OBTAINING A US TAXPAYER IDENTIFICATION NUMBER ("ITIN")

Another Change!

Concerned about the abusive uses of ITINs, the IRS has now reversed and modified its ITIN instructions that became effective November 5, 2003. The purpose of the revisions is to restrict the issuance of ITINs to individuals that will actually use them for US tax purposes.

According to IRS Notice 2004-1 you must now use a revised Form W-7 (Application for ITIN) that was issued December 17, 2003, and you must follow the new revised instructions issued with the new Form W-7.

One of the main changes reverses the requirement that an ITIN be obtained before filing a tax return. Now, Form W-7 must be filed with the tax return and attached as the first page. Similarly, if Form 8288-B is being filed (application to reduce withholding on a real estate sale) the W-7 must be attached to the Form 8288-B.

Please refer to the instructions to the revised Form W-7 to determine the procedure to obtain an ITIN in situations where a tax return or Form 8288-B is not being filed.

Unofficially, the IRS has advised us that W-7s filed before December 17 will be processed.