Itin Aa-caa Online Pre-Applicationtraining

7/29/2019 Itin Aa-caa Online Pre-Applicationtraining

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Internal Revenue Service presents

Individual TaxpayerIdentification Number

Acceptance Agents Training

Wage and InvestmentITIN Policy Section

Atlanta, GA


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ITIN Acceptance Agent Training

Welcome to

Individual TaxpayerIdentification Number

(ITIN) Acceptance AgentsTraining


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Beginning May 1, 2010, all new and renewingapplicants for the ITIN Acceptance AgentProgram are required by the Internal Revenue

Service (IRS) to complete this training beforesubmitting Form 13551,Application toParticipate in the IRS Acceptance AgentProgramfor approval.

(Continued)


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To meet the new training requirement,complete the following steps:

1. Review the following pages of this trainingmodule. Refer to information contained in theattached Appendix and IRS forms andpublications as suggested.

2. After reviewing the entire training module,answer the self-graded quiz located in thelast lesson titled, Acceptance Agent Training

Summary and Quiz. (Continued)


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3. Check your answers against the answer keylocated in the last section of the Appendix.

4. Print the Certification Statement foundon the final page of the training module.

5. Sign and date the Certification Statement

and attach it to your completed Form13551.


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This training module is designed to increase:

Your awareness of your role as an ITIN

Acceptance Agent and Your technical knowledge of the ITINprocess and W-7 application procedures.

We encourage you to share and discuss thisinformation with your business associates andemployees.


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Before beginning the training module, werecommend that you print or view copies of the

following forms and publications available atwww.irs.gov in English and in Spanish:

Form W-7 and Instructions,Application forIRS Individual Taxpayer Identification Number

Publication 1915, Understanding Your IRSITIN Publication 4327, Enabling Participation in

the Tax System
http://www.irs.gov/http://www.irs.gov/


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Lesson One

Role of the ITIN Acceptance Agentand the ITIN Process

At the end of this lesson, you will be able to:

List services Acceptance Agents provide totheir customers, and Explain when a taxpayer needs an ITIN.


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Role of the ITIN AcceptanceAgent and the ITIN Process

As an ITIN Acceptance Agent, you play a vitalrole in the efficient and effective processing of

Forms W-7 and U.S. tax returns because you: Offer services in close proximity to whereyour clients live and work, Provide ITIN bilingual literature to bettercommunicate with all taxpayers, Determine each clients eligibility for a SocialSecurity Number or an ITIN,

(Continued)


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Inform clients when their supportingidentification or documentation is unacceptable,

and Facilitate issuance of your clients ITINs inpartnership with the ITIN Policy Section and

Austin ITIN Operations.


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What is an ITIN?An ITIN is a tax processing number issued by

the IRS to certain resident and nonresidentaliens, their spouses, or dependents.

It is available to persons required to have a

taxpayer identification number for tax purposesbut who do not have, and are not eligible toobtain a Social Security Number (SSN).


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As an ITIN Acceptance Agent, you areresponsible for determining if your client is

eligible for an SSN before completingForm W-7.

If your client is eligible for an SSN, you mustadvise them to apply for one at the Social

Security Administration (SSA). If the SSA willnot issue your client an SSN, the client mustobtain a denial letter to attach to theirForm W-7.


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If you are unsure about your clients eligibilityfor an SSN, refer to the Social Security

Administration Web site at www.ssa.gov foradditional information.

Remember, an individual who is eligiblefor a SSN is not eligible for an ITIN.
http://www.ssa.gov/http://www.ssa.gov/


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Lesson Two

Completing Form W-7 Reason forApplying

At the end of this lesson you will be able to:

Determine your clients tax status and theirreason for submitting Form W-7, and Select appropriate box (a h) based on thatreason.


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Completing Form W-7Reason for Applying

Once you establish that your client needs anITIN, you will begin the process of completing

Form W-7.Determine your clients tax status. Whilethey may be a nonresident alien for non-IRSpurposes, they may be a resident alien fortaxpurposes.


