7 FAM 500 Appendix A
internal revenue service
(CT:CON-1007; 04-19-2024)
(Office of Origin: CA/OCS)
7 FAM 510 appendix a INTRODUCTION
(CT:CON-1007; 04-19-2024)
a. U.S. citizens and U.S. Permanent Residents are responsible for filing U.S. Federal income tax returns while living abroad. The Internal Revenue Service (IRS) web page includes comprehensive information for international taxpayers, including taxpayers living outside the United States.
(1) This information includes how to file from abroad;
(2) The regulations and procedures taxpayers must follow to file from abroad;
(3) Links to a wide variety of forms and publications to guide taxpayers through each step of the filing process;
(4) Answers to many frequently asked questions for those living abroad regarding taxes; and
(5) In addition, the application for an Individual Taxpayer Identification Number (ITIN) is available on the IRS webpage. (See 7 FAM 552 Appendix A for guidance about notarial services related to ITINs.)
b. Authority: 26 U.S.C. 7803(a)(2)(A) provides that the Commissioner of Internal Revenue shall have such duties and powers as the Secretary of the Treasury may prescribe, including the power to administer, manage, conduct, direct, and supervise the execution and application of the internal revenue laws or related statutes and tax conventions to which the United States is a party.
c. Obligations to pay to U.S. taxes:
(1) Income tax: In general, all citizens of the United States, and all U.S. Permanent Resident individuals wherever resident, are to the income tax imposed by the Internal Revenue Code of the United States whether the income is received from sources within or outside the United States. A person whose U.S. citizenship is restored, after a previous subject finding that it had been lost, immediately becomes subject for U.S. income tax on their worldwide income (See 7 FAM 1243 and 7 FAM 1266). A nonresident non U.S. citizen is subject to the tax imposed by the Internal Revenue Code on income received from sources within the United States, and, under certain conditions, on income received from sources outside the United States;
(2) Estate tax: A Federal estate tax is imposed upon the transfer of the entire taxable estate of a U.S. citizen decedent wherever resident at the time of death, and upon certain U.S. property held by nonresident non U.S. citizens. Internal Revenue Form 706 United States Estate Tax Return (Form IRS-706), for the year in which the decedent died, will supply return requirements and other information for estates of U.S. citizens or noncitizens domiciled in the United States. Form 706NA United States Estate Tax Return and Instructions should be used for estates of nonresident non U.S. citizens; and
(3) Gift tax: The gift tax applies to all transfers by gifts within a calendar year to any donee of property valued in excess of the “annual exclusion” for each donee applicable unless the gift is of a future interest in property. The annual exclusion for 2014, 2015, and 2016 is $14,000. Transfers of any property anywhere in the world are subject to the gift tax when the donor is a U.S. citizen or noncitizen domiciled in the United States. Transfers of U.S. tangible property and U.S. realty are subject to gift tax when the donor is a nonresident non U.S. citizens. Some deductions may be applicable. Internal Revenue Form 709 Gift Tax Return (Form IRS-709) and instructions may be reviewed for additional information. The first $1 million of taxable gifts by a donor who is a U.S. citizen or noncitizen domiciled in the United States will not generate any actual gift tax being payable. There is an exemption of $1 million that applies first to lifetime gifts and then to property held at death by a U.S. citizen or noncitizen domiciled in the United States. Nonresident non U.S. citizen donors do not qualify for the $1 million lifetime exemption.
7 FAM 520 APPENDIX A ROLE OF THE OVERSEAS CITIZENS SERVICES (CA/OCS)
(CT:CON-906; 04-22-2021)
a. IRS related law, regulation, policy, or treaty implementation, for which the Office of Legal Advisor for Consular Affairs (L/CA) and Directorate of Overseas Citizens Services coordinates with the Bureau of Economic and Business Affairs (EB) in liaison to Treasury and IRS.
b. The Program Management Office (CA/OCS/MSU), Directorate of Overseas Citizens Services in the Bureau of Consular Affairs is the Department’s liaison with the Internal Revenue Service, Federal benefits-paying agencies, and consular sections at U.S. embassies and consulates abroad.
c. CA/OCS/MSU provides guidance, disseminates information, and implements new procedures regarding:
(1) Questions concerning the IRS tax assistance program;
(2) Questions concerning Individual Tax Payer Identification Numbers (ITINs);
(3) Questions concerning distribution of IRS refunds. If the country receives their monthly check shipments via IPA, the IRS refund checks are also mailed via IPA directly to the recipients address as shown on the check; and;
(4) IRS forms and publications: Refer individuals to the IRS Income Tax Forms webpage. Encourage individuals to download and print forms and publications from IRS.gov rather than request them by mail.
