Itin

[nkustura]

A client is a general partner in a partnership and has E-1 visa. His wife is on E-2 visa (dependent of E-1 visa holder, as well as two of his doughters). All 4 of them have SSN. A husband and wife have been filing a joing return with two doughters as their dependents. They have two other doughters that don't have social security numbers. They got rejecte when applied. Can they apply for ITINs for the two doughters that don't have the social security numbers. I read about ITIN requirement and it sounds like they meet the requirements, but I have never done a return with ITIN so any guidance will be greatly appreciated.

Thanks,

[David1980]

Assuming the two dependents that don't have SSN meet the requirements to be claimed as dependents then yes, they can apply for ITINs. They made the documentation required for obtaining an ITIN a bit higher than it used to be (apparently was a lot of ITINs being issued that perhaps shouldn't have been.) You used to be able to submit a notarized copy of a passport/documents for example, while now they require either the original or a certified copy (not to be confused with a notarized copy - certified is done by the issuing agency). And ITINs have an expiration date so you have to reapply every 5 years? The tax return claiming the dependents with the ITIN applications is mailed to the IRS ITIN operations in Austin. W-7 instructions should have the necessary info for how to apply.

http://www.irs.gov/uac/Newsroom/Updated-ITIN-Procedure-Changes-Announced

[ATSMAN]

I would NOT recommend mailing the original passport to IRS. If it gets lost you are really screwed!

[WTorres]

Passports

I mailed in the passports for 2 ITIN applications along with the completed 1040 last year. I mailed Priorty Mail (of course) and never had any problems with getting the passports back.

[ATSMAN]

That is good to know but as a tax preparer I would advise my client of the risk of loss of their foreign issued passport. Since that is their primary ID and probably the only thing that proves they are here legally, loss of that can mean serious legal challenges.

[David1980]

I would NOT recommend mailing the original passport to IRS. If it gets lost you are really screwed!

I agree, but for some what's the alternative? If the issuing agency doesn't issue certified copies and they have nothing else to use for documentation, for example.

[nkustura]

Itin

Thank you all for your feedback. I will have to discuss this with the client again and see if he can obtain certified copies.

If he decides to apply for ITIN for those two kids, do I claim them as a dependents on the return that's being attached to the ITIN application? What should I put for SSN?

Thank you again.