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The following publications, available on line atwww.irs.gov, can help you understand an

individuals tax status: Publication 519, U.S. Tax Guide for Aliens Publication 901, U.S. Tax Treaties

For additional assistance call toll-free1-800-829-1040 to speak with an IRS taxpayerassistance representative. Outside the U.S. call215-516-1000 (not toll-free).


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Select the category under which your client fallsor their Reason for Applying by checking the

box (a h) that describes their reason forsubmitting Form W-7.

If you choose box a or f you must providetax treaty information on the lines providedbelow box h.


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Reason you are submitting Form W-7. Read the instructions for the

box you check. Caution: If you check box b, c, d, e, f, or g, you mustfile a tax return with Form W-7 unless you meet one of theexceptions (see instructions).a Nonresident alien required to get ITIN to claim tax treaty benefitb Nonresident alien filing a U.S. tax returnc U.S. resident alien (based on days present in the United States)

filing a U.S. tax returnd Dependent of U.S. citizen/resident alien Enter name and SSN/ITIN of U.S.e Spouse of U.S. citizen/resident alien citizen/resident alien (see instructions)

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

The following is taken from Form W-7.

(Continued)


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f Nonresident alien student, professor, or researcher filing a U.S. taxreturn or claiming an exceptiong Dependent/spouse of a nonresident alien holding a U.S. visah Other (see instructions) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _Additional information for a and f: Enter treaty country _ _ _ _ _ _ _ _and treaty article number _ _ _ _ _ _ _ _ _ _ _ _ _ _

(Continued from previous slide)

The following is taken from Form W-7.


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Box h. Other. If the reason for your clientsITIN request is not described in boxes athrough g, check box h and describe in detailthe reason your client is requesting an ITIN andattach supporting documents.

The next lesson provides information about

claiming an exception to the tax return filingrequirement. If applicable, enter the exceptionnumber, alpha subsection (if applicable) andcategory on line h.


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Lesson Three

Completing Form W-7Exceptions


Identify and apply exceptions to the taxreturn filing requirement that may be applicableto your client, and Enter required information for box h.


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(Continued)

What are the exceptions to the requirementto attach a U.S. individual income tax return to

Form W-7?Although most ITIN applicants must attach avalid U.S. individual income tax return to theirForm W-7 application, there are limitedcircumstances under which an ITIN will beissued without an attached tax return.


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If any of the five exceptions, listed in theExceptions section of the Appendix for thistraining module, apply to your client, you willnot need to attach a U.S. individual incometax return to your Form W-7.


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If you claim an exception to the requirementto submit a valid original U.S. individualincome tax return with Form W-7 you mustsubmit proofof your claim in lieu of the taxreturn.

For more information about exemptions and

to view examples of completed entries forExceptions see Publication 1915,Understanding Your IRS ITIN, www.irs.gov

also in Spanish under catalog 35265T.


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Lesson Four

Completing Form W-7Line by Line Instructions

At the end of this lesson you will be able to

complete Form W-7 by applying line-by-lineinstructions to lines 1a through 6c.


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Line 1aFirst nameEnter your clients first name, middle initial andlast name(s). Remember, some cultures use twosurnames and may use a hyphen or apostrophein names.

Enter the name(s) the way they appear on your

clients documents to prove foreign status andidentity.


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Line 1b First name(Name at birth ifdifferent)Enter your clients name as it appears on theirbirth certificate if it is different from the nameentered on line 1a.

For Example:

If your clients name changed due to marriage;but, their surname now is the same as theirsurname at birth, you do not need to completethis line.


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Line 2 Applicants mailing addressEnter your clients mailing address; but only ifit is different than the address you will enter onLine 3. IRS will send all ITIN correspondenceto this address.

Do not use a P.O. Box or an in care of (c/o)

address if you are just entering a country nameon Line 3.


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Line 3 Foreign addressEnter your clients permanent non-US address.If your client no longer has a permanentaddress in a foreign country because they haverelocated to the U.S. enter only the countryname on Line 3 such as; Spain, United

Kingdom, or Sweden.Do not use a P.O. Box or an in-care-of (c/o)address on Line 3.


