Changes to Individual Taxpayer Identification Number (ITIN)

The Internal Revenue Service (IRS) recently announced changes to the Individual Taxpayer Identification Number (ITIN) program that will require some individuals to renew their ITIN. The IRS will send a letter to taxpayers with expiring ITINs.

Which ITINs will expire January 1, 2017?

The following ITINs will expire January 1, 2017:

• ITINs with middle digits of 78 and 79 (e.g. 9NN-78-NNNN). The IRS will send Letter 5821 to taxpayers with these expiring ITINs.
• ITINs that have not been used on a tax return for Tax Year 2013, Tax Year 2014, or Tax Year 2015 

Which ITINs will NOT expire January 1, 2017?

Any ITIN that does not have a middle digit of 78 or 79 and was used on a tax return for Tax Year 2013, Tax Year 2014, or Tax Year 2015 will not expire January 1, 2017.

What should I do if my ITIN is expiring January 1, 2017?

You will need to renew your ITIN if you will be filing a tax return or claim for refund after the ITIN expires and you will be using the expiring ITIN on that tax return or claim for refund.  You should not renew an ITIN if the ITIN holder now has or is qualified to get a social security number (SSN). See Q&A12.

When may I renew my ITIN that will expire January 1, 2017?

Beginning October 1, 2016, taxpayers whose ITIN will expire on January 1, 2017 can begin the renewal process.

For more information on ITINs expiring and answers to some common questions about the program changes, visit https://www.irs.gov/individuals/itin-expiration-faqs on the IRS website.

Tax Identity Theft Awareness Week: Phone Scams

This is Tax Identity Theft Awareness Week, and we want you to be aware of tax scams! Today’s lesson: phone scams.

Do not fall victim to scammers who call and say they are with the Internal Revenue Service (IRS)! There has been an increase in aggressive phone scams where people call and threaten you with police arrest or deportation if you don’t pay them.

Even if you do owe taxes…

·         The IRS will NEVER call and demand immediate payment over the phone.

·         The IRS will NEVER try to threaten or intimidate you, demand payment with a prepaid debit card, or ask for your credit card or debit card number over the phone.

·         The IRS will NEVER threaten to call the police or immigration agents if you don’t pay.

If you get a call like this, report it to the Treasury Inspector General for Tax Administration by calling 800-366-4484 or visiting www.tigta.gov. Also, report it to the Federal Trade Commission at www.ftc.gov/complaint.

For more information on tax scams, watch this video and read this IRS Tax Tip. 

Visit uscis.gov/avoidscams or uscis.gov/eviteestafas to learn how to recognize and avoid immigration scams and find authorized legal services. 

Help for International Taxpayers Begins on IRS.gov; Six YouTube Videos Now Available to Assist

IRS Newswire, 01/07/2016

The Internal Revenue Service reminds U.S. taxpayers living abroad, as well as other international taxpayers, that IRS.gov provides the best starting place for getting answers to their important tax questions. This filing season, six new YouTube videos on common issues that international taxpayers face are also available.

The International Taxpayers page on IRS.gov is packed with information designed to help taxpayers living abroad, resident aliens, nonresident aliens, residents of U.S. territories and foreign students. The web site also features a directory that includes overseas tax preparers.

“These resources provide critical information to assist taxpayers with many different needs,” said IRS Commissioner John Koskinen.  “Tax issues can be even more challenging for international taxpayers, and IRS.gov provides important details they need to understand their obligations.”

International taxpayers will find the online IRS Tax Map and the International Tax Topic Index to be valuable sources of answers for their tax questions. These online tools assemble or group IRS forms, publications and web pages by subject and provide users with a single entry point to find tax information.

In 2015, the IRS also created videos to assist international taxpayers with some of their most common questions. The videos cover the following international taxpayer topics:

• Filing Requirements
• Foreign Earned Income Exclusion
• Individual Taxpayer Identification Number (ITIN)
• Filing Status if Married to a Nonresident Alien
• Foreign Tax Credit
• Introduction to the International Taxpayers Web Page

By law, Americans living abroad, as well as many non-U.S. citizens, must file a U.S. income tax return. In addition, key tax benefits, such as the foreign earned income exclusion, are only available to those who file a U.S. return. These online resources and videos are designed to help affected taxpayers understand how these rules apply to them.

Federal law requires U.S. citizens and resident aliens to report worldwide income, including income from foreign trusts and foreign bank and securities accounts. In most cases, affected taxpayers need to complete and attach Schedule B to their tax return. Part III of Schedule B asks about the existence of foreign accounts, such as bank and securities accounts, and usually requires U.S. citizens to report the country in which each account is located.

