ITIN – Individual Taxpayer Identification Number
All persons owning rental property in the US must have an Individual Taxpayer Identification Number (ITIN). An ITIN is for tax purposes; it is not valid for personal identification. The ITIN does not entitle you to Social Security benefits; it does not entitle you to work in the US and it creates no inference regarding your immigration status.
What is an ITIN?
An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service. It is a nine-digit number that always begins with the number 9 and has a 7 or 8 in the fourth digit, for example 9XX-7X-XXX
IRS issues ITINs to individuals who are required to have a US taxpayer identification number but do not have, and are not eligible to obtain a Social Security Number (SSN) from the Social Security Administration (SSA).
ITINs are issued regardless of immigration status because both resident and non-resident aliens may have US tax return and payment responsibilities under the Internal Revenue Code.
What is an ITIN used for?
ITINs are for federal tax reporting only, and are not intended to serve any other purpose. An ITIN does not authorize work in the US or provide eligibility for Social Security benefits or the Earned Income Tax Credit. ITINs are not valid identification outside the tax system.
IRS issues ITINs to help individuals comply with the US tax laws, and to provide a means to efficiently process and account for tax returns and payments for those not eligible for Social Security Numbers.
Form W-7 Application for US Taxpayer Identification Number
In order for us to apply for your ITIN, please complete, sign and return Form W-7 (one per owner) along with the appropriate identification documentation. The requirements for acceptable identification documentation has recently changed – please contact our office for assistance.
Certifying Acceptance Agent (CAA)
Harding & Associates Tax Services is an IRS appointed Certifying Acceptance Agent (CAA) and can assist with the certificate of original documentation required to accompany your ITIN application.
EIN – Employer Identification Number
An Employer Identification Number (EIN) s a nine-digit number assigned by the IRS and is also known as a Federal Tax Identification Number. It is used to identify the tax accounts of employers and certain others who have no employees. The IRS uses the number to identify taxpayers that are required to file various business tax returns. EINs are used by employers, sole proprietors, corporations, partnerships, non-profit associations, trusts, estates of decedents, government agencies, certain individuals and other business entities.