005. New Agreements will expire 4 years
from the date signed. Application Form 13551 is required to
apply for the AA Program. FBI Investigations (fingerprinting) Compliance checks.
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Contact Information
Francine PrinceChief, ITIN Program Office401 W. Peachtree St., NWMail Stop 97 WIAtlanta, GA 30308
(404) 338-8963ITINProgramOffice@irs.gov
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