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See … IRS Order Forms and Publications |
7 FAM 530 Appendix A Notarial Services
(CT:CON-962; 02-02-2023)
a. 22 CFR 92.75 authorizes Foreign Service officers to perform notarial services in connection with tax returns.
b. 22 CFR 92.75 states specifically that officers should not give advice on the preparation of tax returns.
c. No attempt is to be made by Foreign Service personnel to answer specific tax questions, e.g., regarding deductions or exemptions or the requirement for certain forms.
7 FAM 540 Appendix A IRS Offers Tax Assistance
(CT:CON-619; 01-15-2016)
a. All IRS overseas operations that provided taxpayer assistance have ceased effective November 20, 2015 and the Agency is no longer providing any walk-in assistance to U.S. taxpayers abroad. The IRS provides tax assistance to individuals and businesses located outside the United States via telephone, fax, or mail. Assistance is provided to U.S. citizens, as well as non-U.S. citizens, and guidance is offered for current, as well as past, tax years. Contact information is found at Contact my Local Office Internationally.
b. Taxpayers with internet access are encouraged to research the IRS website. The IRS continually updates and improves this site, making it easier to navigate and research tax-related topics. For topics typically of interest to overseas individuals, refer to IRS International Taxpayers site.
c. Taxpayers who received a notice from the IRS or have questions on their specific account may call the IRS International Taxpayer Service Call Center at 267-941-1000 (not a toll-free number). This International Call Center operates from 6am to 11pm (EST).
7 FAM 550 Appendix A Individual Taxpayer Identification Number (ITIN)
7 FAM 551 Appendix A Overview
(CT:CON-1007; 04-19-2024)
a. The Foreign Service officer should review the general ITIN information. ITIN is a unique taxpayer identification number, similar to a Social Security Number, issued to a resident or nonresident non U.S. citizen who has a U.S. tax filing requirement, but who cannot obtain a Social Security Number. The ITIN, a nine-digit number beginning with the number 9, is for tax use only and should be entered whenever an SSN is required on a tax return. It does not entitle an individual to Social Security benefits or change one’s employment or immigration status under U.S. law. An ITIN will expire if not used on a Federal income tax return for any year during a period of 5 consecutive years.
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See … IRS website on obtaining an ITIN from abroad. |
b. ITINs are issued to nonresident or resident non U.S. citizens who do not have and are not eligible to get a Social Security Number. Examples of individuals who need ITINs include:
(1) A nonresident non U.S. citizen required to file a U.S. tax return;
(2) A U.S. resident non U.S. citizen (based on days present in the United States) filing a U.S. tax return;
(3) A dependent or spouse of a U.S. citizen/resident non U.S. citizen; and
(4) A dependent or spouse of a nonresident non U.S. citizen visa holder.
7 FAM 552 Appendix A How to Apply for an ITIN
(CT:CON-1007; 04-19-2024)
There are three parts to a complete application for an ITIN:
(1) IRS Form W-7: This is the Application for IRS Individual Taxpayer Identification Number. It can be downloaded from the Internal Revenue web page. It must be signed by the applicant and dated.
(2) Proof of Identity and Foreign Status: If the applicant submits a passport, they do not need to submit any other documents. Otherwise, the applicant must submit at least two of the documents listed in the chart in the W-7 instructions. The documents must be current, verify the applicant's identity (that is, contain their name), and support the applicant's claim of foreign status. At least one document must contain a photograph of the applicant, but a photograph is not required if documents are submitted for a dependent under age 14 (under age 18 if a student). The following is a full list of acceptable ID documents:
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Accepted ID Documents* |
Can be used to establish: |
|
|
Foreign status |
Identity |
|
|
Passport (the only stand-alone document)
|
x |
x |
|
U.S. Citizenship and Immigration Services (USCIS) photo identification |
x |
x |
|
Visa issued by U.S. Department of State |
x |
x |
|
U.S. driver's license |
|
x |
|
U.S. military identification card |
|
x |
|
Foreign driver's license |
|
x |
|
Foreign military identification card |
x |
x |
|
National identification card (must be current and contain name, photograph, address, date of birth, and expiration date) |
x |
x |
|
U.S. state identification card |
|
x |
|
Foreign voter's registration card |
x |
x |
|
Civil birth certificate |
x* |
x |
|
Medical records (valid only for dependents under age 6) |
x* |
x |
|
School records (valid only for dependents under age 14 (under age 18 if a student)) |
x* |
x |
* Can be used to establish foreign status only if they are foreign documents.
