Common reasons to obtain an ITIN:
- You own U.S. property that is being sold and withholding tax is being taken. In order to reduce this tax, IRS Form 8288-B must be filed. This necessitates an ITIN.
- If you are a foreign partner in a U.S.-based partnership, you will need an ITIN to claim a refund on any withholdings that are prescribed by IRC section 1446.
- This withholding may be avoided on partnerships with foreign partners by creating a “blocker” entity, or LLC filing as a c-corp, on the US side. This entity would be US-based and would absorb the tax. This is another topic, however.
- If you have a foreign spouse or foreign dependents and would like to get the married filing jointly status or otherwise claim the dependents. This is common for U.S. expats living overseas
Reasons to use a Certifying Acceptance Agent:
- Without a CAA (Certifying Acceptance Agent), proof of identity and foreign status must be sent to the IRS – this means that you would be mailing your passport to the Austin, Texas IRS office. This may take weeks to process, and many feel uncomfortable with putting documents like this in the mail. As CAAs, we are on contract with the IRS to certify your identification documents ourselves, thus removing the need for you to send to the IRS.
- We have a dedicated support line directly to the IRS, as well as a direct email contact with the ITIN office in Austin. An individual taxpayer does not have this and would have to correspond by mail, which would lengthen the process significantly if any issues arose in the ITIN process.
- The final and main reason to use a CAA is you would have guidance throughout the ITIN process to make sure you are completing each item correctly. This type of support is not available through the IRS. Being based in New York City, we have served countless foreign-based clients and the accumulated experience brings unparalleled value.
For help with obtaining your ITIN, please feel free to contact us anytime, including weekends, at firstname.lastname@example.org or at (212) 641-0673