Internal Revenue Service presents Individual Taxpayer Identification

Internal Revenue Service presents Individual Taxpayer Identification Number Acceptance Agents Training Wage and Investment ITIN Policy Section Atlanta, GA 1 Rev. 10-2019

ITIN Acceptance Agent Training Welcome to Individual Taxpayer Identification Number (ITIN) Acceptance Agents Training 2

ITIN Acceptance Agent Training Effective May 1, 2010, all new and renewing applicants for the ITIN Acceptance Agent Program are required by the Internal Revenue Service (IRS) to complete this training before submitting Form 13551, Application to Participate in the IRS Acceptance Agent Program, for approval. (Continued ) 3

ITIN Acceptance Agent Training To meet the new training requirement, complete the following steps: 1.Review the following pages of this training module. Refer to information contained in IRS forms and publications as suggested. (Continued ) 4

ITIN Acceptance Agent Training 2. Print the Certification Statement found on the final page of the training module. 3. Sign and date the Certification Statement and attach it to your completed Form 13551. Note: Only certification statements with a current date will be accepted. 5

ITIN Acceptance Agent Training This training module is designed to increase: Your awareness of your role as an ITIN Acceptance Agent and Your technical knowledge of the ITIN process and W-7 application procedures. We encourage you to share and discuss this information with your business associates and employees. 6

ITIN Acceptance Agent Training Before beginning the training module, we recommend that you print or view copies of the following forms and publications available at www.irs.gov in English and in Spanish: Form W-7 and Instructions, Application for IRS Individual Taxpayer Identification Number Publication 1915, Understanding Your IRS ITIN Publication 4327, Enabling Participation 7

ITIN Acceptance Agent Training Lesson One Role of the ITIN Acceptance Agent and the ITIN Process At the end of this lesson, you will be able to: List services Acceptance Agents provide to their customers, and Explain when a taxpayer needs an ITIN. 8

Role of the ITIN Acceptance Agent and the ITIN Process As an ITIN Acceptance Agent, you play a vital role in the efficient and effective processing of Forms W-7 and U.S. tax returns because you: Offer services in close proximity to where your clients live and work, Provide ITIN bilingual literature to better communicate with all taxpayers, Determine each client’s eligibility for a Social Security Number or an ITIN, 9

Role of the ITIN Acceptance Agent and the ITIN Process Inform clients when their supporting identification or documentation is unacceptable, and Facilitate issuance of your clients’ ITINs in partnership with the ITIN Policy Section and Austin ITIN Operations. 10

Role of the ITIN Acceptance Agent and the ITIN Process Reminders: 1. Exception 1 (d) has been updated to indicate that self-generated income statements will only be accepted with a copy of the contract, or a letter with a post-marked envelope addressed from the withholding agent. 11

Role of the ITIN Acceptance Agent and the ITIN Process 2. You may not e-file a tax return(s) using an ITIN in the year in which it is received. If you apply for and receive an ITIN for your client this year, you may not e-file any tax return using that ITIN (including prior year returns) until next year. 3. Apply using the most current Form W-7, Application for IRS Individual Taxpayer Identification Number or Form W-7 (SP). 12

Role of the ITIN Acceptance Agent and the ITIN Process What is an ITIN? An ITIN is a tax processing number issued by the IRS to certain resident and nonresident aliens, their spouses, or dependents. It is available to persons required to have a taxpayer identification number for federal tax purposes but who do not have, and are not eligible to obtain a Social Security Number (SSN). 13

Role of the ITIN Acceptance Agent and the ITIN Process As an ITIN Acceptance Agent, you are responsible for determining if your client is eligible for an SSN before completing Form W-7. If your client is eligible for an SSN, you must advise them to apply for one at the Social Security Administration (SSA). If the SSA will not issue your client an SSN, the client must obtain a denial letter to attach to their Form W-7. 14

Role of the ITIN Acceptance Agent and the ITIN Process If you are unsure about your client’s eligibility for an SSN, refer to the Social Security Administration Web site at www.ssa.gov for additional information. Remember, an individual who is eligible for a SSN is not eligible for an ITIN. 15

