Individual Taxpayer Identification Number
All rental property owners in the US must have an Individual Taxpayer Identification Number (ITIN). The application for the ITIN should be made at the time the property is purchased, or within a few weeks of purchase.
We are Certified Acceptance Agents before the IRS and in recognition of this, we are allowed to submit applications on a client’s behalf without the usual requirement of mailing their original passport (or other original documents) to the IRS in Texas.
The ITIN is a number issued by the Internal Revenue Service for individuals who are not eligible for a US Social Security Number. It is easily recognized – a 9-digit number beginning with a “9” e.g., 9XX-XX-XXXX. This tax identification number enables the individual to file non–resident US tax returns, as required by Federal Law. The ITIN is also required by banks, lending institutions and management companies. It is needed in order to obtain a license to rent out the property, and if not produced, may result in a 30% loss of rental income to the IRS.
The ITIN does not authorize work in the US or provide eligibility for Social Security benefits or the Earned Income Tax Credit. ITINs are not valid identification outside the tax system.
The ITIN application and subsequent renewals are obtained by submitting a signed W7 form.
ITINs are issued for a three-year period and if no Tax Returns are filed, they will expire and they must be renewed. The IRS have recently completed a renewal process for all ITIN’s issued prior to 2013. This rolling renewal process commenced in 2016 will continue for the foreseeable future. Providing US Tax Returns are filed annually the ITIN will remain active.
We can assist in this process by applying for your renewal after verifying your identity either in person or via an approved video interview. Providing you apply in the renewal year; you will retain your original number and receive an up-to-date certificate with a new expiration date.