Introduction to FTIN
A Foreign Tax Identification Number (FTIN) is a nine-digit number issued by the Internal Revenue Service (IRS) to nonresident aliens, foreign entities, and estates of decedents that need to have a US tax identification number. It is used for various tax purposes, such as filing US income tax returns, claiming tax treaty benefits, and opening US bank accounts.
Who Needs an FTIN?
Nonresident aliens, foreign entities, and estates of decedents that need to have a US tax identification number need to obtain an FTIN. This includes nonresident aliens who:
- Work in the United States
- Own a business in the United States
- Receive US-source income, such as interest, dividends, or royalties
- File a US income tax return
- Claim tax treaty benefits
How to Apply for an FTIN
To apply for an FTIN, you need to complete Form W-8BEN and submit it to the IRS. Form W-8BEN is available on the IRS website. You can also apply for an FTIN online through the IRS website.
What Information Do I Need to Apply for an FTIN?
To apply for an FTIN, you will need to provide the following information:
- Your name
- Your date of birth
- Your address
- Your country of citizenship
- Your foreign tax identification number (if you have one)
- The reason you need an FTIN
How Long Does It Take to Get an FTIN?
The IRS typically processes FTIN applications within four to six weeks. However, it may take longer if the IRS needs additional information.
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What Should I Do If I Lose My FTIN?
If you lose your FTIN, you can request a duplicate FTIN by completing Form W-8BEN-R and submitting it to the IRS. Form W-8BEN-R is available on the IRS website.
Related Questions and Answers
Q: Who is exempt from obtaining an FTIN?
A: The following individuals are exempt from obtaining an FTIN:
- Foreign governments
- Central banks of issue
- International organizations
- Residents of US territories
Q: What are the consequences of not having an FTIN?
A: If you are required to have an FTIN and you do not obtain one, you may be subject to a withholding tax of 30% on certain types of US-source income. You may also be subject to penalties.
Q: What is the difference between an FTIN and a Social Security number (SSN)?
A: An FTIN is a nine-digit number issued by the IRS to nonresident aliens, foreign entities, and estates of decedents that need to have a US tax identification number. An SSN is a nine-digit number issued by the Social Security Administration to US citizens and certain nonresident aliens who work in the United States.
Conclusion
If you are a nonresident alien, foreign entity, or estate of a decedent that needs to have a US tax identification number, you need to obtain an FTIN. You can apply for an FTIN online or by mail. The IRS typically processes FTIN applications within four to six weeks.