Taxpayers with an interest in, or signature or other authority over, foreign financial accounts whose aggregate value exceeded $10,000 at any time during 2015 must file with the Treasury Department a Financial Crimes Enforcement Network (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts (FBAR). It is due to the Treasury Department by June 30, 2016, must be filed electronically and is only available online through the BSA E-Filing System website. For details regarding the FBAR requirements, see Report of Foreign Bank and Financial Accounts (FBAR).

U.S. taxpayers with foreign accounts should also understand their reporting requirements under the Foreign Account Tax Compliance Act (FATCA). Third-party information reporting from foreign financial institutions or through intergovernmental agreements began in 2015.

In addition, under FATCA, certain U.S. taxpayers holding financial assets outside the United States must report those assets to the IRS on Form 8938, Statement of Specified Foreign Financial Assets.  Generally, U.S. citizens, resident aliens and certain non-resident aliens must report specified foreign financial assets on this form if the aggregate value of those assets exceeds certain thresholds. Reporting thresholds vary based on whether a taxpayer files a joint income tax return or lives abroad. See the instructions for Form 8938 for more information.

To help avoid delays with tax refunds, taxpayers living abroad should visit the Helpful Tips for Effectively Receiving a Tax Refund for Taxpayers Living Abroad page.

The IRS has also added two new international tax topics to Tax Trails, the agency’s interactive online tool that helps taxpayers get answers to their general tax questions. The two topics involve filing requirements and filing status of a U.S. citizen or resident alien married to a nonresident alien.

More information on the tax rules that apply to U.S. citizens and resident aliens living abroad can be found in, Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad, available on IRS.gov.

IRS Spotlights Year-Round Tax Help in 6 Languages

From the IRS Newswire, 07/01/2015

The Internal Revenue Service today reminded taxpayers that a wide range of publications and online resources are available in six languages on IRS.gov, the agency’s popular web site.

IRS.gov features online resources in Chinese, Korean, Russian and Vietnamese, as well as English and Spanish. These multilingual resources are available throughout the year, not just during tax season.

Available resources include the agency’s cornerstone Taxpayer Bill of Rights document, Publication 1, titled “Your Rights as a Taxpayer.” The publication outlines the 10 key provisions that make up the Taxpayer Bill of Rights, including the right to: be informed, quality service, pay no more than the correct amount of tax, challenge the IRS’s position and be heard, appeal an IRS decision in an independent forum, finality, privacy, confidentiality, retain representation and a fair and just tax system.

Also available in English and Spanish is Publication 17, Your Federal Income Tax. This comprehensive tax guide for individuals can be a worthwhile year-round reference for anyone still working on their 2014 return, as well as those planning for the years ahead. Other online resources are designed to help taxpayers understand the audit process, the collection process, the special rules that apply to taxpayers abroad and how to respond to IRS bills and notices. There is also information on tax fraud, including tips on spotting a phone scam, currently the most widespread tax-related scam.

To access these multilingual online resources, open the “Language” option in the top right-hand corner of IRS.gov or look for the “Other Languages” section at the bottom of each page of the website.

Related Items:

• El IRS en Español
• 中文 Chinese
• 한국어 Korean
• TiếngViệt Vietnamese
• Pусский Russian

New YouTube Videos, Online Resources Help Taxpayers Abroad

From the IRS Newswire, 06/04/2015

With the June 15 filing deadline for Americans abroad fast approaching, the Internal Revenue Service is launching three new online videos and expanding other online resources designed to help taxpayers, especially those living abroad, meet their U.S. tax obligations.

By law, Americans living abroad, as well as many non-U.S. citizens, must file a U.S. income tax return. In addition, key tax benefits, such as the foreign earned income exclusion, are only available to those who file a U.S. return. These online resources are designed to help affected taxpayers understand how these rules apply to them.

Three new videos are now available on the IRS YouTube page, and several more of interest to taxpayers abroad will be released in coming weeks. Now available are:

• International Taxpayers--Filing Requirements. Learn about the requirements for filing an individual income tax return including income limits while living abroad.
• International Taxpayers--Foreign Earned Income Exclusion. Find out who is eligible, what income qualifies and how to claim the exclusion.
• International Taxpayers--Individual Taxpayer Identification Number (ITIN). This video helps non-U.S. citizens determine if they need an IRS-issued tax reporting number, known as an ITIN, and how to apply for one.

