Form W-7: ITIN Application

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There are many doubts and concerns that exist about the W-7 form. For that reason we have made this article for you. Here we tell you what it is, what it is for and how you should fill it out acting as established by law.

Form W-7

The IRS Individual Taxpayer Identification Number is used for federal taxes only.

If you meet the requirements to obtain a social security number, you do not need to apply and submit this form.

What is the W-7 form used for?

Form W-7 is used for the following purposes:

  • To request a ITIN. It is a number delivered to natural persons through the IRS and is made up of nine digits that need to have a US taxpayer identification number to resolve matters related to federal taxes in the United States.
  • To renew a ITIN. The ITIN is only renewed if it is expired or about to expire and you are going to be included in a federal tax return of the United States.

Instructions to complete the W-7 form

Notice on the Paperwork Reduction Law.

This form requests a lot of information, so if you are one of the users who likes to comply with the laws that guide the collection of internal taxes in the United States, we recommend that you fill out all fields with required data. The user is obliged to provide this information to enforce the laws and be able to receive the precise amount of taxes.

EXCEPTION 1

NOTE APPLIED TO ALL EXCEPTIONS: US federal taxes must be withheld and/or file information returns in the current tax year

Third Party Withholding on Passive Income

People who can claim this exception and documents to present

  • People who are partners of a collective society American or foreign investing in the United States.

The person must attach a copy of the contract. Remember, it must be the association contract of the partnership or limited liability company.

  • People who have Bank account earning interest and also receive income for their work in the United States.

Attach a letter from the bank that guarantees that the person opened a business account and is willing to pay taxes.

  • People who are “Resident foreigners” for tax purposes and who have an interest and income-generating bank deposit account for reporting or withholding US federal taxes.

Attach a letter from the bank that guarantees that the person opened a business account and is willing to pay taxes.

  • people who perceive pensions, annuities, rental income, royalties, dividendsetc., and sooner or later have to present an ITIN to the personnel in charge of withholding.

Attach a letter from the bank that guarantees that the person opened a business account and is willing to pay taxes.

EXCEPTION 2

Wages, Salaries, Compensation and Fee Payments With a claim for benefits under a tax treaty

People who can claim this exception and documents to present

  • Individuals claiming benefits under a tax treaty who have an employment letter from the payer of income; or copy of the employment contract, etc.

They will submit Form 8233, in English, to the payer of the income.

Study Scholarships, Research Scholarships and Grants

  • Individuals free or with the duty to pay a small US tax rate for scholarship.

Attach a letter or any official notification from the educational institution that granted you the student benefits.

Copy of an agreement with a university or other educational institution.

Study Scholarships, Research Scholarships and Grants

No claim for benefits under a tax treaty

  • People who have scholarships or grants who are willing to file or US federal income tax withholding for the current year.

A letter or any official notification from the educational institution that granted you the student benefits.

Copy of an agreement with a university or other educational institution.

Gambling Winnings

  • Aliens who are not residing in the United States but who are visiting: who have winnings from gambling and who demand benefits so that their gambling winnings are cleartax free.

Submit Form W-7(SP) through a public employee or gambling agent.

With a claim for benefits under a tax treaty

EXCEPTION 3

Mortgage Interest Declared by a Third Party

  • Those individuals who have a mortgage loan on a home that is in the United States.

Documents evidencing that the person requested a residential mortgage loan. The sales contract must be attached.

EXCEPTION 4

Tax Withholding by a Third Party—Disposals of Property Rights

  • Persons involved in the alienation of rights to real property in the United States by a foreign person.
  • person who receives a notice from the transferor where no gain or loss is recognized as set forth in section 1.1445-2(d)(2) of the Treasury Regulations.

A Form 8288, Form 8288-A or Form 8288-B with all the information complete.

A copy of the real estate sales contract, the Closing Report (HUD-1 Form) or the Closing Declaration.

If a transaction is carried out where the user is notified that there is no gain or loss.

EXCEPTION 5

The form must be submitted according to TD 9363 and the requirements are as follows:

  • A non-U.S. representative of a foreign corporation an ITIN in order to complete the requirements set forth in the electronic filing.

add the Form 13350 and a letter from your employer on official letterhead stating that you are a responsible person and will therefore meet IRS filing requirements.

What is the ITIN?

It is a Number so that the taxpayer can identify himself.

The ITIN is a tax number that is issued by the Internal Revenue Service (IRS). The ITIN is made up of a series of numbers, 9 to be exact. This number series always begins with the number 9 and in addition to the numbers 70-88 are necessarily incorporated.

The IRS makes the supply of ITIN to all people who need an identification number regardless of their origin, it is provided for resolve tax issues in the United States as long as people do not comply with the requirements to have a social security number (SSNfor its acronym in English) of the Social Security Administration (SSA).

The ITIN is carried out so people are residents or foreignersthis is not an obstacle since both cases may have tax obligations and must present declarations and tax payments according to the Tax Code of the IRS.

The ITIN is obtained when the applicant meets the requirement and submits an approved federal tax return, unless they meet an exception.

ITIN Application Process

Make use of Form W-7SP, Application for Individual Taxpayer Identification Number to ask for the ITIN.

You must attach a valid federal return (not the case if you qualify for an exception).

Also add your original documents or certified documents to be able to corroborate your identity and you will also need documents to Verify your identity as a foreigner.

IRS
Austin Service Center
ITIN Operation
P.O. Box 149342
Austin, TX 78714-9342

If it is difficult to send to the IRS in Austin, the person has the possibility of using the services of a Authorized Acceptance Agent for him IRS or go to a Taxpayer Assistance Center.

The places where the Taxpayer is served give the requests for ITIN in person by appointment only, while in Austin at the Department of ITIN the numbers are announced by email.

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