ITIN Acceptance Agent Training Lesson Two Completing Reason You’re Submitting Form W-7 At the end of this lesson you will be able to: Determine your client’s tax status and their reason for submitting Form W-7, and Select appropriate box (a – h) based on that reason. 16

Completing Reason You’re Submitting Form W-7 Once you establish that your client needs an ITIN, you will begin the process of completing Form W-7. Note: Spouses and dependents residing outside of the United States shouldn’t apply for, or renew, an individual taxpayer identification number (ITIN) unless they qualify for an allowable tax benefit. Examples include a dependent parent who qualifies the primary taxpayer to claim the head of household filing status, or a dependent who files his or her own tax return. The individual must be listed on an attached U.S. federal tax return with the schedule or form that applies to the allowable tax benefit. 17

Completing Reason You’re Submitting Form W-7 Determine your client’s “tax status.” While they may be a “nonresident alien” for non-IRS purposes, they may be a “resident alien” for tax purposes. 18

Completing Reason You’re Submitting Form W-7 The following publications, available online at www.irs.gov, can help you understand an individual’s tax status: Publication 519, U.S. Tax Guide for Aliens Publication 901, U.S. Tax Treaties For additional assistance call toll-free 1-800-829-1040 to speak with an IRS taxpayer assistance representative. Outside the U.S. call 1-267-941-1000 (not 19

Completing Reason You’re Submitting Form W-7 Select the category or reason for applying by checking the box (“a” – “h”) that describes your client’s reason for submitting Form W-7. If more than one box applies to your client, check the box that best explains the reason for submitting Form W-7. If you choose box “a” or “f” you must provide tax treaty information on the lines 20

Completing Reason You’re Submitting Form W-7 The following is taken from Form W-7. (Continued) 21

Completing Reason You’re Submitting Form W-7 Box h. Other. If the reason for your client’s ITIN request is not described in boxes “a” through “g”, check box “h” and describe in detail the reason your client is requesting an ITIN and attach supporting documents. The next lesson provides information about claiming an exception to the tax return filing requirement. If applicable, enter the exception number, alpha subsection (if applicable) and category on 22

ITIN Acceptance Agent Training Lesson Three Completing Form W-7 Exceptions At the end of this lesson you will be able to: Identify and apply exceptions to the tax return filing requirement that may be applicable to your client, and 23

Completing Form W-7 Exceptions What are the “Exceptions” to the requirement to attach a U.S. individual income tax return to Form W-7? Although most ITIN applicants must attach a valid U.S. individual income tax return to their Form W-7 application, there are limited circumstances under which an ITIN will be issued without an attached tax return. (Continued) 24

Completing Form W-7 Exceptions If any of the five Exceptions, listed in the “Exceptions” section of the Appendix for this training module, apply to your client, you will not need to attach a U.S. individual income tax return to your Form W-7. 25

Completing Form W-7 Exceptions If you claim an Exception to the requirement to submit a valid original U.S. individual income tax return with Form W-7 you must submit proof of your claim in lieu of the tax return. For more information about Exceptions and to view examples of completed entries see Publication 1915, Understanding Your IRS ITIN on www.irs.gov. Also available in Spanish under catalog number 35265T. 26

ITIN Acceptance Agent Training Lesson Four Completing Form W-7 Line by Line Instructions At the end of this lesson you will be able to complete Form W-7 by applying lineby-line instructions to lines 1a through 6g. 27

Completing Form W-7 Line by Line Instructions Application Type Check the applicable box to indicate if your client is: 1. 2. A first-time applicant applying for a new ITIN, or Seeking to renew an ITIN that they already have. Note: If Renew an Existing ITIN is checked, complete lines 6e and 6f of Form W-7/W-7(SP). 28

