Non US citizens, also known as Foreign Nationals, buying or sell real estate in the United States need to have a tax id number. The tax id number will be required at closing by the Title Company. If you do not qualify for a Social Security number issued by the USA, then you’ll need to obtain an ITIN.
When you apply for an ITIN you need to file an Application for ITIN, and an additional tax form. This tax form is often a request for an exception from the 10% withholding requirement. The USA has tax treaties with many countries, and certain exceptions apply to non USA citizens selling real estate transactions. Sometimes with the ITIN application there is an income tax return, such as a 1040NR. In all cases the forms are typically prepared and filed by a Certifying Acceptance Agent.
Call John Starnes at (248) 434-3985, People’s Tax Center. He is a CAA, licensed by the IRS to expedite the issuance of an ITIN. He’s the expert.
Certifying Acceptance Agents (CAA) are the most experienced and fastest method of obtaining an ITIN. When utilizing a CAA you DO NOT need to surrender or release your passport to the IRS. Applying for an ITIN requires completing multiple IRS tax forms, and having the proper identify documentation. Because the process is difficult and time consuming the IRS has established CAA’s to expedite the issuance of ITINs. The IRS has conducted strict education, testing and background reviews on CAA’s. CAA’s operate with an agreement with the IRS that allows the CAA to review the identification documentation, complete the ITIN application, tax forms, and expedite issuance of an ITIN.