How To Easily Get A US Tax ID ITIN Number: A Complete Guide for Non-Residents

Imagine this scenario: you’ve recently started working remotely for a US-based company while living abroad. You’ve been receiving your paychecks without any issues, but then you receive a letter from the IRS imposing heavy fines and demanding back taxes. The reason? You didn’t obtain a US Tax ID ITIN number for non-residents, which is crucial for complying with US tax laws. This nightmare situation underscores the importance of promptly understanding and securing your ITIN, easily.

Please note that by obtaining an ITIN does not give you US citizenship.

US Tax ID – Individual Tax Identification Number (ITN)

We will show you how to get the US tax ID ITIN as a non-resident.

A US Tax ID ITIN number is essential for non-residents when paying taxes in the United States. The IRS issues the Individual Taxpayer Identification Number (ITIN) to individuals who need a US tax reference but are not eligible for a Social Security Number (SSN). Without an ITIN, non-residents can’t correctly file their US tax returns, leading to fines, legal issues, and potential financial troubles.

You may need to file a US 1040 return to the IRS if you previously sold a US real estate property and was subject to the 15% FIRPTA withholding tax.

Form W-7 ITIN application

To apply for an ITIN number, you’ll need to complete Form W-7, the IRS application for a US tax ID. This form requires personal information such as your name, birthdate, and foreign tax identification number. Additionally, you need to provide supporting documentation, including a valid passport and proof of your foreign status. The process may seem complicated, but it’s manageable with the right guidance.

Start by filling out Form W-7 accurately. This form can be downloaded from the IRS website. Ensure all your details are correct when filling out the form, as any errors can delay the process. Attach the necessary documentation, usually a certified copy of your passport and other documents proving your foreign status and identity.

How to send your W-7 ITIN application to the IRS

Next, submit your completed Form W-7 and supporting documents to the IRS. You can mail them to the IRS office, present them at an IRS Taxpayer Assistance Center, or use an IRS-authorized Certifying Acceptance Agent (CAA). Using a CAA can simplify the process as they can certify your documents and send them directly to the IRS on your behalf.

Once the IRS receives your application, processing takes about 6 to 10 weeks. You will receive your ITIN number by mail if your application is approved. This reference will be used for all your US tax filings and financial transactions. Keep this safe; you’ll need it every time you interact with the IRS.

Having an ITIN is crucial for several reasons. It allows you to comply with US tax laws, file your tax returns correctly, and avoid penalties. Additionally, it enables you to claim tax treaty benefits, open a US bank account, and even obtain a mortgage if you plan to buy property in the US.

Failing to obtain a US Tax ID ITIN for non-residents can have serious consequences. As the earlier example shows, non-compliance can result in hefty fines and legal issues. Moreover, without an ITIN, you may face difficulties conducting any financial transactions in the US, which can be a major obstacle if you have investments, work, or other financial interests.

To avoid these issues, it is advisable to apply for your ITIN as soon as you realize you need one. Being proactive will save you from potential problems and ensure you stay on the right side of US tax laws. If you find the process overwhelming, consider seeking help from a tax professional or an IRS-authorized CAA who can guide you through the application process and ensure everything is done correctly.

Let’s address some common questions about the US Tax ID ITIN for non-residents to help you further understand its importance and the application process.

If you are moving from the United Kingdom (UK) to the United States (US) you will want to know what tax rates you will need to pay to the IRS & HMRC. Depending on which State you are moving to in the US will also dictate how much tax you will pay. There are some tax-free states in the US that you may be interested in. If you are moving from the United Kingdom, know about the UK non-residency rules.

Q&A Section: How to get a US Tax ID as a Non Resident

What is an ITIN, and who needs one?

An ITIN is a tax ID issued by the IRS to individuals who need a US tax ID but are not eligible for a Social Security Number (SSN). Non-residents who need to file a US tax return or have other tax-related obligations typically require an ITIN.

How do I apply for an ITIN?

To apply for an ITIN, complete Form W-7 and submit the required documentation, such as a certified copy of your passport, to the IRS. You can mail your application, visit an IRS Taxpayer Assistance Center, or use an IRS-authorized Certifying Acceptance Agent.