Foreign national tax filing

[Questionguy101]

A foreign national received bank interest income here in 2008. He forgot to file a form so the bank took tax withholding from the interest income.

I know he needs to file a Form 1040NR to claim the refund of the withholding tax. But since he does not have a SSN, does he have to apply for a ITIN before he can file the 1040NR for the refund? Is there a more simple way to do it?

[Koss]

Needs an ITIN

But he can't "apply for an ITIN before he files the 1040NR."

You do both at the same time. The IRS won't issue an ITIN unless a return is filed with the application.

You attach Form W-7 to the front of the income tax return. On the tax return, you simply leave the SSN field blank.

BMK

[Questionguy101]

But he can't "apply for an ITIN before he files the 1040NR."

You do both at the same time. The IRS won't issue an ITIN unless a return is filed with the application.

You attach Form W-7 to the front of the income tax return. On the tax return, you simply leave the SSN field blank.

BMK

Thank you for your reply.

If I remember correctly, they require certain identification documents (like passport or an ID issued by the foreign national's home country) to go along with the W-7 in order to apply for an ITIN. So are we supposed to send the identification documents together with the W-7 and the 1040NR?

[Koss]

ITIN Application

Yes, they have to include identification with the Form W-7.

A passport is the best identification available, because it proves both identity and foreign status in one single document. Other types of ID are accepted. But only a passport satisfies both requirements. If they use other types of ID, then they have to submit two pieces of ID. The requirements are very specific. They're in the instructions for Form W-7.

Photocopies generally will not be accepted. They either have to be certified copies or original documents. Depending on what state you live in, a notary public may or may not be able to provide certified copies. Some jurisdictions do not allow notaries to perform this function.

They can send the original documents, and the IRS will send them back after processing the W-7. That takes about six weeks.

If they send certified copies, the IRS will not send them back.

Most people don't want to send the original documents. And they may not be able to get certified copies. Or if they have certified copies of something like a birth certificate, they may not want to give it up.

There are two ways to file a W-7 without having to send in originals or certified copies:

(1) Present the Form W-7, with the tax return, in person at an IRS office. The IRS rep will inspect and copy the original documents or the certified copies. The taxpayer will not have to give up the documents. Not all IRS offices support this function.

(2) Present the Form W-7, with the tax return, to a ITIN Acceptance Agent. The agent is authorized by the IRS to inspect and copy the ID documents. The Acceptance Agent signs the W-7 (but not the tax return). The Acceptance Agent then submits the W-7 and the tax return to the IRS, with a document certifying the authenticity of the ID documents that were presented. The taxpayer does not have to give up the documents.

I think there's a list of acceptance agents on the IRS website.

Most of them charge anywhere from $25 to $100 for processing the Form W-7.

Most will accept a W-7 with a completed tax return prepared by someone else. But I don't think they are required to do this.

Good luck!

BMK