completing line 7b of Form SS-4, the applicant should
write "N/A" in the block asking for an SSN or ITIN, unless the applicant already has an SSN or ITIN. When
answering question 10 on Form SS-4, the applicant should check the "other"
block and write or type in immediately follow
it with "For W-8BEN Purposes Only",
or "For Tax Treaty Purposes Only",
"Required under Reg.
1.1441-1(e)(4)(viii)" or
"897(i) Election".
If questions 11 through 17 on Form SS-4 do not
apply to the applicant because he has no U.S. tax return filing requirement,
such questions should be annotated "N/A". A foreign entity that completes
Form SS-4 in the manner described above should be entered into IRS records
as not having a filing requirement for any U.S. tax returns. However, if the
foreign entity receives a letter from the IRS soliciting the filing of a
U.S. tax return, the foreign entity should respond to the letter immediately
by stating that it has no requirement to file any U.S. tax returns. Failure
to respond to the IRS letter may result in a procedural assessment of tax by
the IRS against the foreign entity. If the foreign entity later becomes
liable to file a U.S. tax return, the foreign entity should not apply for a
new EIN, but should instead use the EIN it was first issued on all U.S. tax
returns filed thereafter. If you want to
expedite the issuance of an EIN for
a foreign entity you can call (267) 941-1099.
An Employer Identification Number (EIN) is also
known as a federal tax identification number, and is used to
report estate and trust income on Form 1041 and also to identify a business
entity. Most businesses have this number and they usually must have it in
order to open a bank account unless they want to be forced to use their
personal name as the business name.
The ITIN is a tax processing number only
available for certain nonresident and resident aliens, their
spouses, and dependents who cannot get a Social Security Number
(SSN) that begins with the number 9 in the SSN format. To obtain the ITIN, you must complete Form W-7.
In addition, you must substantiate your foreign or alien status
and true identity by mail. Alternatively, you can
substantiate foreign or alien status
and true identity by going through an Acceptance Agent
authorized by the IRS. If you need to apply for a number, you can visit
Acceptance Agents which are entities (colleges, financial
institutions, accounting firms, etc.) who are authorized by the
IRS to assist applicants in obtaining ITINs. An ITIN, or Individual Taxpayer Identification
Number is a 9-digit number, beginning with the number 9 and
formatted like an SSN. It is important that you be aware that
you cannot claim the earned income credit using an ITIN.
Foreign persons who are individual should apply
for a social security number (SSN, if permitted) on Form SS-5
with the Social Security Administration or get an get an ITIN.
Each ITIN applicant must now apply using the revised Form W-7
and must attach a federal income tax return to the Form W-7. There is an identifying for
almost any situation. For example, you must apply for an ATIN which is a temporary nine-digit number issued by
the IRS to individuals who are in the process of legally
adopting a U.S. citizen or resident child but who cannot get an SSN
for that child in to file their tax return.
Taxable and Nontaxable Income
You can receive income in the form of money, property,
or services. This section discusses many kinds of income that are taxable or
nontaxable. It includes discussions on employee wages and fringe benefits,