Completing Form W-7 Line by Line Instructions Line 1a First name Enter your client’s first name, middle initial and last name(s). Remember, some cultures use two surnames and may use a hyphen or apostrophe in names. Enter the name(s) the way they appear on your client’s documents to prove “foreign status” and “identity.” 29

Completing Form W-7 Line by Line Instructions Line 1b First name (Name at birth if different) Enter your client’s name as it appears on their birth certificate if it is different from the name entered on line 1a. For Example: If your client’s name changed due to marriage, but their surname now is the same as their surname at birth, you do not need to complete this line. 30

Completing Form W-7 Line by Line Instructions Line 2 Applicant’s mailing address Enter your client’s mailing address, but only if it is different than the address you will enter on Line 3. IRS will send all ITIN correspondence to this address. Do not use a P.O. Box or an in care of (c/o) address if you are just entering a country name on Line 3. 31

Completing Form W-7 Line by Line Instructions Line 3 Foreign (non-U.S.) address Enter your client’s permanent non-U.S. address. If your client no longer has a permanent address in a foreign country because they have relocated to the U.S. enter only the name of the foreign country where they last resided on Line 3 (i.e. Spain, United Kingdom, Sweden or Mexico, etc.). If the addresses on lines 2 and 3 are the same, enter “Same” on Line 3. 32

Completing Form W-7 Line by Line Instructions Line 4 Birth information Enter date of birth in MM/DD/YYYY format. For example, enter January 1, 1972 as 01/01/1972. Country of birth Enter the name of the country where the applicant was born. It must be a country recognized by the U.S. Department of State to be eligible for an ITIN. 33

Completing Form W-7 Line by Line Instructions Line 4 City, State or Province of birth If available, enter this information. Line 5 Gender Check box for Male or Female. Line 6a Country(ies) of Citizenship Do not abbreviate. Enter complete name of the country of which your client is a citizen. Enter two countries if dual citizenship (separate by a slash “/”). 34

Completing Form W-7 Line by Line Instructions Line 6b Foreign Tax Identification Number Enter your client’s Foreign Tax I.D. Number if their country of residence has issued them one. For example, if your client has a Canadian Social Insurance Number, you should enter that number. 35

Completing Form W-7 Line by Line Instructions Line 6c Type of U.S. Visa Enter type of U.S. Visa, Number, and Expiration Date. If the applicant has a B1/B-2 visa with number 123456 and an expiration date of December 31, 2010, enter: “B-1/B-2, 123456, 12/31/2010” If the Visa has been issued under duration of stay, enter “D/S” as the expiration date. 36

Completing Form W-7 Line by Line Instructions Line 6d Identification Document(s) Submitted Check the appropriate box for the type of identity document(s) your client provided. If your client is submitting multiple documents, use only the information from one to complete Line 6d. Attach a separate sheet of paper and write the information for the second document in 37

Completing Form W-7 Line by Line Instructions 38

Completing Form W-7 Line by Line Instructions Line 6d Identification Document(s) Submitted (Cont’d) The “Date of entry into the United States” must contain the complete date on which your client entered the U.S., if applicable. Enter the date in a MM/DD/YYYY format. For example, if your client entered the U.S. on November 2, 2014, enter as 11/02/2014. If your client has never entered the U.S., enter “Never entered the United States” on this line. 39

Completing Form W-7 Line by Line Instructions Line 6e/6f Previous ITIN or Internal Revenue Service Number (IRSN) If your client was ever issued an ITIN or a temporary Internal Revenue Service Number (IRSN), check the “Yes” box on Line 6e and enter the number and name under which it was issued on Line 6f. If they were never issued an ITIN or IRSN, or they did not provide it to you, check the “No/Do not know” box on Line 6e. 40

Completing Form W-7 Line by Line Instructions Line 6g Name of College /University/or Company Complete only if you check reason for applying box “f” for your client. Enter the name of the educational institution, city and state in which it is located, and the length of your client’s stay. Enter similar information for your client’s company if they are temporarily in the U.S. for business purposes. 41

