Confirming identity of a foreign national taxpayer

Technical topics regarding tax preparation.
#1
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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.
 

#2
Guya  
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What is the business reason this individual has selected your firm? In which country does the client live?
PS – Greeting from London, England. Grey and rainy ...
 

#3
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Guya wrote:What is the business reason this individual has selected your firm? In which country does the client live?


Referral by a current client.The current client said she is her cousin and lives in France,
 

#4
KoiCPA  
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Some of your questions might provide answers to others.

An ITIN is required to file a return. If the NRA taxpayer doesn't have an ITIN, part of the W7 application process is verifying their identity, which can be done using a variety of documents. A passport is great, but there are a lot of possible options.

Other than that, my advice is to stop worrying about hypothetical client problems. If you want a passport, ask for a passport. If you will accept an alternative, then accept an alternative. If not, thank them for considering you for their tax filing needs and wish them the best of luck in finding a preparer who will not require documents. Nobody's forcing you to work with this potential client.
 


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