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Early refund request from IRS on US property sale withholding will come this much sooner than same r

Ah, where to find answer that IRS or no one else on the web discusses and this answer is impacting your ability to make a logical decision of how to proceed. Here you go. You know your USA property sale will be at a loss with no tax due to IRS and therefore have no interest in providing 15% withholding of the sales price to IRS and only able to claim it back after a very prolonged period. So, you prepared a withholding exemption certificate. But – the buyer refused to acknowledge it and anyway remitted withholding to IRS or you only provided it to buyer after closing. What now? With some modifications and additions, you can use that withholding exemption certificate to request an early refun

Trump's elimination of exemption claims will hit Canadians (and other foreign 1040NR filers) in

To calculate taxable income, taxpayers subtract from their adjusted gross income (AGI) the appropriate number of personal exemptions. Canadians get preferential treatment over citizens of most other countries regarding exemptions - if one was a U.S. national or a resident of Canada or Mexico, one can claim an exemption for a child or other dependent (who has US tax ID – ITIN) and, if married, his spouse on the same terms as U.S. citizens. An individual claimed as a dependent must be a citizen, national, or resident of the United States, or a resident of Canada or Mexico. Canadian and other country resident 1040NR filers have gotten spoiled, so to speak, using the personal exemption claim to

New easy way to obtain social security rejection letter required for certain ITIN applications

Social Security Statements can now be accessed online, sign up at: https://www.ssa.gov/myaccount One is also able to receive U.S. Social Security Benefit Verification Letter stating that: one never received Social Security benefits, Supplemental Security Income or Medicare one received benefits in the past but do not currently receive them This is helpful to ITIN applicants described below: One may not apply for ITIN (Form W-7) if one has an SSN or if one is eligible to get an SSN. One is eligible for an SSN if one is a U.S. citizen or if one has been admitted by the United States for permanent residence or U.S. employment. If the SSA will not issue one an SSN, one must get a letter of denia

FIRPTA withholding is sometimes 10% not 15% (sale of US property by foreigner)

Effective for dispositions since February 16, 2016, Public Law (PL) 114-113, the Protecting Americans from Tax Hikes (PATH) Act, generally increased FIRPTA withholding tax on sale of US property from a foreigner to 15 percent of the amount realized. But, surprise, 10% can still apply (against all the training of legal clerks and title assistants who handle the paperwork but who haven't studied the law itself in depth). For a sale of a property for use by the buyer as a residence where the amount realized by the seller is $1 million or less the withholding rate remained at 10%. This is verified in IRS Internal Revenue Manual (IRM) 21.8.5 Miscellaneous FIRPTA Related Issues.

Online sellers, including Canadian sellers, impacted by new sales tax law

There is US sale tax ‘nexus’ law change via the recent U.S. Supreme Court ruling; specifically online sales will much more easily be subjected to US sales tax. Also Canadian (and other non-US sellers) with no USA physical presence who previously did not have nexus in a state, may now find they have nexus for sales tax purposes. Quill, which set a standard requiring substantial physical presence before a state could enforce the sales tax collection responsibilities on a seller, was overturned. Companies will now need to consider: whether they have physical presence nexus in a given state whether their sales activity in a state exceeds economic nexus thresholds While South Dakota v. Wayfair,

And the next expiring ITINs are ...

The IRS is now accepting ITIN renewal applications for: ITINs that have not been used on a federal tax return at least once in the last three consecutive years and ITINs with middle digits 73, 74, 75, 76, 77, 81 or 82 that will expire at the end of the year. (For example: 9NN-73-NNNN) need to be renewed even if the taxpayer has used it in the last three years. IRS will soon begin sending the CP-48 ITIN Expiration Notice to such taxpayers. Make sure your address on file with IRS is up to date. The way to change your address with IRS is to change it on your tax return OR file Form 8822 Change of Address OR by telephone 6:00 am to 11:00 pm (EST) M-F at (267) 941-1000 US Tax Services urges our c

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