ITIN Acceptance Agent Training Lesson Five ITIN Documentation At the end of this lesson you will be able to identify: The two categories of ITIN documentation The ITIN Documentation Requirements, and Acceptance Agent responsibilities regarding 42

ITIN Documentation There are two categories of documentation: 1. Supporting Identification Documentation - Proves “foreign status”, “identity” and, if applicable, “residency”. 2. Exception Documentation - Proves that an exception to the requirement to attach a valid U.S. federal individual income tax return to Form W-7 is met. 43

ITIN Documentation Supporting Identification Documentation. IRS accepts 13 documents as shown in the Appendix section of this training module. A valid (unexpired) passport is the only stand-alone document to prove both identity and foreign status*. 44

ITIN Documentation Supporting Identification Documentation. Dependent Passport Requirements A passport that doesn’t have a date of entry won’t be accepted as a stand-alone identification document for dependents, unless they are dependents of U.S. military personnel stationed overseas. In these cases, applicants will be required to submit at least one of the following original documents in addition to the 45

ITIN Documentation Supporting Identification Documentation. Dependent Passport Requirements If under 6 years of age: A U.S. medical record, school record, or U.S. state identification card that lists the applicant’s name and U.S. address, or a U.S. visa. If at least 6 years of age but under 18 years of age: A U.S. school record, U.S. state identification card, or driver’s license that lists the applicant’s name and U.S. address, or a U.S. visa. If 18 years of age or older: U.S. school record, rental statement from a U.S. property, utility bill for a U.S. property, or a bank statement, U.S. state identification card or driver’s license that lists the applicant’s name and 46

ITIN Documentation If a passport is not provided, submit at least two other documents, with one containing a photograph *(except for dependents or students under 18 years of age). *Documentation for a dependent or student under 18 years of age must include a Civil Birth Certificate, unless a passport is provided. 47

ITIN Documentation Supporting Identification Documentation must be: Original, or Certified copies from the issuing agency Note: Certified copies from the issuing agency are not the same as Notarized documents. Notarized documents are not accepted. (Continued ) 48

ITIN Documentation As of June 22, 2012, the IRS no longer accept copies notarized by U.S. Public notary or certain Foreign Notary Publics, authorized to certify documents under the Hague Convention. A listing of Supporting Identification Documentation can be found in the Appendix at the end of this training module. 49

ITIN Documentation There are two types of Acceptance Agents: Acceptance Agents (AA) Certified Acceptance Agents (CAA) The types of Acceptance Agents are outlined in Revenue Procedure 2006-10. Acceptance Agents (AA) review supporting identification documentation proving foreign status and identity, and attach original or certified copies from the issuing agency to Form W-7. 50

ITIN Documentation Certified Acceptance Agents (CAA) review and validate supporting identification documentation proving foreign status and identity except for foreign military identification card, and identify them on their Form W7(COA), Certificate of Accuracy. Copies of documents for primary and secondary applicants must be sent to the IRS with the W7(COA). For dependents, CAAs may verify the passport and birth certificate only. Copies of the documents must be attached to W-7(COA). 51

ITIN Documentation Form W-7(COA), Certificate of Accuracy: Completed and *signed by CAAs Clarify type of document attached (i.e. foreign status and identity) Attached to Form W-7, and Declares that the CAA reviewed the documentation provided by the applicant and certifies that it is authentic, complete and accurate based on procedures in their IRS signed agreement. Only the Authorized Representative can sign the W-7(COA). 52

ITIN Documentation A sample Form W-7(COA), Certificate of Accuracy is provided in Publication 4520 (available from the IRS for use only by Acceptance Agents). 53

ITIN Documentation Exception Documentation proves that the “Exception” criteria is met and: Takes the place of attaching a U.S. Individual Income Tax Return to Form W-7, and Demonstrates that your client meets the criteria for claiming an exception. All required exception documentation must be attached to Form W-7 before 54

ITIN Documentation Exception documentation: Must be attached to Form W-7 by both Acceptance Agents and Certified Acceptance Agents. Does not need to be described on Form W-7(COA), except for partnership agreement information when Exception 1(a) is claimed. Does not replace the requirement to 55

