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CSA TRAVEL INFORMATION GUIDE
How do you advise the U.S. Internal Revenue Service (IRS) about your closer connection
to Canada?
If you are eligible to claim a closer connection with Canada, it will be necessary for you to complete
and file U.S. IRS form 8840 Closer Connection Exemption Statement for Aliens with the U.S. Internal
Revenue Service. Filing is typically due by June 15 each year.
Many travellers take the added steps of carrying a copy of their most recently filed 8840 form with
them when crossing the border into the U.S. as additional proof of their intention to enter the U.S.
temporarily as a visitor with the plan of returning to Canada at the end of their “allowed” visit period.
The Canada Revenue Agency’s publication Canadian Residents Going Down South is an excellent
reference document, including an IRS 8840 form that Canadian travellers staying in the U.S. for an
extended period each year should obtain.
Individual Taxpayer Identification Number (ITIN)
For Canadians who must file a U.S. tax return, you will need an identification number. Generally, this
is a U.S. social security number (SSN). If you were ever issued a social security number in the past,
you should use it. If you do not have an SSN, never use your Canadian social insurance number (SIN)
as a substitute. The SIN and SSN both contain 9 digits. You could be inadvertently accused of trying to
steal the identity of the American resident who owns the corresponding number.
A non-resident alien who does not have an identification number must apply for one. The substitute
for an SSN is an IRS individual taxpayer identification number (ITIN). ITINs are intended for tax use
only. They have no effect on being allowed to work or live in the United States. Information and the
necessary application forms can be obtained from the U.S. Internal Revenue Service.
Canadian buyers and sellers of U.S. real property interests may require an Individual Taxpayer
Identification Number (ITIN) to request reduced tax withholding when disposing of a property, and
to pay any required withholding under FIRPTA (Foreign Investment in Real Property Tax Act). As not
every seasonal property – based on its make-up or sale price – is subject to mandatory withholding
tax, it is important that you check with the local tax collecting office to determine if you require an
ITIN.
Transferees (buyers) and foreign transferors (sellers) of U.S. real property interests must provide their
ITINs, names and addresses on withholding tax returns, applications for withholding certificates,
notice of non-recognition, or elections when disposing of a U.S. real property interest. Individuals
must have a tax requirement and file a valid federal income tax return to receive an ITIN, unless they
meet an exception. ITINs are intended for tax purposes only. They have no effect on being allowed to
work or stay longer in the U.S.
ITIN first-time applicants must now:
•
•
Apply using
FormW-7 Application for IRS Individual Taxpayer Identification Number
.
•
•
Attach a federal income tax return to the
FormW-7
.
Applicants who meet an exception to the requirement to file a tax return must provide documenta-
tion to support the exception.