If you look carefully at the byline of this Tax Services Advisory, you will notice something different, a new credential following the names of Messrs. Bakhai and Incera – CAA, for “Certified Acceptance Agent.” That is because per an Agreement with the IRS, as of September 25, 2013, MBAF is now a Certified Acceptance Agent and is authorized to act on behalf of alien individuals and other foreign persons to obtain an Individual Taxpayer Identification Number (ITIN).
Foreign tax payers wishing to obtain an ITIN need to understand that it is for federal tax purposes only. An ITIN does not entitle you to social security benefits and does not change your immigration status, or your right to work in the United States.
Individuals filing tax returns using an ITIN are not eligible for the earned income credit (EIC). Effective January 1, 2013, ITINs will expire after 5 years. Taxpayers who still need an ITIN after the end of the expiration period must reapply for a number.
In most cases those individuals applying for and using an ITIN, will need to file a W-7 form along with their tax return. As CAA’s MBAF is now in a position to provide specialized services to Non- Resident Individuals needing a Tax Id Number and can sign form W-7 on their behalf.
Messrs. Bakhai and Incera are among several Responsible Parties with MBAF who may act as CAA.
Taxation and filing issues for foreign persons doing business or earning income in the US can be complex. If you would like to benefit from our expertise in these areas or if you have further questions on this Advisory, do not hesitate to contact our International Tax Specialists, or call us at1-800-239-1474.