Upcoming videos will deal with the foreign tax credit, filing status for a U.S. taxpayer married to a foreign spouse and an introduction to the IRS web site for international taxpayers.

The IRS has also added two new international tax topics to Tax Trails, the agency’s interactive online tool that helps taxpayers get answers to their general tax questions.

The new topics are:

• Am I Required to File a U.S. Individual Income Tax Return (for U.S. Citizens/Resident Aliens Living Abroad and Nonresident Aliens)?
• Filing Status of a U.S. Citizen or Resident Alien Married to a Nonresident Alien.

The InternationalTaxpayers page on IRS.gov is packed with information designed to help taxpayers living abroad, resident aliens, nonresident aliens, residents of U.S. territories and foreign students. Among other things, the website features a directory of overseas tax preparers.

In addition, the IRS uses a variety of social media tools to share the latest tax information with interested taxpayers both in the United States and around the world. These include the IRS2Go phone application, YouTube, Tumblr and Twitter. A listing of IRS social media tools is available on IRS.gov.

To protect taxpayer privacy, the IRS only uses social media tools to share public information, not to answer personal tax or account questions. It advises taxpayers to never post confidential information, like a Social Security number, on social media sites.

Reminder

Federal law requires U.S. citizens and resident aliens to report any worldwide income, including income from foreign trusts and foreign bank and securities accounts. In most cases, affected taxpayers need to complete and attach Schedule B to their tax return. Part III of ScheduleB asks about the existence of foreign accounts, such as bank and securities accounts, and usually requires U.S. citizens to report the country in which each account is located.

In addition, certain taxpayers may also have to complete and attach to their return Form8938, Statement of Foreign Financial Assets.  Generally, U.S. citizens, resident aliens and certain non-resident aliens must report specified foreign financial assets on this form if the aggregate value of those assets exceeds certain thresholds. See the instructions for Form 8938.

Under the Foreign Account Tax Compliance Act (FATCA) certain U.S. taxpayers holding financial assets outside the United States must report those assets to the IRS on Form 8938. Reporting thresholds vary based on whether a taxpayer files a joint income tax return or lives abroad. See Form 8938 instructions for more.  

Don’t be Fooled, Phone Scams Continue to be Serious Threat Nationwide

From The IRS Newswire, 03/31/2015

WASHINGTON — As April 1st approaches, the IRS warns taxpayers not to be fooled by the tricks scammers use to take advantage of those they target. Scammers use fake names, provide bogus IRS badge numbers and alter caller ID numbers to make it look like the IRS is calling.

With the final two weeks of the filing season about to begin and millions preparing their returns, taxpayers should be alert.

"This is no April Fool's joke. Everyone should be on the lookout for threatening calls from people faking IRS phone numbers and demands for immediate payment," IRS Commissioner John Koskinen said. "These are scams. I urge taxpayers to stay vigilant and remain aware of the constantly changing tactics used by these criminals.”

As the filing season nears its end, there has been a surge of phone scams where scam artists threaten police arrest, deportation, license revocation and other threats.

They often leave “urgent” callback requests and sometimes prey on the most vulnerable people, such as the elderly, newly arrived immigrants and those whose first language is not English. Scammers have been known to impersonate agents from IRS Criminal Investigation as well.

Here are five things the scammers often do but the IRS will not do.

The IRS will not:

• Call to demand immediate payment, nor will the agency call about taxes owed without first having mailed you a bill.
• Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe.
• Require you to use a specific payment method for your taxes, such as a prepaid debit card.
• Ask for credit or debit card numbers over the phone.
• Threaten to bring in local police or other law-enforcement groups to have you arrested for not paying.

If you get a phone call from someone claiming to be from the IRS and asking for money, here’s what you should do:

• If you know you owe taxes or think you might owe, call the IRS at 1-800-829-1040. The IRS workers can help you with a payment issue.
• If you know you don’t owe taxes or have no reason to believe that you do, report the incident to the Treasury Inspector General for Tax Administration (TIGTA) at 1-800-366-4484 or report it online at the IRS Impersonation Scam Reporting Page.
• If you’ve been targeted by this scam, also contact the Federal Trade Commission and use their FTC Complaint Assistant at FTC.gov. If the complaint involves someone impersonating the IRS, include the words “IRS Telephone Scam” in the notes.

Remember, too, the IRS does not use email, text messages or any social media to discuss your personal tax issue involving bills or refunds. For more information on reporting tax scams, go to IRS.gov and type “scam” in the search box.

Additional information about tax scams is available on IRS social media sites, including YouTube and Tumblr, where people can search “scam” to find the related posts.

