U.S. Embassy Santo Domingo Tax Information

IRS Change to the Individual Taxpayer Identification Number (ITIN) Program

The Internal Revenue Service (IRS) is implementing significant changes to the Individual Taxpayer Identification Number (ITIN) program under the PATH Act of 2015.  The new law means that any ITIN not used on a federal tax return at least once in the last three years will no longer be valid as of January 1, 2017 for use on a tax return unless the taxpayer renews the ITIN.

In addition, all ITINs issued prior to 2013 will begin to expire this year and taxpayers will need to renew them.  The first pre-2013 ITINs that will expire are those with middle digits of 78 and 79 (Example:  9XX-78-XXXX).  The renewal period for these ITINs began October 1, 2016.  The IRS began to mail letters to this group of taxpayers in August to inform them of the need to renew their ITINs in order to file a tax return, and explain the renewal steps.  The IRS will announce the schedule for expiration and renewal of ITINs that do not have middle digits of 78 and 79 at a future date.

If taxpayers have an expired ITIN, not renewed before filing a tax return next year, they might face a refund delay and be ineligible for certain tax credits, such as the Child Tax Credit and the American Opportunity Tax Credit, until they renew the ITIN.  More information is available on the ITIN page at IRS.gov.

Important Information: New IRS Form for Overseas Taxpayers

The Form 8938 (Statement of Specified Foreign Financial Assets) should be filed by taxpayers with specific types and amounts of foreign financial assets or foreign accounts.  It is important for taxpayers to determine whether they are subject to this requirement because the law imposes significant penalties for failing to comply.

Form 8938, the instructions, regulations implementing this new foreign asset report, and other information to help taxpayers determine if they are required to file Form 8938 is available on the web at the Foreign Account Tax Compliance Act (FATCA) webpage.

All U.S. citizens must report their worldwide income on their Federal income tax returns.  Living or earning income outside the United States does not relieve a U.S. citizen of the responsibility for filing tax returns. However, U.S. citizens living and/or working abroad may be entitled to various deductions, exclusions, and credits.

The Consular Section used to receive a comprehensive selection of federal income tax forms to be made available to all interested taxpayers.  However, those forms are not being sent in a printed form anymore, but are instead available to be downloaded from the Internal Revenue Service’s website at www.irs.gov.  State tax forms are not available either, but may also be downloaded from the Internet at: http://www.taxadmin.org/fta/link/forms.html.

Consular Section employees are not tax experts and therefore cannot advise citizens on such matters, and there is no Internal Revenue Service representative assigned to Santo Domingo.

What The IRS Wants U.S. Citizens Living Abroad To Know

• As a U.S. citizen you are taxed on your worldwide income. You must file annual U.S. income tax returns and report income from all sources, both inside and outside the United States.  (Minimum income levels apply as determined by filing status.)
• In many instances, you may be able to exclude up to $78,000 for your foreign earned income (2001); however, you must file a return to claim the exclusion. You may be entitled to a credit for taxes paid to a foreign government, but you must also file a U.S. income tax return to claim this credit.
• You must also file if you are self-employed with a net profit of USD $400 or more. Net profit from self-employment over USD $400 is subject to Social Security and Medicare taxes. The foreign earned income exclusion and other credits or deductions cannot be used to offset self-employment tax.

If you should have filed tax returns in recent years but failed to do so, the IRS can help to bring your accounts up to date. If you owe tax and are unable to pay in full, the IRS may offer you installment payment arrangements, or may consider offers-in-compromise to satisfy a tax liability.

Taxpayers who come forward, make a true voluntary disclosure, and file an accurate return will not be prosecuted.

Internal Revenue Service

The Internal Revenue Service website has an abundance of on-line tax information including tax forms, tax help and tax CD-ROM products. Taxpayers requiring IRS assistance should contact the Philadelphia Service Center by phone at 1-215-516-2000 or by fax at 1-215-516-2555.

By mail:

Internal Revenue Service
P.O. Box 920
Bensalem, PA  19020

Hours of operation are from 6 a.m. to 2 a.m., Eastern Standard Time.

Taxpayers should mail all returns and payments directly to the Philadelphia Service Center at the following address:

Internal Revenue Service
Philadelphia, PA  19255-0215
USA

Those taxpayers wishing to send payments and returns via courier should use the following address:

Internal Revenue Service
11601 Roosevelt Blvd.
Philadelphia, PA  19154
USA
Phone:  1-215-516-2000

To Request U.S. Tax Forms and Publications

By Internet: http://www.irs.gov/
Problems downloading? Call the Help Desk (309) 229-7111

By Mail
IRS Eastern Area Distribution Center
P.O. Box 85047
Richmond, VA 23261-5074

By Fax: (703) 368-9694

Forms for Prior Years:
IRS-Western Area Distribution Center
Rancho Cordova, CA 95743-0001

Contact for issues not resolved through normal channels:

Internal Revenue Service
Taxpayer Advocate
P.O. Box 193479
San Juan, Puerto Rico 00919

Phone: (787) 622-8930
Fax: (787) 622-8933

Instructions for Certification on Form W-7

Persons who are not U.S. citizens but who are required to file U.S. taxes may obtain a W-7 application to request Individual Tax Identification Number (ITIN) from the IRS website at www.irs.gov.

The American Citizens Services (ACS) Unit of the U.S. Embassy in Santo Domingo is part of the U.S. Department of State, not the IRS, and therefore does not issue ITIN numbers.  However, the ACS Unit can and does certify the supporting documents to be forwarded to the IRS along with the W-7 application.  To certify the supporting documents, you must make an appointment for a notarial service through our online booking system.  The Consular Section requires the following documents to perform the notarization:

• Form W-7
• Proof of identity (e.g., a driver’s license or passport)
• Proof of foreign nationality (e.g., an original birth certificate or passport)
• Fee: The cost is US$ 50.00 for each notarial signature/seal (for updated fee information please visit our website https://do.usembassy.gov/u-s-citizen-services/fees-forms-payment/)
• The reason why the ITIN number is being requested

Mail the completed Form W-7 application together with the certified documents to:

Internal Revenue Service
Philadelphia Service Center
ITIN Unit
P.O. Box 447
Bensalem, PA  19020

For more information on other tax assistance, please visit the IRS website at http://www.irs.gov/.  Taxpayers may also e-mail their inquiries via the IRS website by using the following prompts:

At the IRS home page, select Help from the list of categories at the very top of the page.  Under the Help category, select Tax Law Questions.