🧾 ITIN + 1040-NR PREPARATION WORKFLOW

(For Nonresident Clients Without an SSN)

🔹 STEP 1 — Confirm the Client Needs an ITIN

Your preparer must verify:

✅ Client is a Nonresident Alien
✅ Has U.S. source income (W-2, 1042-S, 1099, etc.)
❌ Not eligible for an SSN
✅ Required to file Form 1040-NR

➡️ If all are true → ITIN must be requested with Form W-7

🔹 STEP 2 — Prepare Form 1040-NR FIRST

🚨 This is where many offices make mistakes.

The tax return must be completed before Form W-7 because:

• The IRS uses the return to justify the ITIN request

On Form 1040-NR:

• Leave SSN field blank
• Write:
  👉 “ITIN TO BE REQUESTED”

Do NOT use:

• 999-88-9999
• Applied For
• NRA
  These will cause rejection ❌

Complete:

• Filing Status
• Income
• Treaty Benefits (if applicable)
• Signature + Date

🔹 STEP 3 — Prepare Form W-7

✔️ Check Reason:

Most common:

☑️ b — Nonresident alien filing a U.S. federal tax return

OR

☑️ a — Claiming tax treaty benefit

✔️ Name Must Match EXACTLY:

The name on:

• Passport
• Form W-7
• Form 1040-NR

Must be identical — including:

• Hyphens
• Double last names
• Middle names

Mismatch = automatic rejection 🚫

✔️ Foreign Address is REQUIRED

Even if they live in the U.S.

You may include U.S. mailing address, but:

📌 Foreign address must be listed in section 2.

🔹 STEP 4 — Supporting Documentation

Submit:

✅ Original Passport

OR

✅ Certified Copy from Issuing Agency

Not accepted:

❌ Notarized copies
❌ Color scans
❌ Apostilles
❌ Copies certified by a notary

📌 Passport alone is sufficient to prove:

• Identity
• Foreign status

No birth certificate required if passport is submitted.

🔹 STEP 5 — Assemble the ITIN Package

📦 ORDER MATTERS:

Put together in this exact order:

1. Form W-7
2. Original Passport / Certified Copy
3. Form 1040-NR
4. Income Documents
   • W-2
   • 1042-S
   • 1099
5. Treaty Statement (if used)

🔹 STEP 6 — Mail to IRS

Internal Revenue Service
ITIN Operation
P.O. Box 149342
Austin, TX 78714-9342

📌 Send using:

• USPS Certified Mail
  OR
• Private Carrier (FedEx/UPS/DHL)

🔹 STEP 7 — Processing Time

⏱️ ITIN Processing:

• 7–11 weeks normal
• 9–14 weeks peak season (Jan–Apr)

IRS will:

1. Assign ITIN
2. Process 1040-NR
3. Mail CP565 Notice

🚨 TOP 5 REASONS ITIN APPLICATIONS GET REJECTED