Tax Season Brings Out Scammers, Con Artists Looking For An Easy Score

From wabe.org, 02/11/2015

Now that it’s tax season, the number of attempts by scam artists to steal a taxpayer’s identity, or con people into paying money that they don’t owe, has increased dramatically.  

Recently, Dottie Callina ─ manager of communications with the Better Business Bureau serving metro Atlanta, Athens and northeast Georgia ─ talked with WABE's Steve Goss about how to protect yourself from a tax season scam. 

"The IRS will never call you about taxes that you owe," Callina said. "They will never demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe. They will require you to use a specific payment method for your taxes. They will never ask you for a credit or debit card over the phone, and they will never threaten to bring in local police or other law enforcement groups to have you arrested."  

If you receive any suspicious telephone calls, emails or letters, call the IRS at 1-800-829-1040 or visit irs.gov for help. 

See the full story and listed to a conversation with the Better Business Bureau's Dottie Callina here - http://wabe.org/post/tax-season-brings-out-scammers-con-artists-looking-easy-score. 

IRS "Taxpayer Bill of Rights" Now Available in 6 Languages

From the IRS Newswire, 08/12/2014

WASHINGTON ― The Internal Revenue Service announced today that its cornerstone "Taxpayer Bill of Rights“ document is now available in six languages.

Newly-revised versions of Publication 1, "Your Rights as a Taxpayer,” are now posted on IRS.gov in English, Spanish, Chinese, Korean, Russian and Vietnamese. By making this important publication available in multiple languages, the IRS hopes to increase the number of Americans who know and understand their rights under the tax law.

The Taxpayer Bill of Rights takes the multiple existing rights embedded in the tax code and groups them into 10 broad categories, making them easier to find and understand.

“We believe that these rights are critically important for people to know and understand, and translating them into additional languages helps us reach even more taxpayers,” IRS Commissioner John Koskinen said. “We encourage people to take a moment to read the Bill of Rights.”

The Taxpayer Bill of Rights contains 10 provisions. They are:

1. The Right to Be Informed

2. The Right to Quality Service

3. The Right to Pay No More than the Correct Amount of Tax

4. The Right to Challenge the IRS’s Position and Be Heard

5. The Right to Appeal an IRS Decision in an Independent Forum

6. The Right to Finality

7. The Right to Privacy

8. The Right to Confidentiality

9. The Right to Retain Representation

10. The Right to a Fair and Just Tax System

Anxious to Start Your 2013 Tax Return?

As we enter the tax filing period for 2013, you may be anxious to complete your return and to get your refund.  We at OHR and OIE understand this, and want to help!  

This year the IRS has delayed all tax filings and will not accept returns earlier than January 31, 2014.  Please keep in mind that all non-US citizens (who are not US green card holders) should first use the GLACIER tax compliance system to determine if you are a resident or nonresident alien for tax purposes.  If GLACIER determines that you are a nonresident for tax purposes, we can help!  As a nonresident for tax purposes you will be able to complete your federal tax return using GLACIER Tax Prep (GTP) which will be available for use via your current GLACIER account no later than February 17, 2014.  

Workshops assisting with the Georgia state tax forms will be held February 24 through April 14 Dates, times, and locations can be found here.

Also, please be reminded that both resident and nonresident aliens for tax purposes who claimed treaties in 2013, as well as all those students who are nonresident aliens for tax purposes receiving scholarships above and beyond tuition, will need a form 1042-S to complete their tax return.  1042-S forms will also be released no later than February 17, 2014.  Recipients will receive an email from GLACIER when the form is ready for use.

See the International Student and Scholar Tax FAQs for additional information

Questions?  Email nra.ask@ohr.gatech.edu

What to Expect During the Federal Shutdown: Information for Foreign Nationals

The U.S. Congress was not able to come to consensus on the federal budget by the October 1 deadline. As a result, many U.S. government operations – including some key immigration functions – will be suspended until an agreement is reached.

The duration of the shutdown cannot be predicted. It could last for several days or weeks, though Congress could pass a temporary measure to fund the government while debate over the budget continues.

The following are some frequently asked questions about the impact of the shutdown on foreign nationals. If your immigration case is delayed by the shutdown, keep in close contact with your employing department and your designated Faculty & Researcher Immigration Specialist in Global Human Resources. We will be closely monitoring the government’s immigration operations and will provide updates on this blog. 

1. I need to apply for a nonimmigrant visa. Will the U.S. consulate be able to process my application and issue my visa during the shutdown? 