ITIN Acceptance Agent Training Lesson Six Signature Requirements At the end of this lesson you will be able to apply signature requirements for Form W-7. 56

Signature Requirements Who can sign Form W-7 if the applicant is a dependent under 18 years of age? The applicant, the applicant’s parent, or a court-appointed guardian. A copy of the court papers showing legal guardianship must be attached. (Continued ) 57

Signature Requirements If an adult (other than a parent or court appointed guardian) signs Form W-7, they must have a Power of Attorney, *Form 2848, from the applicant’s parent or court appointed guardian that authorizes them to sign. * Now available in Spanish. The individual (if other than the applicant) should sign their name in the space provided and check the appropriate box that indicates their relationship to the applicant. 58

Signature Requirements Who can sign Form W-7 if the applicant is a dependent 18 years of age and older? The Applicant, or Any other individual (parent, court appointed guardian, or another individual etc.) whom the applicant grants Power of Attorney. In this case: 1. Attach Power of Attorney, Form 2848, to Form W-7 (if anyone other than the applicant signs), and 59

Signature Requirements 2. Someone other than the applicant should sign their name in the space provided and check the appropriate box that indicates their relationship to the applicant. (Continued) 60

Signature Requirements Who can sign Form W-7 if the applicant cannot sign their name? The Applicant must sign their mark (e.g. an “X” or a thumbprint) in the presence of a witness, and The witness’ signature is required and must be identified as that of a witness. 61

Signature Requirements Application date The application must be dated when it is signed and submitted by the AA or CAA within five (5) business days. Phone number (optional) IRS may use this telephone number to resolve any discrepancies in the application, which may prevent the W-7 application from being returned for incomplete entries. 62

ITIN Acceptance Agent Training Lesson Seven Acceptance Agent’s USE ONLY At the end of this lesson you will be able to complete the Acceptance Agent’s Use ONLY section of Form W-7. 63

Acceptance Agent’s USE ONLY Section The Acceptance Agent’s Use ONLY section must include: The signature and, if applicable, title of the Acceptance Agent’s Authorized Representative based on information provided on your Acceptance Agent Application( Form 13551), The date the application was signed in MM/DD/YYYY format 64

Acceptance Agent’s USE ONLY Section The Acceptance Agent’s Use ONLY section must include: The name under which your business was established as an Acceptance Agent, and the phone and fax numbers, and Your EIN and Office Code Number. The Office Code number is an 8-digit number assigned to you by the ITIN Policy Section. Generally, if you have an EFIN, it will be two zeros and your EFIN (i.e. 00123456). 65

ITIN Acceptance Agent Training Lesson Eight Review of the Top 10 Form W-7 Errors At the end of this lesson you will be better prepared to complete and submit error-free Forms W-7 to the IRS for processing. 66

Top 10 Form W-7 Errors When Forms W-7 are incorrectly prepared, incomplete or if information or documentation is missing, your client’s application will be suspended or rejected, causing a delay in the application process. The following slides will provide descriptions of the top errors or most common errors seen by the IRS and ways you can avoid making these errors. 67

Top 10 Form W-7 Errors 1. Not checking the appropriate alpha box (boxes “a” – “h”) indicating the reason your client is submitting Form W-7/W7(SP). 2. Not attaching supporting identification documentation to prove your client’s identity and foreign status. With the exception of children or students under 18 years of age, at least one of the documents must contain a recent 68

Top 10 Form W-7 Errors 2. (continued) CAAs must submit a Form W-7(COA) Certificate Of Accuracy with copies of the documentation for all applicants (Note: CAAs can only verify passports and birth certificates for dependents) 3.Not attaching a valid U.S. tax return to show a tax purpose for obtaining an ITIN. You must attach an original U.S. tax return unless your client meets the criteria for claiming one of the 69