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Line 4 Birth informationEnter date of birth in MM/DD/YYYY format. Forexample, enter January 1, 1972, as01/01/1972.

Country of birthEnter the name of the country where the

applicant was born. It must be a countryrecognized by the U.S. Department of State tobe eligible for an ITIN.


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Line 4 City, State or Province of birthEnter where shown (This information isoptional, but recommended).

Line 5 GenderCheck box for male or female.

Line 6a Country of CitizenshipDo not abbreviate. Enter entire country name.Enter both countries if dual citizenship(separated by a slash /).


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Line 6b Foreign Tax Identification NumberEnter your clients Foreign Tax I.D. Number.For example, if your client has a CanadianSocial Insurance Number, you should enter thatnumber.


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Line 6c Enter type of U.S. Visa, Number,and Expiration DateIf the applicant has a B-1/B-2 visa with number123456 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.


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Lesson Five

ITIN DocumentationAt the end of this lesson: You will be able to complete Form W-7 byapplying instructions for line 6d, You will be able to identify the two types ofITIN documentation, and You will be able to identify requirements for

submitting documentation.


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Completing Form W-7Line 6d and Documentation

Line 6d Identification of DocumentsYou should only enter information for one ofthe documents to prove foreign status and

identity. If you are submitting more than onedocument, attach a separate sheet of paper,entering the second document in the same

format.

(Continued)


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Line 6d Identification of documentsCheck the box for the type of document beingsubmitted. If it is not already shown on this line- Passport, Drivers License, State ID or fromthe USCIS (United States Customs &Immigration Services), check the box marked

Other and write-in the name of thedocument.

(Continued)


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Line 6d Identification of documentsEnter information relevant to the: Document Identification Number

The expiration date of that document inMM/DD/YYYY formatYour clients Entry date in U.S. in

MM/DD/YYYY format Agency that issued this document

*Reminder:Include the Entry date in U.S. ifyour client has entered the U.S.


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There are two categories of documentation:1. Supporting identification documents

prove foreign status and identity.

2.Supplemental documents* prove anexception is met, in lieu of filing andattaching a U.S. individual income tax return

to Form W-7. *Both Acceptance Agents andCertifying Acceptance Agents must submitthis documentation with Form W-7.


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Supporting Identification Documentationproves identity and foreign status.

IRS accepts from among 13 documents asshown in the Appendix section of this trainingmodule. A valid (unexpired) passport is the only

stand-alone document to prove both identityand foreign status.

(Continued)


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If a passport is not provided, submit at leasttwo other documents, with one containing aphotograph *(except for dependents orstudents under 18 years of age).

*Documentation for a dependent or studentunder 18 years of age must include a Civil Birth

certificate, unless a passport is used.


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Supporting Identification Documents mustbe:

Original or Copies certified by the issuing agency

(Continued)


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As of June 22, 2012, the IRSS no longeraccept copies notarized by U.S. Public notaryor certain Foreign Notary Publics, authorizedto certify documents under the HagueConvention.


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A listing of Supporting IdentificationDocumentation can be found in the Appendixof this training module.


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Acceptance Agents review supportingidentification documentation proving foreignstatus and identity, and attach it toForm W-7.


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Certifying Acceptance Agents review andvalidate supporting identificationdocumentation proving foreign status andidentity, and describe them in theirCertificate of Accuracy (COA).

Copies of the documents for primary and

secondary applicants must be sent to the IRSwith the W-7 COA. For dependents, you mustattach the original or certified copies from theissuing agency.


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Supplemental Documentation proves thatthe Exception criteria is met by: Taking the place of attaching a U.S.individual income tax return to Form W-7, and Demonstrating that your client meets thecriteria for claiming an exception.

All of the supplemental documents must beattached to Form W-7 before your clientsapplication will be processed.


