Certifying Acceptance Agents
Certifying Acceptance Agents
Certifying Acceptance Agents , also referred to as a CAA, is an individual or an entity who is authorized by the Internal Revenue Service (IRS) to assist persons including foreign individuals who do not qualify for an SSN (Social Security Number) but still need a taxpayer Identification Number to file form 1040 as well as other tax schedules.
A certifying Acceptance Agent assists in the application process by reviewing the documents, authenticating the identity and forwarding the forms to IRS.
Four important steps that all new and renewing CAA applicants should take prior to their W-7 Form
- Complete form 13551, an application to participate in the internal revenue service acceptance program.
- Complete the Acceptance Agent training, print the form, sign and submit to IRS.
- Complete forensic training and submit the certificate to IRS upon completion
- Attach the certification form for every authorized representative
Applications without all the required certification forms are not processed and all the certifying Acceptance Agents should submit at least W-7 applications every year to remain in the program. IRS also conducts a tax compliance check on each applicant after receiving the applications.
Additional information on CAA requirements
To ensure that the agents have the necessary tools to perform their work, they are required to complete a training session available online which equips them with essential skills for determining the authenticity of the identification documents. An agent should attach the completion certificate to the form 13551.
· Compliance reviews
IRS then conducts compliance reviews including correspondence and physical reviews. Certifying acceptance agent should cooperate with IRS compliance checks failure to which results to the termination from the program.
· Quality standards
All certifying acceptance agents should comply with the new quality standards set by IRS. The standards mainly focus on the quality of every agents W-7 submissions and their adherence to the set terms and conditions.
Individual Tax Identification Number (ITIN)
This is a tax processing number that is issued by IRS to ensure that everyone including the unauthorized immigrants pay their taxes even if they do not have a SSN (social security number). It is 9 digit number that begins with number 9 and has 8 or 7 in the fourth digit.
In order to receive an ITIN, an individual should have a valid federal income tax return.
Purposes of ITIN
Individual taxpayer Identification numbers (ITIN) are meant for federal tax reporting only. It does not authorize work in U.S or make one eligible for earned income tax credit or social security benefits. They are only meant to help people comply with tax laws in the U.S and provide a way of processing and accounting for tax returns and payments by those not eligible for SSN.
Other purposes of an ITIN
· Opening an interest bearing bank account
People without social security numbers but have ITIN are allowed to open interest bearing accounts.
· Securing a Driver’s license
A person with an ITIN is allowed to secure a driver’s license, a state identification card or a driver’s permit.
· Provides proof of residency
If an immigrant is required to prove how long he or she has been in the United States, having an ITIN is one way to show proof.