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W7 / ITIN

An Individual Taxpayer Identification Number (‘ITIN’)

Application for ITIN/W7 form

An Individual Taxpayer Identification Number (ITIN) is a tax processing number assigned by the Internal Revenue Service (IRS) to individuals who are required to have a U.S. taxpayer identification number but who do not have, and are not eligible to obtain, a Social Security number (SSN) issued by the Social Security Administration (SSA). ITINs are issued to foreign nationals and other individuals who have federal tax reporting or filing requirements and do not qualify for SSNs.

A Form W-7, Application for IRS Individual Taxpayer Identification Number, is used to apply for an ITIN. To apply for an ITIN, you must complete the Form W-7 and submit it to the IRS along with documentation that proves your identity and foreign status. The documentation requirements for Form W-7 depend on your specific situation and the purpose for which you are requesting an ITIN.

You can obtain a Form W-7 by visiting the IRS website or by contacting the IRS by phone or mail. You can also obtain a Form W-7 at some Internal Revenue Service (IRS) offices, U.S. embassies and consulates, and IRS-authorized acceptance agents.


Reasons to use USTax.cpa 

    1. USTax.cpa are a Certified Acceptance Agent   ( only one on island of Ireland )https://www.irs.gov/individuals/international-taxpayers/acceptance-agents-ireland
    2. Only we can certify a copy of your passport –  otherwise you must mail the actual passport to the IRS who are currently taking about 4 months to process – if your passport is misplaced throughout the process you will have no recourse.
    3. USTax.cpa is based in Ranelagh Dublin Ireland.
    4. We have a US tax attorney and US CPA and handle tax aspects of US estates
    5. We are familiar with US /  Ireland  Inheritance tax treaty
    6. We have 20 years’ experience in US Tax including reclaiming tax withheld on sale of US real estate / property under FIRPTA

Additional ITIN – W7 information

You cannot apply for an ITIN if you have ever been issued a Social Security number or if you are entitled to apply for a Social Security number. For more on Social Security numbers see below.

ITINs are sought by non-US-taxable persons for a variety of reasons.

Common reasons are:

  • To file a valid nonresident tax return (IRS form 1040-NR) – often to claim a refund of tax withheld on certain payments originating in the U.S.
  • Non-US taxpayers selling real estate in the U.S. who are required to file a non-resident tax return (IRS form 1040-NR) to claim a refund of tax (called ‘FIRPTA’) withheld on the sale of the real estate (or in some cases to even show proof of application to allow a sale to complete.

(Note: that (i) a refund claim is time limited to three years from the due date of the tax return for the year the tax was withheld, within which a valid tax return must be filed, and (ii) if no ITIN has been issued (or has expired) then a valid tax return is only made with the ITIN application.)

 

  • Non-US taxpayers required to file IRS form 1040-NR to claim a treaty benefit – such as Amazon sellers claiming exemption from US taxes (you must file the 1040-NR to claim the actual exemption).
  • Non-US taxpayers filing IRS form 1040-NR to report U.S. rental income (such as AirBnB income) to the IRS. Tax maybe withheld at 30% of gross rental income otherwise. This tax is lost after 3 years.
  • Non-US taxpayers who are beneficiaries of U.S. estates: an executor will need an ITIN to report disbursements to the IRS (and perhaps withhold taxes).
  • Non-US taxpayers inheriting U.S. retirement accounts / funds: an ITIN is often required by the custodian (fund) before any payments are made.
  • Spouses of US taxable persons who wants to file a joint tax return.
  • Claim certain tax treaty benefits (reduced withholding taxes on interest payments).
  • Renew an existing ITIN that has expired.

There are other less common reasons that arise, sometimes as a requirement to open a US bank account for a business, however the IRS has carefully this system to only issue an ITIN only where one is needed for tax purposes. This helps prevent abuse of the U.S. tax system.

Up to 2016 ITINs were issued without proof of identity – however a lot of fraud ensued so (i) the process was tightened to require better proof of identity and (ii) existing ITINs are cancelled after 3 years -unless renewed.

 

Expired ITINs: 

If your ITIN wasn’t included on a U.S. federal tax return at least once for tax years 2018, 2019, and 2020, your ITIN will expire on December 31, 2021. ITINs with middle digits (the fourth and fifth positions) “70,” “71,” “72,” “73,” “74,” “75,” “76,” “77,” “78,” “79,” “80,” “81,” “82,” “83,” “84,” “85,” “86,” “87,” or “88” have expired.

