Ties to the U.S.: You May Need an ITIN Number

Are you a non-U.S. citizen or green card holder who is required to file a U.S. tax return or has investments in U.S. real property or a U.S. partnership? If so, you may need to apply for a U.S. Individual Taxpayer Identification Number (“ITIN”).

An ITIN is a tax ID number that is issued by the Internal Revenue Service (“IRS”) to any individual who is not eligible for a U.S. Social Security Number (“SSN”) who must file a U.S. Federal tax return or has other reporting requirements under the Internal Revenue Code.

The following is a non-exhaustive list of situations that may require non-U.S. persons or green card holders to apply for an ITIN:

Non-residents filing a U.S. individual tax return (i.e., rental income or salary);
Spouse or dependents of a U.S. citizen or U.S. resident;
Non-residents who receive certain payments from sources within the U.S. such as scholarships, honoraria payments etc.;
Non-residents who sell U.S. real property; or
Non-residents claiming a tax treaty benefit.

To apply for an ITIN, you must complete IRS form W7 and submit documents to establish your identity and connection to a country other than the U.S. A certified copy of a passport is generally the best proof. Although the form itself is not terribly complicated, obtaining certified proof of identity generally requires a visit to either the passport office or a US embassy or consulate. This is usually a time-consuming procedure.

ITIN numbers do not have an indefinite life. They automatically expire if not used on a tax return at least once in the last three years. Otherwise, they expire periodically. The IRS publishes a list every year indicating which number sequences will expire in that year. If your ITIN is expiring you have to reapply using the procedures outlined above.

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Rebecca Li, CPA (NH)

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