18 April 2023 · Bureaucracy Without Pain · USA
Getting an ITIN Without Setting Foot in the USA
Bureaucracy Without Pain, One Stamp at a Time
Author: Clara Nguyen, EA (Enrolled Agent), international tax specialist & coffee-powered nomad.
Why This Guide Exists
In the past decade I’ve helped more than 600 non-residents—from Amazon KDP authors in Chiang Mai to angel investors in Lisbon—navigate the alphabet soup of U.S. tax IDs. Many were shocked to learn they could have avoided a 30% withholding tax on royalties, rebates, or stock dividends if only they’d applied for an ITIN earlier. Worse, most believed you had to fly to Miami, camp outside an IRS office, and surrender a passport for weeks. Not true.
By the time you finish reading you’ll know:
- Whether you actually need an ITIN or can skip the hassle.
- How to gather the exact paperwork (no more, no less).
- Where to find an IRS-authorised Certifying Acceptance Agent (CAA) abroad who hands back your passport on the spot.
- The five rejection triggers I see every season—and how to dodge them.
And yes, we’ll keep things concise, step-by-step, and mercifully free of legalese. Sound good? Let’s roll.
Who Needs an ITIN—and Who Doesn’t
An Individual Taxpayer Identification Number (ITIN) is a nine-digit number (format: 9XX-7X-XXXX) issued by the IRS to individuals who must file a U.S. tax return or receive certain U.S.-source payments but aren’t eligible for a Social Security Number (SSN). The classic candidates are:
| Scenario | Do you need an ITIN? | Why |
|---|---|---|
| You earn U.S. royalties via Amazon, Apple, or Spotify | Yes | Form W-8BEN requires an ITIN to claim treaty-reduced withholding |
| You own U.S. rental property (via LLC, partnership, or directly) | Yes | You or the property manager must file Form 1040-NR |
| You’re a non-resident spouse claimed as a dependent on a joint U.S. return | Yes | IRS rejects “NRA” placeholders |
| You trade U.S. stocks through a brokerage that withholds 30% | Maybe | If filing 1040-NR for refund, then yes |
| You only hold U.S. ETFs in a tax-advantaged retirement account at home | No | Withholding is final; no filing obligation |
| You’re a digital nomad using Foreign Earned Income Exclusion vs Foreign Tax Credit | Probably not | Those apply to U.S. citizens/residents, not ITIN seekers |
Bottom line: If you have U.S. tax filing or withholding issues and can’t get an SSN, you’re in ITIN territory.
How to Apply Without Boarding a Plane
You have three pathways:
-
IRS Certifying Acceptance Agent (CAA) Abroad
My favourite. A CAA verifies your identity and tax documentation, copies your passport, and sends Form W-7 to the IRS. You keep your passport—vital if you live out of it. -
U.S. Embassy or Consulate
Consular staff can certify passports, but appointments are scarce, staff unfamiliar with IRS nuance, and you still mail the packet yourself. A last resort. -
Mail Original Passport Directly to IRS (Austin Service Center)
Cheaper but terrifying. Expect 8+ weeks without your document, risk of loss, and delays if rejection occurs.
Below we’ll focus on the CAA route.
Acceptable Certifying Acceptance Agents Abroad
The IRS keeps a global registry of CAAs—tiny but mighty. Here’s how to leverage it.
1. Locate an Agent
Navigate to IRS Publication 4520. Filter by country, then by “Full Services.” Full agents can certify passports; “Limited” cannot.
Top CAA hubs (2023 data):
- United Kingdom – 28 agents
- Canada – 21
- Mexico – 19
- Germany – 9
- UAE – 4
Do not fret if your city isn’t listed. Most CAAs function remotely via video call for non-passport documents and meet physically only for passport verification. I’ve attended pop-up sessions in coworking spaces from Medellín to Ho Chi Minh City.
Pro-tip: Ask whether the agent charges a “traveling kit” fee if they fly in for group appointments. Split it with peers.
2. Verify Credentials
Always:
- Cross-check the agent’s EIN and CAA number on the IRS list.
- Request proof of active EA, CPA, or attorney license.
- Google for client reviews—Facebook expat groups are brutally honest.
3. Book Early
High season is January–April. Slots vanish like free prosecco at a Paris meetup. Book 4–6 weeks ahead.
The Document Checklist (Keep It Lean)
Nothing cooks an ITIN faster than too much paper. IRS reviewers skim—give them clarity.
Mandatory for Everyone
-
Form W-7 (Rev. 12-2019)
Complete but leave the signature blank; you’ll sign in front of the CAA. -
Proof of Identity & Foreign Status
Single document preferred: Valid, unexpired passport (original only).
If you can’t provide a passport: two documents needed (e.g., national ID + foreign driver’s license). -
Federal Tax Return or Exception Statement
Unless you qualify for an exception, attach the specific form that triggers your ITIN:
• Form 1040-NR for rental income or trading refunds
• Form 8288-A for FIRPTA refund
• Exception 1(d) letter for royalties—often the CAA drafts this
- Proof of Residency (for dependents only)
School records or medical cards if the applicant is under 18.
