Federal Employer Identification Number (FEIN)
Do you require an Employer Identification Number (EIN) ?
- Do you have US source income and are a non-resident alien or foreign entity? If yes, the IRS is in the process of enforcing compliance on tax withholding on U.S. source income payments to foreign persons.
Your clients may request you obtain a U.S. withholding certificate with a U.S. TIN to claim an exemption from, or reduction in, U.S. tax withholding. A U.S. TIN is also required for information reporting on a 1042-S unless an exception applies (per the form instructions).
How to apply for a TIN?
Foreign Entity - apply on form SS-4 - we can assist you with obtaining this number.
Individuals - apply on form W-7 -please refer to Individual Taxpayer ID Number (ITIN).
- Do you have a U.S. tax return filing obligation?
A TIN is required to file a U.S. tax return, where one is required. No tax return is required from foreign persons whose only income is fixed or determinable annual or periodic (FDAP) if the correct amount of tax was withheld (including tax treaty exemptions).
A tax return is required if the income was effectively connected to the conduct of U.S. trade or business (ECI) even if exempt by treaty.
There is an exception for non-resident aliens whose only income is wages and they do not exceed the personal exemption amount.