Is there a Foreign Partner of the US Partnership?
If the answer is yes and there is no ITIN, the foreign partner needs to be notified via the partnership to obtain an Individual Taxpayer Identification Number (ITIN) as soon as possible.
Once notified, foreign partners will apply by filing Form W-7 with the IRS. They can do so themselves or avail the services of a certifying acceptance agent who will be able to assist a complete and accurate filing.
If the ITIN is not received before the due date of the Form 1065 Partnership return filing deadline, the partnership will enter "applied for" and the application date on the K-1 issued to the partner (and submit to the IRS).
It is the partnerships responsibility to verify each foreign partner has a TIN (whether an SSN or ITIN).
Why do I need an ITIN as a foreign partner?
All US partnerships report the income and gains on a Form K-1 to the underlying partner based on the units held by them (unless they elect to be treated as a corporation). As such, a US tax number is required for the foreign partner.
If the foreign partner already has an SSN, this is used.
If no SSN exists, then they will be required to file a Form W-7 to obtain an ITIN so the partnership can declare their share of income/losses and expenses on the partnership return.
The partnership may also hold the maximum tax of 37% for the foreign partner. To claim back any excess tax paid, the foreign partner will need to file a Form 1040NR each year. An ITIN is required for filing the US tax return and claiming the refund back from the IRS.
What is a certifying acceptance agent (CAA)?
A certifying acceptance agent or CAA is a person or persons who has a license from the IRS to prepare and certify for Form W-7 ITIN applications with the Internal Revenue Service (IRS).
Just Breve is a certified acceptance agent and can assist with any and all types of ITIN applications, including those of US partnerships (required for Form 1065 and Form K-1).
Based near London Heathrow near the M4 junction. We assist ITIN applicants on a regular basis and have a 100% track record of acceptance.
We have some wonderful reviews on Google as well as under our testimonials section of the website.
Contact us today:
Tel: 0208 1444632
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