Optional But Wise
- Copy of passport ID page for your records—IRS will not return originals.
- DHL/UPS return envelope if you must mail originals; skip if using a CAA.
My One-Folder Rule
I hand clients a transparent folder labelled:
Front pocket: Form W-7 + tax return
Middle pocket: Passport
Rear pocket: Supporting letters/records
When everything has a home, nothing wanders off.
The Application—A Step-by-Step Walk-through
Step 1: Pre-fill Form W-7 Online
Use the IRS PDF wizard. Pay attention to:
- Box h—select “Exception” if applicable (royalties, mortgage interest, etc.).
- Line b—enter foreign country of citizenship exactly as in passport; avoid abbreviations.
- Line 6d—enter only digits for passport number; no spaces.
Save and print.
Step 2: Meet the CAA
Bring your folder. A typical 30-minute session:
- CAA inspects the passport under UV light.
- You sign Form W-7 and adjacent certification page.
- CAA attaches a “Certificate of Accuracy” (COA) on letterhead.
- Payment—fees range USD 300–500. Worth it for peace of mind.
Step 3: CAA Mails Packet via Tracked Courier
Always track. Delivery to IRS Austin averages 4–6 days from Europe, 2–3 from Mexico.
Step 4: Wait (But Not in the Dark)
Use the IRS hotline: +1-267-941-1000 (International). Wait 10 weeks before the first inquiry.
Pull-quote: “No news isn’t bad news—it’s typical IRS news.” —Me, calming panicked clients since 2014
Step 5: Receive Your ITIN Letter (CP565)
When the elusive white envelope arrives, scan it. Brokers, publishers, and property managers will ask for the number in W-8BEN forms.
Common Rejection Causes—and How to Dodge Them
Roughly 1 in 4 ITIN applications are bounced back. Over a decade, the same culprits recur.
-
Passport Copy Instead of Original/CAA Certified
Fix: Always present original passport to a CAA or mail it. No exceptions. -
Missing Signature on W-7 or Tax Return
Fix: Sign in front of CAA; double-check spouse/dependent signatures. -
Illegible Passport Number (handwritten)
Fix: Type everything. If handwriting is required, use block letters. -
Inconsistent Names
Fix: Mirror passport details. If your Thai surname has five words, include every word. -
Incorrect Exception Letter
Example: Claiming royalty income but attaching a brokerage statement.
Fix: Use the template your CAA provides; align wording with IRS Exception 1(d).
If rejected, you’ll get a CP567 notice detailing the reason. You have 45 days to resubmit before the case closes—otherwise you start over.
What Happens After You Have an ITIN?
- Update W-8BEN with your withholding agent.
- File future U.S. returns using the ITIN until you qualify for an SSN.
- Watch renewal dates—ITINs lapse after three years of non-use.
And don’t forget broader compliance. If you later acquire a U.S. LLC or hit threshold balances, acquaint yourself with Understanding Foreign Asset Reporting Requirements.
Real-World Anecdotes (Names Changed)
Liu, a YouTuber in Taiwan, mailed her passport directly to Austin. COVID-era delays turned eight weeks into six months. She couldn’t board a flight to Singapore for a paid campaign and lost USD 14,000. She now evangelises CAAs.
Carlos & Maya, Berlin-based DJs, claimed a 15% treaty rate on Spotify royalties. Spotify still withheld 30% because their W-8BEN had “Applied For” in the ITIN field. We rushed an application via a London CAA; eight weeks later, Spotify issued retroactive refunds worth €7,600.
Frequently Asked Questions
Q: Does having an ITIN make me a U.S. tax resident?
A: No. Residency hinges on presence (Substantial Presence Test) or green card status. ITIN is merely an identifier.
Q: Can my newborn get an ITIN abroad?
A: Yes, but you’ll need an original birth certificate and medical records proving foreign residency.
Q: I later receive an SSN. What happens to my ITIN?
A: Notify the IRS. The ITIN is “overlaid” so future filings reference your SSN.
Q: My country has no CAAs. Can I use a U.S.-based CAA remotely?
A: Yes, but you must still courier your passport to them for face-to-face or video verification, which defeats the no-mail goal. Better schedule a consular appointment instead.
The Bureaucracy-Without-Pain Checklist
- ✅ Confirm you need an ITIN
- ✅ Find a full-service CAA (book early)
- ✅ Gather only required documents; passport is king
- ✅ Pre-fill W-7, sign in person
- ✅ Track the packet, mark 10-week reminder
- ✅ Update W-8BEN the moment the ITIN letter lands
Stick to those six, and you’ll glide through IRS red tape faster than TSA PreCheck on a Tuesday morning.
Final Thoughts
For international earners, an ITIN often pays for itself in a single royalty cycle or dividend payout. Done right, the process is dull, quick, and drama-free. Done wrong, it morphs into a bureaucratic escape room you didn’t sign up for.
At BorderPilot we blend data—like live CAA wait times and treaty withholding rates—with human expertise to blueprint stress-free relocations. Ready to make your next move? Create your free relocation plan today and let’s demystify every cross-border hurdle together.