Purchasing U.S. Tax Lien Certificates from Abroad

Buying tax liens or tax deeds in the U.S. normally requires a social security number or a federal tax I.D. number. One way for nonresidents to work around this is to start a small business, such as a limited liability company (LLC), and receive a federal tax I.D. number.

Another method is to obtain an Individual Taxpayer Identification Number (ITIN). According to the U.S. Internal Revenue Service, federal law requires individuals with U.S. income, regardless of immigration status, to pay U.S. taxes. The ITIN, a nine-digit number that begins with the number 9, was created for use on tax returns for those taxpayers who do not qualify for a social security number. The IRS has issued 7 million ITINs since 1996.

For more information, visit http://www.irs.gov/newsroom/article/0,,id=112728,00.html.

Any nonresident or U.S. resident alien who is required to file taxes or who can be claimed as an exemption or dependent on a tax return, and who does not qualify for a social security number, can apply for an ITIN. See Publication 501, “Exemptions, Standard Deduction and Filing Information for Exemption Tests” and Publication 519, “U.S. Tax Guide for Aliens” to determine resident status.

You do not need an ITIN if:

• you are a U.S. citizen,
• you were born in the U.S. and do not have diplomatic immunity,
• you have entered the U.S. on a work VISA, or
• you are entitled to a federally funded benefit (stipend/fellowship/grant).

You are eligible for an ITIN if:

• you have entered the U.S. on a non-work VISA,
• you were born in the U.S. and have diplomatic immunity,
• you have applied for and were denied a social security number, or
• you are an undocumented alien.

You can obtain ITIN application forms, W-7/W-7SP, through IRS offices worldwide:

• 1-800-TAX-FORM (1-800-829-3676)
• http://www.irs.gov/
• Tax Fax Service at 1-703-368-9694
• IRS kiosks.

Submit your ITIN forms and supporting documentation to:

• IRS Taxpayer Assistance Centers (TACS),
• certain U.S. consular offices abroad,
• a Certified Acceptance Agent, or
• mail to:

PSPC ITIN Unit
P.O. Box 447
Bensalem, PA 19020
DP N-280

For ITIN Frequently Asked Questions, visit:

http://www.irs.gov/individuals/article/0,,id=96287,00.html.

Download Form W-7, Application for IRS ITIN, at http://www.irs.gov/pub/irs-pdf/fw7.pdf.

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