(3) The applicant must provide either the original ID document(s) or a copy that has been certified by the issuing agency or a U.S. embassy or consulate.
(4) Documentation Supporting the Need for an ITIN
(a) A completed federal tax return with attached proof of payment(s). Proof includes, but is not limited to, income statements, such as a Form W-2, 1099, or 1042-S. Types of possible tax returns include 1040 (spouse of US citizen, permanent resident) or 1040NR (non-resident non U.S. citizen with US income); or
(b) If no tax return can be filed with the application, there is a list of enumerated exceptions to filing a return. Each exception requires specific documentary evidence of why an ITIN is needed. Please read the relevant information in the Exceptions Tables, beginning on page 6 of the Instructions for Form W-7, and submit the documentation that is required for the exception that your application falls under.
(5) Where the applicant should send their ITIN Application:
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Internal Revenue Service |
7 FAM 553 Appendix A ITIN Notarization Requirement
(CT:CON-619; 01-15-2016)
a. Applicants for an Individual Taxpayer Identification Number (ITIN) may request that a consular officer authenticate or certify their identity documents (including a passport, national identity card or birth certificate) as true copies, as appropriate. The IRS will accept certification of documents by U.S. consular officers which should be affixed on the reverse side (back) of the copy.
b. As an alternative to consular notarial services for ITINs, IRS recommends the use of its Acceptance Agent Program Abroad. Consular officers may direct inquirers to these Acceptance Agents/public accounting firms. A list of countries with designated agents and their contact information can be found at the IRS Acceptance Agent Program page. See 7 FAM 550.4.
c. The IRS has made new procedural changes to the ITIN application requirements which are listed on its ITIN Updated Procedures Frequently asked Questions. Certain categories of applicants are exempt from these new requirements as explained on the IRS webpage. ITIN applications or copies of supporting documentation executed before a foreign notary and Apostilled under the Hague Convention Abolishing the Requirement of Legalization of Foreign Public Documents will not be accepted.
7 FAM 554 Appendix A The IRS Acceptance Agent Program Abroad
(CT:CON-619; 01-15-2016)
There are public accounting firms overseas in certain countries, which are acceptance agents for ITIN numbers. You will find a list of countries with designated agents and the names and addresses at the IRS Acceptance Agent Program page. In these countries, consular officers may direct inquirers to these agents rather than providing notarial services related to ITINs at post.
7 FAM 555 Appendix A ITINS and Consular Fees
(CT:CON-962; 02-02-2023)
The fee waivers in items 45(a) and (b) on the Schedule of Fees, 22 CFR 22.1, are not applicable to filing tax returns or applying for an ITIN because the ITIN application is not a document presented by a claimant, beneficiary or witness in connection with obtaining a federal or state benefit.
All posts must charge the appropriate notarial fee when performing notarial services in connection with Form W-7 ITIN applications. Generally, the notarial services involve authenticating copies of an individual's identity documents or certifying that a document is a true copy.
7 FAM 560 appendix a CONSULAR AUTHORITIES
(CT:CON-613; 11-13-2015)
Legal authority for consular services regarding U.S. Treasury and IRS matters abroad is derived from:
(1) Treaty authority:
(a) Vienna Convention on Consular Relations (VCCR), Article 5(e) “Helping and assisting nationals, both individuals and bodies corporate, of the sending State”; Article 5(f) “performing certain functions of an administrative nature, provided there is nothing contrary thereto in the laws and regulations of the receiving State” and Article 5(m) "performing any other functions entrusted to a consular post by the sending State which are not prohibited by the laws and regulations of the receiving State or to which no objection is taken by the receiving State or which are referred to in the international agreements in force between the sending State and the receiving State”;
(b) Comparable provisions in bilateral consular conventions; and
(c) (See Treaties in Force and the treaties page on CAWeb); and
(2) Statutory authority:
(a) 22 U.S.C. 3904(3) Functions of Service;
(b) 26 U.S.C. 7803(a)(2) Duties of the Commissioner of Internal Revenue;
(c) 31 U.S.C. 3321 Paying Checks and Drafts; and
(d) 31 U.S.C. 306 Fiscal Service.