In addition, ITINs with middle digits “90,” “91,” “92,” “94,” “95,” “96,” “97,” “98,” or “99,” if assigned before 2013, have expired.

If you previously submitted a renewal application and it was approved, you do not need to renew again.  Otherwise, you should submit a completed Form W-7, Application for IRS Individual Taxpayer Identification Number, US federal tax return, and all required identification documents to the IRS.

Information returns:

If your ITIN is only being used on information returns for reporting purposes, you don’t need to renew your ITIN at this time. However, in the future, if you need to use the ITIN to file a U.S. federal tax return, you will need to renew the ITIN at that time.

 

Change of address:

It’s important that the IRS is aware of your current mailing address. This address is used to mail notices about your Form W-7, including notification of your assigned ITIN, and return your original supporting documentation.

For more see here:

https://www.irs.gov/individuals/individual-taxpayer-identification-number

 

 

W7                 

You complete and submit IRS form W7 to apply for an ITIN.

The W7 must be sent by mail to IRS ITIN Operations in Austin, Texas.

Each W7 must be filed with (i) valid proof of identity and foreign status, and (ii) supporting documents.

The IRS takes about 4 months (in 2022) to process each application (this should decrease to 3 months in the future).

The IRS will only correspond in writing – each letter can take 6 weeks (in 2022) to arrive.

If claiming a refund of U.S. tax withheld, you only have three years from the due date of the tax return for the year the tax was withheld to file a valid tax return – otherwise your refund is rejected.  By way of example: U.S. tax withheld in 2018 (always calendar tax years) is filed on form 1040-NR, which was due 15 June 2019. The three-year ‘claim-period’ expired on 15 June 2022. The ‘claim-period’ for 2019 tax year expires on 15 June 2023. If you mail a tax form to the IRS it is best to keep proof of mailing. We use U.S. Postal Service Certified Mail Receipts – which are deemed delivered when stamped in a U.S. Post Office.

Until you file a correct W7 application, you are not considered to have filed a valid tax return.

Most W7 applications are rejected because (a) errors completing W7 form, (b) incorrect supporting documents, and / or (c) incorrect proof identity / status.

For proof of identity / status a passport is best and covers both requirements. You can send a copy, but only if the copy is certified by an IRS authorized Certified Acceptance Agent (‘CAA’). We are an authorized CAA based in Dublin Ireland and cover both Ireland and Northern Ireland.

Social Security Numbers

A Social Security number is issued by the IRS to

  • S. taxable persons: (a) U.S. citizens, (b) green card holders, or (c) you meet the IRS substantial presence test,

(Note: U.S. taxable persons must file annual tax returns [IRS form 1040] with the IRS if they earn over a minimum threshold ($12,950 for single filers in 2022) even if they have always lived outside the U.S. or have never lived in the U.S. This obligation is not displaced by any tax treaty or agreement.)

U.S. citizens include those who have a birth certificate issued by any U.S. State – or even were just born in the United States or were born abroad (i.e. not in the United States) to a parent who was a U.S. citizen (for more see: https://www.usa.gov ).

  • Others: including students on J-1 visa, or other temporary work visas.

Once issued, your Social Security number remains with you for life – even if you lose status as a U.S. taxable person (including Social Security numbers issued to J-1 students, revoked green-cards, former citizens who have expatriated). To date (Jan 2023) some 453m Social Security numbers have been issued.

You cannot apply for an ITIN if you have ever been issued a Social Security number or if you are entitled to apply for a Social Security number.

If you have a Social Security number, then you should use it.

If you were issued a Social Security number but have lost it, you can retrieve the number from the Social Security Administration (https://www.ssa.gov) or the Federal Benefits Unit (‘FBU’) at local U.S. embassy (see here for Dublin: https://ie.usembassy.gov/social-security – and here Belfast: https://uk.usembassy.gov/embassy-consulates/belfast/federal-benefits).

 

If you want help retrieving a Social Security number, please get in touch.

If you are entitled to a Social Security number but have not had one issued  to you, then you should apply for one – however you should discuss this matter with a competent U.S. tax professional in case you need to bring your tax matters into compliance with the IRS (although certain ‘accidental Americans’ who wish to properly expatriate do not necessarily need to apply for a Social Security number).