A Taxpayer Identification Number (TIN) is an identification number used by the Internal Revenue Service (IRS) to process tax returns. A TIN can be either a Social Security Number issued by the Social Security Administration or an alternate TIN issued by the IRS.
Non-resident aliens cannot obtain a social security number and instead must obtain an Individual Taxpayer Identification Number or ITIN from the IRS. An ITIN is needed when a non-resident alien is involved in a financial transaction that is subject to IRS information reporting or federal tax withholding.
There are
many reasons a Canadian may need an ITIN. Some of the most common reason are:
You own a U.S. rental property
You sold U.S. real estate
You had gambling winnings
You are the spouse or dependent of someone
who files a US tax return
You are receiving a royalty or pension
income which is entitled to tax treaty benefits
You have a U.S. income tax filing
requirement
The ITIN is required to file an individual non-resident tax return ( 1040-NR), process a tax refund, and withhold taxes on certain types of Income in the US.
Please note
that the ITIN is for tax purposes only. It does not entitle the holder to
social security benefits, nor does it entitle the holder to immigrate or work
in the United States. If an individual
is eligible to be legally employed in the United States, that person should not
apply for an ITIN, but must apply for an SSN.
To obtain an
ITIN, the applicant must complete IRS Form W-7. This form can be obtained directly from IRS
website ( http://www.irs.gov). The IRS requires original or certified copies of
documents that substantiate the information on W-7. The applicant may either
mail the documentation, along with the Form W-7, to the address shown in the
Form W-7 Instructions, present it at IRS walk-in offices, or process an application
through an Acceptance Agent authorized by the IRS.
For any
information regarding the above, please contact Renate Harrison at 613-747-2459
x 307 or at rharrison@hazlolaw.com.