7 FAM 570 appendix A ROLE of the Consular Officer Regarding IRS Matters Abroad
(CT:CON-962; 02-02-2023)
a. Posts should stock IRS income tax forms for individuals in their consular district during tax filing season or refer individuals to the IRS Forms and Publications web page. https://www.irs.gov/Forms-&-Pubs.
b. The International Program provides Federal tax forms and publications to United States embassies, consulates, and various military legal assistance offices worldwide. Annually, the International Program emails participants Form 14004, International Program Order Form.
c. Post provides notarial services in connection with tax returns.
d. Regarding refund checks deliveries, if the country receives their monthly check shipments via IPA, the IRS refund checks are also mailed via IPA directly to the recipients address as shown on the check. If IPA isn’t available, the refund checks will be sent to post.
e. When post receives the refund checks, post should check contact information on Smart Traveler Enrollment Program (STEP) or any other internal systems and contact the taxpayers so the refund checks can be picked up or sent by local mail. Mailing and physical addresses are the only contact information IRS has in their system which comes from Tax Returns or the Change of Address forms submitted to them. On these forms, most taxpayers living abroad don’t provide IRS with their phone numbers or email addresses. In addition, the refund checks are printed (by automated system) by the Treasury Department that also prints checks for all other U.S. Government agencies. At this time, a systemic change in the Treasury check printing system is extremely difficult.
f. For the checks that are non-deliverable, please return them to the IRS to:
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Internal Revenue Service ARKA Monterey Park 1973 N Rulon White Blvd Ogden, UT 84404 |
g. In addition, please have the taxpayers contact the IRS International Taxpayer Service Call Center at the phone number listed below. The staffs who answer these calls will be able to provide the refund status as well as reissue checks that are lost or stolen.
h. IRS International Taxpayer Service Call Center– 267-941-1000 (not a toll-free number), operates from 6AM-11PM (Eastern Time).
7 FAM 580 appendix a Economic and Business Affairs - Treasury and IRS Programs
(CT:CON-962; 02-02-2023)
The Directorate of Overseas Citizens Services and the Office of the Assistant Legal Advisor for Consular Affairs (L/CA) coordinates with the Bureau of Economic and Business Affairs (EB) regarding questions concerning law and policy programs of the U.S. Department of the Treasury and IRS including, but not limited to:
(1) Economic and trade sanctions: Office of Foreign Assets Control (OFAC). OFAC administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals. OFAC also imposes controls on transactions and freezes foreign assets under U.S. jurisdiction. See also 7 FAM 614; and
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See … OFAC Resource Center Sanctions and Programs |
(2) Foreign Account Tax Compliance Act (FATCA): The Foreign Account Tax Compliance Act (FATCA) provisions of the Hiring Incentives to Restore Employment Act of 2010 (HIRE Act) were enacted on March 18, 2010, in order to address concerns with offshore tax evasion. FATCA focuses on reporting. U.S. taxpayers may be required to report about certain foreign financial accounts and offshore assets. Foreign financial institutions (FFI) may be required to enter into an agreement with the Internal Revenue Service (IRS) to report information about certain accounts held by U.S. persons or foreign entities owned by U.S. persons. An FFI that does not enter into an agreement with the IRS will be subject to a 30 percent withholding tax on certain payments, including U.S. source interest and dividends, and gross proceeds from sales of U.S. securities.
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See … Bureau of Consular Affairs FATCA material Department of the Treasury FATCA material IRS FATCA material Bureau of Economic and Business Affairs FACTA material |
7 FAM 590 Appendix A privacy act considerations
(CT:CON-962; 02-02-2023)
a. Information contained in a name-retrievable system of records concerning matters under the jurisdiction of the U.S. Treasury, e.g., personal tax information, may not be disclosed except:
(1) As expressly authorized by the Treasury Department;
(2) By written authorization by the individual who is the subject of the record; and
(3)In accordance with conditions of disclosure under the Privacy Act. 7 FAM 060 provides general guidance regarding the Privacy Act.
b. Any unauthorized disclosure is subject to criminal penalties pursuant to 5 U.S.C. 552a (Privacy Act, as amended) and 26 U.S.C. 6103 Confidentiality and Disclosure of Returns or Return Information.