ITIN for foreign Chessplayer

[erchess]

Chessplayers who come from other countries and lack Social Security Numbers usually have 30% of any prize over $600 withheld because the US Chess Federation tells tournament organizers that this is a legal requirement. For the same reason, players whether foreign or domestic who have SSNs are issued Forms 1099 Misc for any prizes over $600. I don't know what happens in the cases of foreign players who do not have SSNs or for that matter domestic players who do not give their numbers to the organizers.

What I want to know is whether an ITIN would negate the withholding requirement, and if so whether one can be obtained in less time than is necessary to obtain a Social Security Number. For that matter, how long does it take to obtain a valid SSN?

[Bees Knees]

TTB, page 23-5 says you do backup withholding on those who do not furnish the tp a TIN. It says nothing, nor does Pub 505 say anything about doing backup withholding simply because the tp is a nonresident alien. Presumably, a nonresident alien with an ITIN would not need backup withholding on earnings. Other rules, however, such as the withholding rules on gambling winnings and wages, might require normal federal income tax withholding on the earnings.

[erchess]

Thank you

How long does it take to get a SSN and how long does it take an ITIN? It would be very helpful to Chessplayers if this could be accomplished within say ten days by an online application.

[George Boutwell]

How long does it take to get a SSN and how long does it take an ITIN? It would be very helpful to Chessplayers if this could be accomplished within say ten days by an online application.

If they are eligible for an SSN (probably, they are not) they cannot apply for an ITIN.

[erchess]

Two Points George

First, you meant to day that "if they are eligible for a SSN they MAY not apply for an ITIN" or ."....it is illegal for them to apply for an ITIN". Absolutely anyone including this humble writer who has a SSN CAN apply for an ITIN by submitting the relevant form. There's no legal reason why one would want to, but one CAN.

Second, neither you nor anyone else has answered my question about how long it takes to get either number.

[Uncle Sam]

ITIN for foreign Chessplayer

While I don't have an answer to your question-why can't the U.S. Chess Federation officially contact IRS regarding this issue to work out a pre plan to avoid situations like this in the future-say before an event where they know there will be foreign chessplayers?

Otherwise you've got a continuous stalemate.

[George Boutwell]

Now you're in trouble

why can't the U.S. Chess Federation officially contact IRS regarding this issue to work out a pre plan

As erchy would point out, anyone CAN contact IRS. It's not illegal. But if they did, IRS would probably laugh at them for asking about a pre plan, and suggest that what they need is a post plan.

[Bees Knees]

Second, neither you nor anyone else has answered my question about how long it takes to get either number.

Instructions for Form W-7, page 3 says: “Allow 4 to 6 weeks for the IRS to notify you in writing of your ITIN.”

As to the time it takes to get a SSN, it depends. According to this web site: http://www.ssa.gov/pubs/10002.html, it could take an additional 12 weeks if you do not get a SSN at the time of your child’s birth in the hospital. That indicates to me that any adult trying to apply for a SSN would also have an extra long wait before a number is issued.

[erchess]

The USCF is a non profit organization where

most of the work is done by volunteers. There is an election coming up to elect members to its governing board and all of the candidates agree that the organization is in serious difficulty. The last thing it wants to do is face liability for giving tax advice to foreign players. I was thinking that if the job could be done in a reasonable time frame I might offer to assist foreign players at events that are near me or that I am playing in. I already do my tax work on my laptop and because I have chess related programs on it also I already take the laptop to every Chess Tournament I play in. (Of course I back up my tax client data in case something happens to the laptop.)

[gkaiseril]

most of the work is done by volunteers. There is an election coming up to elect members to its governing board and all of the candidates agree that the organization is in serious difficulty. The last thing it wants to do is face liability for giving tax advice to foreign players. I was thinking that if the job could be done in a reasonable time frame I might offer to assist foreign players at events that are near me or that I am playing in. I already do my tax work on my laptop and because I have chess related programs on it also I already take the laptop to every Chess Tournament I play in. (Of course I back up my tax client data in case something happens to the laptop.)

Backup is nice to restore your data, but if your laptop is stolen or lost how are your clients' and their dependents SSNs and other personal information protected? Is not there some expectation of privacy by your clients on the confidentiality of their data?

Would you like your attorney or doctor taking your personal records to the horse track?

[erchess]

I should have clarified

Backup is nice to restore your data, but if your laptop is stolen or lost how are your clients' and their dependents SSNs and other personal information protected? Is not there some expectation of privacy by your clients on the confidentiality of their data?

Would you like your attorney or doctor taking your personal records to the horse track?

I take the data off the laptop regularly including before any trips with it out of town.

[jainen]

Here in California

>>any adult trying to apply for a SSN would also have an extra long wait before a number is issued<<

Here in California, an adult can get a Social Security number very quickly by simply making it up on the spot. I can't guarantee that would work with the tournament, but it certainly would for the hotel where the tournament is held!