Top 10 Form W-7 Errors 4.Attaching supporting identification documentation that is not on the list of thirteen (13) acceptable documents to prove identity and foreign status. 5. Submitting a Form W-7 for a dependent not shown on your client’s U.S. tax return; or not submitting a Form W-7 for a dependent listed on your client’s U.S. tax return. 70

Top 10 Form W-7 Errors 6. Submitting a Form W-7 for a dependent who is not a U.S. citizen or resident alien and does not reside in Mexico or Canada. 7. Not entering your client’s foreign address on Line 3, if applicable. If your client now resides in the United States, enter their U.S. address as the mailing address on Line 2, and “country” name only on Line 3. If the foreign address is the same as the mailing address on Line 71

Top 10 Form W-7 Errors 8. Not entering all of your client’s birth information on Line 4, as required. 9.Not completing Line 6d, to specify the identification documentation or the date your client entered the United States. 72

Top 10 Form W-7 Errors 10. Your client did not sign their name as it appears on Line 1. If another signature appears other than the applicant, you will need to attach a Power of Attorney and check the box that describes the “delegate’s relationship to applicant.” 73

ITIN Acceptance Agent Training Lesson Nine ITIN Acceptance Agent Training Summary At the end of this lesson you will be able to: Complete the training certification process. 74

ITIN Acceptance Agent Training Summary This training module for ITIN Acceptance Agents provided you with information to increase: Your awareness of your role as an ITIN Acceptance Agent, and Your technical knowledge of the ITIN process and W-7 application procedures. 75

ITIN Acceptance Agent Training Summary By reviewing the previous pages and reference materials, you have completed this required training module for ITIN Acceptance Agents. 76

ITIN Acceptance Agent Training Summary It is important that you print the final page of the training module containing the Certification Statement. You must sign and date the Certification Statement and attach it to your completed Form 13551 before submitting your application to the IRS for approval. 77

ITIN Acceptance Agent Training Summary Send Form 13551, along with your signed and dated certifications for Forensic Document Training (CAA only), AA Mandatory Training, completed fingerprint cards or evidence of professional status or ERO status and PTIN to: Internal Revenue Service 3651 S. IH 35 Stop 6380 AUSC 78

ITIN Acceptance Agent Training Appendix 79

Appendix Exceptions 80

Appendix Exceptions 81

Appendix Exceptions 82

Appendix Exceptions 83

Appendix Exceptions 84

Appendix Exceptions 85

Appendix Exceptions 86

Appendix Exceptions See Publication 1915, Understanding Your IRS ITIN, for more information about Exceptions, available at www.irs.gov. 87

Appendix Supporting Documentation Type of Supporting Documentation Foreign Status Identit y PASSPORT (the only stand-alone document) X X United States Citizenship and Immigration Services (USCIS) Photo Identification X X Visa issued by the US Department of State X X United States Driver’s License X United States Military Identification Card X Foreign Driver’s License X Foreign Military Identification Card X X (Continued) 88

Appendix Supporting Documentation Type of Supporting Documentation National Identification Card (must contain name, photograph, address, date of birth and expiration date) Foreign Status Identit y X X U.S. State Identification Card X Foreign Voter’s Registration Card X X Civil Birth Certificate X * X Medical Records (valid only for dependents under age 6) X * X School Records (valid only for a dependent under age 18, if a student) X * X * May be used to establish foreign status only if the documents are foreign. 89

Training Certification Statement for ITIN Acceptance Agents Sign, date and attach to Form 13551 I certify that I have read this training module. I further certify that I understand how to complete Form W-7 and the supporting and supplemental documentation to attach that apply. I am aware of who may sign Form W-7, and when a Power of Attorney Form 2848 is required. I fully comprehend that if I am approved as a Certifying Acceptance Agent, or my business entity, only the person listed on Line 5 of the attached Form 13551, Application to Participate in the IRS Acceptance Agent Program, will be authorized to sign and submit a Certificate of Accuracy. I confirm that I have read Revenue Procedure 2006-10 and understand what is expected of me if I am approved to be an Acceptance Agent. Signature Date Print Name 90