IRS Tightens ITIN Requirements | Law Firm Newswire

IRS Tightens ITIN Requirements

Dallas, TX (Law Firm Newswire) October 15, 2012 – The Internal Revenue Service (IRS) has announced changes to its procedures for obtaining Individual Taxpayer Identification Numbers (ITINs).

ITINs are used by foreign nationals who do not have a Social Security Number (SSN), but do have a tax filing requirement. The new policy requires original documentation, such as birth certificates and passports, or certified copies from the issuing agency, rather than notarized copies. In addition, applications will not be accepted from certifying acceptance agents, unless they include the original documentation. The IRS said that the changes “strengthen its procedures,” but the policy will make it more difficult to obtain ITINs.

“The IRS issues ITINs to foreign nationals who are not eligible to receive a Social Security Number which includes, as a subset, foreign nationals without status in the United States but who have a tax filing requirement independent of their status,” said Stewart Rabinowitz, a Dallas immigration attorney. “Making it harder for some foreign nationals to obtain an ITIN so they can pay US income taxes, makes it easier for those persons to choose to avoid filing a tax return and paying taxes altogether. Which action, as a society, do we want to encourage?”

The IRS action is an interim policy change, active through the end of 2012, and applies to the majority of applicants submitting the Application for IRS ITIN, Form W-7. The agency will be accepting suggestions from stakeholders regarding the policy, and will issue final rules before the 2013 filing season, when the majority of ITIN requests come in. The IRS said it wanted to continue to improve the program, while reducing barriers to people filing their tax returns.

Two categories of people needing ITINs are not impacted by the changes: military spouses and dependents who do not have an SSN, and nonresident aliens claiming tax treaty benefits. These individuals may continue to follow the instructions in the current W-7 form.

To learn more, contact a Dallas immigration lawyer or Dallas immigration attorney at Rabinowitz & Rabinowitz, P.C., call 1.972.233.6200 or visit http://www.rabinowitzrabinowitz.com.

Rabinowitz & Rabinowitz, P.C.
14901 Quorum Drive, Suite 580
Dallas, Texas 75254
Phone: 972.233.6200

[mappress mapid="46"]

  • CRS Issues Report on Repurposing Funds to Build a Border Wall
    The Congressional Research Service (CRS) published a report that examines the federal statutes that the Trump Administration has cited to repurpose funds from existing appropriations to construct a wall along the U.S.-Mexico border. CRS also discussed multiple lawsuits that have been filed challenging the Administration’s actions. Congress appropriated $1.375 billion to the Department of Homeland ...
  • USCIS to Limit Some Nonimmigrant Change or Extension of Status Applicants Based on New Public Charge Rule
    The Department of Homeland Security (DHS) on August 14, 2019, announced its final rule on inadmissibility on public charge grounds that imposes a new public benefit condition on individuals who apply for a change or extension of nonimmigrant status. The new rule was originally scheduled to take effect on October 15, 2019. But on October ...
  • USCIS Issues Proposed New H-1B Registration Rules
    U.S. Citizenship and Immigration Services (USCIS) has proposed a rule change that requires each H-1B petitioning employer to pay a $10 filing fee for every electronic registration submitted to the agency for each H-1B worker who is to be counted in the H-1B cap selection. H-1B petitioning employers whose foreign national beneficiary qualifies for the ...

Tags: , ,



Get headlines from Law Firm Newswire sent right to your inbox.

* indicates required