Yes, but you should file quickly and be prepared for possible delays.

U.S. consulates plan to remain open and process visa applications for as long as the funding the State Department receives from application fees remains available. (Visa operations are partly funded by application fees paid by foreign nationals and partly by U.S. government appropriations. Only the government appropriations funding is affected by the shutdown.)

But it is important to file as soon as possible in the event the shutdown lasts for more than a few days. If funds from application fees are depleted, the State Department could suspend visa processing or limit it to urgent medical or humanitarian cases only. 

2. My nonimmigrant visa application is pending and I have a visa appointment in the very near future. Will the U.S. consulate be able to process my visa? What if my case is undergoing a security clearance?

As noted above, U.S. consulates will be open during the shutdown and will continue to process visas and conduct visa interviews as long as State Department funds remain available. However, if the shutdown lasts for more than a few days and funding is depleted, your case could be delayed.

If your application is subject to a security clearance, you could experience a delay during the shutdown. Many government agencies take part in security clearances in addition to the State Department, and some may be affected in the event of a shutdown. 

3. Will Canadian nationals be able to submit applications for TN or L-1 status at the U.S. border or port of entry? 

U.S. Customs and Border Protection, which adjudicates border applications for TN and L-1 status, has not yet announced whether they will continue to process these applications, but this function may not be affected by the shutdown. If you are a Canadian national planning to apply at the border while the shutdown is ongoing, please contact your designated Faculty & Researcher Immigration Specialist in Global Human Resources to coordinate your application.

4. My department is planning to file a PERM application on my behalf. Will the Labor Department process my application during the shutdown? 

No. All of DOL’s immigration-related functions, including labor certification operations, will be suspended during the shutdown. The online system used to file PERM applications will not be able to accept new cases. PERM applications already on file with DOL will not be processed. Processing will resume only after the shutdown is over. 

5. My department is filing an immigration petition with USCIS on my behalf. Will the USCIS be able to process it during the shutdown?

Yes, USCIS will continue to process applications and petitions for immigration benefits during the shutdown. This includes petitions for immigrant and nonimmigrant workers and applications for adjustment of status. However, processing delays are possible if adjudication of your case is dependent on support from government functions that are suspended during the shutdown – for example, if your case requires a certification from the Department of Labor or a security clearance from an agency that is affected by the shutdown. 

6. I am an H-1B employee and my status is expiring soon. My department is planning to file for an extension for me. Will my extension be affected by the shutdown? 

Possibly. Though USCIS will continue to process extensions during the shutdown, your case could be delayed by the suspension of labor condition application (LCA) processing at the Department of Labor. A valid LCA certified by DOL is an essential part of any extension of H-1B nonimmigrant status, but DOL’s LCA operations will be suspended during the shutdown.

If we do not have a valid, certified LCA in place for your position and work location, your extension could be delayed. 

7. I am a new nonimmigrant employee and I need to apply for a U.S. Social Security number. Will I be able to apply during the shutdown?

No. Though the Social Security Administration will remain open during the shutdown, it will not be accepting or processing applications for Social Security numbers (SSNs) or replacement Social Security cards.

You do not need an SSN to start work, but lack of an SSN could affect your ability to obtain a U.S. driver’s license, open a bank account and obtain other benefits. 

8. Will a nonimmigrant be able to apply for a driver’s license or non-driver ID during the shutdown? What about renewing a license or state ID?

Even though driver’s licenses and non-driver IDs are the responsibility of state governments, your application for a new or renewed license could be delayed during the shutdown. Your state Department of Motor Vehicles must use a federal database to verify your immigration status before it will issue you a license or ID card. This database, known as SAVE, could be suspended.  

9. How quickly will immigration operations return to normal after the shutdown is over?

Once the budget impasse is resolved, you should expect some processing delays while affected agencies get back up to speed. Backlogs are likely to build up during the shutdown and it could take several days or weeks for agencies to work through them.

Source: Fragomen.com

PHISHING SCAM: Fake IRS E-mails

The phishing scams have already started.  Each year, millions of people receive an email “from the IRS” that looks very real and asks the person to click on a link in order to get their refund electronically deposited into their bank account.  The person is asked to enter his or her SSN/ITIN and bank information and told that the refund will be there in about 24 hours. 

Please be aware of the following:

FIRST – the IRS DOES NOT and CANNOT send emails to taxpayers.

SECOND – if the person clicks on the link, a virus will likely be launched onto their computer. IF they actually enter the information, it is likely that money will be deducted from their bank account within a matter of hours.