1. W-7 and ITIN Training

2. What will you learn today?
Purpose of ITIN
Accurate completion of Form W-7
ITIN application process
Certifying Acceptance Agent role

3. What is an ITIN? Individual Taxpayer Identification Number
Same format as SSN; begins with number 9
Issued by IRS
May be a card, may be a letter

4. What is purpose of an ITIN?
File federal income taxes
May be used by other entities (loans, mortgage, bank account, rent apartment, etc.)
DOES NOT give permission to work in U.S.
DOES NOT change immigration status
DOES NOT imply illegal presence

5. Who may apply for an ITIN?
Anyone without valid social security number who is required to file U.S. taxes and meets substantial presence test (183 days residence)
Spouse without SSN who lives anywhere
Dependents without SSN who live in U.S., Canada or Mexico

6. How do you apply for an ITIN?
Original tax return
Form(s) W-7
Prove identity and foreign status

7. ITIN Renewals ITINs now expire on a rolling basis
Also expire if not used on a tax return for any of the three most recent years (2015, 2016, or 2017)
ITIN assigned to person does not change
Same process as application, only that can submit renewal without a tax return

8. Timeline for renewing an ITIN
Expires on 12/31 of the tax year
Can renew before or after ITIN expires
Quicker to renew before expires on 12/31
Once expired, must renew before filing a return for any year

9. What numbers are expired?
Expired 12/31/16: Middle digits 78, 79
Expired 12/31/17: Middle digits 70, 71, 72, 80
Expired 12/31/18: Middle digits 73, 74, 75, 76,
77, 81, 82
In summary, middle digits 70 – 82 have expired.

10. Completing Form W-7
ONLY three reasons for applying in CTC: U.S. citizen/resident alien filing tax return, dependent or spouse of U.S. citizen/resident alien. Never nonresident alien - out of scope
Name configuration
Do not click box for birth name different than application name unless birth certificate present
Mailing address – ITINs sent here
Foreign address – only if applicant lives outside U.S.

11. Completing Form W-7 cont.
Gender
Required entries for country, city and state of birth. Enter “unknown” if client unsure
Country of citizenship required; usually home country
Required entries for ID documents. May enter “unknown” except for document type.
Date of entry in U.S. impt. Help estimate date if needed. Determines Substantial Presence Test.

12. Resident or nonresident alien?
Substantial Presence Test:
U.S. resident for tax purposes if physically present in U.S. for at least:
31 days during tax year and
183 days during 3-year period of tax year and 2 years immediately before tax year, counting:
All days present in 2018
1/3 of days present in 2017
1/6 of days present in 2016

13. Resident or nonresident alien?
Seriously?? In plain English:
Your client tells you she entered the US on August 1, 2017, and has lived here ever since.
Jan 1, 2018 – Dec 31, 2018 = 365 days
Aug 1, 2017 – Dec 31, 2017 = 152 days
152 days divided by 1/3rd = 51 days
What if she entered on August 1, 2018?
Aug 1, 2018 – Dec 31, 2018 = 152 days

14. Nonresident aliens
Some people are exempt from the substantial presence test for a period of time.
Ex. students, teachers, scholars here on visas
If taxpayer is exempt from or fails the Substantial Presence Test, must file Form 1040NR (non- resident). We do not prepare these.

15. Completing Form W-7 cont.
Most never had foreign tax ID nor previous TIN or EIN.
If they say they have a number, call ITIN hotline first rather than applying again ( )
If student or scholar, refer to UT International Office.

16. Applicant signature Each applicant signs their own W-7
If applicant not in U.S., W-7 must be mailed for signature
If applicant under 14 years, parent or legal guardian may sign. Note: if niece or nephew, parent of child must sign, not primary TP.
Do not date signature; may only be valid for 5 days
Ensure don’t sign in Acceptance Agent’s Use box

17. Common mistakes Must be PAPER return – no e-file
Incorrect reason selected. Never use nonresident alien filing a U.S. tax return
Failing to prepare separate W-7 for each applicant
Failing to explain signature requirements
Giving client pre-addressed envelope to IRS processing center. These returns are NOT mailed to processing center; must be sent to ITIN Dept.

18. Documents required Original signed (by both if MFJ) tax return
Signed Form W-7 for each applicant
Proof of identity and foreign status
Passport only stand-alone document; otherwise
Two original unexpired documents from list in CTC flyer
ID documents must be originals and cannot be expired. School and medical records are current only if date on document within 1 year of ITIN application.
For adults one document must include a photo.

19. ITIN submission options
Acceptance Agent – CTC is one!
Must mail original documents to IRS
Certified Acceptance Agent
CAA authenticates IDs, mails copies
Make in-person appointment with IRS
Present original documents during appt
Each applicant must be present

20. This year: W-7s in TaxSlayer Pro
Complete W-7 in software only for applications
Okay if W-7 not complete or correct
Complete the tax return
Always recommend taxpayers to come see Janet and Dinorah before submitting to IRS
We will complete W7s, answer questions, and help client complete the process

21. Our process Janet mails in W7, tax return, and original ID docs.
Client goes to
CFCS Tues 3-7pm or
CFCN Wed 3-7pm.
Client goes to any CTC site to get tax return completed.
Client takes W7, tax return, and original ID docs to IRS appt.

24. What do we give to the client?

25. CTC process
Use for every applicant – primary, spouse and dependents
Do NOT claim EIC
Must file as PAPER return
Print 2 copies
Must NOT be mailed to IRS. Instruct client to take package to Certified Acceptance Agent, Acceptance Agent, or IRS office.

26. Protocol
Client goes to any CTC site for tax return prep. Original ID documents NOT required to prepare return.
Volunteer preparing return also completes Form(s) W-7
Print 2 copies
Explain signature requirement
Explain ID document requirement and ensure client has ITIN flyer
Instruct client to visit one of the Community Financial Centers during designated ITIN hours or IRS office on Rundberg (appointment required)

27. Resources
“Understanding Your IRS-Individual Taxpayer Identification Number” Publication 1915
ITIN Taxpayer Hotline
Janet Herrgesell,

28. CTC Resource Page

29. Questions?