Personal Finance

US Tax ID number (ITIN): $50 cost? And other questions.

  • Last Updated:
  • Mar 15th, 2013 12:16 am
Sr. Member
Jun 27, 2012
913 posts
100 upvotes
Winnipeg, MB

US Tax ID number (ITIN): $50 cost? And other questions.

I'm running into some problems doing business in the US and it looks like a US tax number is what I need. Perhaps somebody here could enlighten us on a few things:
Is it possible to get it for less than $50?
Is it necessary to fill out any US tax forms or is it all taken care of when I fill out my Canadian tax form each year?
Is it very invasive in terms of your privacy?
2 replies
Deal Fanatic
User avatar
Mar 20, 2009
8862 posts
2693 upvotes
Vancouver
You can get your ITIN directly from the IRS (free? or maybe very small processing fee), although as a foreigner you have to fill in forms and mail them and wait rather than applying and receiving your number online.

The down side is that you are then expected to file a U.S. tax return with the IRS every year. It shouldn't cost you any more in taxes - since the U.S. and Canada have a tax treaty, you only have to pay income tax in one country or the other, not both. The problem is the administrative overhead and cost. If you don't file the U.S. return, your ITIN will eventually be suspended.

If you are a Canadian and you provide your goods or services from Canada, you can receive payments from the U.S. without any withholding tax and without having an ITIN. You just need to provide the W8BEN form (statement of foreign beneficial ownership) instead of the W9 form. Sometimes it takes a bit of argument to convince U.S. organizations of this, but it is legal.
Sr. Member
Jun 27, 2012
913 posts
100 upvotes
Winnipeg, MB
Great info on the W8BEN form.
I've heard that Canadians that sell on Amazon are subjected to an automatic 30% withholding tax. Would the W8BEN work in that situation I wonder? I'd really have to weigh the benefits if it means I have to fill out that dreaded form every year for such a measly amount of income. Canadian T1 forms are enough of an annual hassle.

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