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Reminder:Supplemental documentation must beattached to Form W-7 by both Acceptance

Agents and Certifying Acceptance Agents.Supplemental Documentation MUST NOT bedescribed in the COA, except for partnership

agreement information Exception 1(a).


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A Certificate of Accuracy (COA) iscompleted and *signed by CertifyingAcceptance Agents. It is attached toForm W-7 and declares that the agent reviewedthe documentation proving the applicantsidentity and foreign status.

* Only the authorized representative may signthe COA.


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After completing the COA, a CertifyingAcceptance Agent must attach a copy of thedocument for the primary and secondary andthe original document(s) for the dependentForm W-7.

A sample Form W-7 COA (Form 14194)is

provided in Publication 4520 (available form theIRS for use only by all Acceptance agents).


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Lesson Six


At the end of this lesson you will be able tocomplete Form W-7 by applying line-by-lineinstructions to lines 6e through 6g.


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Line 6eHave you previously received a U.S. temporaryidentification number (TIN) or employernumber (EIN)?

A TIN is a number that would have beenissued to an individual who had previously

made a payment or filed a tax return without aSSN or ITIN. An EIN is an Employer Identification Numberissued to you by the IRS.


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Line 6eCheck the appropriate box yes or no.

If yes, and you know the TIN, completeline 6f. If no, or you dont know the TIN, checkthe No box and Skip Line 6f.


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Line 6g Name of college/university /company

Enter the name of college, university or

company if reason box f is checked. Alsoenter the City and State in which it is located,and your clients length ofstay there.


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Lesson Seven

Signature Requirements

At the end of this lesson you will be able toapply signature requirements for Form W-7.


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Who can sign Form W-7 if the applicant is adependent under18 years of age?

The applicant, the applicants parent, or a court-appointed guardian. A copy of the court papersshowing legal guardianship must be attached.

(Continued)


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However, if an adult (other than a parent orcourt appointed guardian) signs FormW-7, they must have a Power of Attorney,

*Form 2848, from the applicants parent orcourt appointed guardian that authorizes themto sign. * Now available in Spanish.

The individual (if other than the applicant)should sign their name in the space providedand check the appropriate box that indicatestheir relationship to the applicant.


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Who can sign Form W-7 if the applicant is adependent 18 years of age and older?

The Applicant, or Any other individual (parent, court appointed

guardian, CPA, etc,) whom the applicantgrants Power of Attorney. In this case:

1.Attach Power of Attorney, Form 2848, toForm W-7 (if anyone other than theapplicant signs), and

(Continued)


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2.Someone other than the applicant shouldsign their name in the space provided andcheck the appropriate box that indicates

their relationship to the applicant.


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Application dateThe application must be dated when it is signedand 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 mayprevent the W-7 application form beingreturned for incomplete entries.


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Lesson Eight

Acceptance Agents USE ONLY

At the end of this lesson you will be able tocomplete the Acceptance Agents Use ONLYsection of Form W-7.

Acceptance Agents USE


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Acceptance Agent s USEONLY Section

The Acceptance Agents Use ONLY sectionmust include:

The signature and title (if any) of theAcceptance Agents Authorized Representative,based on information provided on your

Acceptance Agent Application, Form 13551,

The date the application was signed inMM/DD/YYYY format,

Acceptance Agents USE


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Acceptance Agent s USEONLY Section

The Acceptance Agents Use ONLY sectionmust include: (continued)

The name under which your business wasestablished as an Acceptance Agent, and thephone and fax numbers, and Your EIN and Office Code Number. The office

code number is an 8-digit number assigned toyou by the ITIN Policy Section. Generally, if youhave an EFIN it will be two zeros and yourEFIN (i.e. 00123456).


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Lesson Nine

Review of the Top 10 FormW-7 Errors

At the end of this lesson you will be betterprepared to complete and submit error-freeForms W-7 to the IRS for processing.



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Top 10Form W-7 Errors

When Forms W-7 are incorrectly prepared,incomplete or when information ordocumentation is missing, your clients

application is suspended or rejected causing adelay in the application process.

