I am contacted to prepare a tax return for a foreign national (non-resident). The only tax issue to be reported in the Form 1040-NR tax return is the sale of a property.
Generally, when we prepare the tax return of a new client, we would request a copy of their ID to confirm their identity. But since this is a foreign national, she does not have a US driver's license or any form of state ID. So how should I confirm her identity? Do I have to ask for her passport? What about if she is uncomfortable providing her passport as it is such an important travel document? Should I insist on it?
The closing statement shows Federal tax (Form 8828) and state tax was withheld by the title company in the escrow. If that is the case, does that mean she should have a US tax ID such as an ITIN?
Thank you for the help.