Shown on the following slides are descriptions

of the top errors or most common errors seenby the IRS and ways you can avoid makingthese errors.


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1. You did not check the appropriate alpha box(boxes ah) indicating the Reason yourclient is submitting Form W-7 or

Form W-7(SP).

2. You did not attach supporting identificationdocumentation to prove your clients identity

and foreign status. With the exception ofchildren or students under 18 years of age, atleast one of the documents must contain arecent photograph.(#2 continued)


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2. (continued) (Certifying Acceptance Agentswill submit a Certificate Of Accuracy withcopies of the documentation for primary and

secondary and original or certified copies fordependents.)

3.You did not attach a U.S. tax return to

show a tax purpose for obtaining an ITIN.You must attach an original U.S. tax returnunless your client meets the criteria forclaiming one of the Exceptions 1 - 5.


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4.You attached supporting identificationdocumentation that is not on the list of (13)acceptable documents to prove identity and

foreign status.5. You submitted a Form W-7 for a dependent

not shown on your clients U.S. tax return; oryou did not submit a Form W-7 for adependent listed on your clients U.S. taxreturn.


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6. You submitted a Form W-7 for a dependentwho is not a U.S. citizen or resident alien anddoes not reside in Mexico or Canada.

7. You did not enter your clients foreignaddress on Line 3, if applicable. If your clientnow resides in the United States, enter their

U.S. address as the mailing address on Line2, and country name only on Line 3.


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8. You did not enter all of your clients birthinformation on Line 4, as required.

9. You did not complete Line 6d, to identifyyour supporting documentation or the dateyour client entered the United States.


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10. Your client did not sign their name as itappears on Line 1. If another signatureappears other than the applicant, you will

need to attach a Power of Attorney andcheck the box that describes the delegatesrelationship to applicant.


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Lesson Ten

ITIN Acceptance AgentTraining Summary


Complete the training certification process.


ITIN A A


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This training module for ITIN AcceptanceAgents provided you with information toincrease:

Your awareness of your role as an ITINAcceptance Agent, and Your technical knowledge of the ITIN

process and W-7 application procedures.

ITIN A t A t


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By reviewing the previous pages and referencematerials, you have completed this requiredtraining module for ITIN Acceptance Agents.

ITIN A t A t


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It is important that you print the final page ofthe training module containing theCertification Statement.

You must sign and date the CertificationStatement and attach it to your completedForm13551 before submitting your applicationto the IRS for approval.

ITIN A t A t


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Send Form 13551, along with your signed anddated Certification Statement, and completedfingerprint card or evidence of professional

status, if required, to:

Internal Revenue Service3651 S. IH 35Stop 6380AUSC

Austin, TX 78741


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Appendix

A di


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AppendixExceptions

A di


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AppendixExceptions

A di


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AppendixExceptions

Appendi


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AppendixExceptions

Exception 2b continues

Appendix


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AppendixExceptions

Exception 2b continues

Appendix


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AppendixExceptions

Appendix


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AppendixExceptions

Appendix


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AppendixExceptions

Appendix


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AppendixExceptions

See Publication 1915, Understanding Your IRSITIN, for more information about Exceptions,

available at www.irs.gov.


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Appendix


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ppSupporting Documentation

Type of Supporting Documentation ForeignStatus

Identity

National Identification Card (must becurrent, and contain name, photograph,

address, date of birth and expiration date)

X X

U.S. State Identification Card X

Foreign Voters Registration Card X X

Civil Birth Certificate* X * X

Medical Records - valid for dependents only -under 6 years of age. *

X * X

School Records - valid for dependents only -under 14 years of age (under age 18 if astudent). *

X * X

* Documents can be used to prove foreign status only if he documents are foreign

Training Certification Statement


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for ITIN Acceptance Agents

Sign, date and attach to Form 13551

I certify that I have read and answered the test questions in 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 isexpected of me if I am approved to be an Acceptance Agent.

Signature ___________________________ Date __________________

Itin Aa-caa Online Pre-Applicationtraining

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