“My U.S. clients kept asking for a tax ID before they would pay. Nine weeks after the CAA call I had my ITIN and a W-8BEN on file with every one of them.”
Background
Lena designs product interfaces for U.S. software companies from Berlin. Two of her clients began withholding 30% of each invoice because she could not complete a W-8BEN with a taxpayer number, and a third refused to onboard her at all.
She had read that applying for an ITIN meant posting her passport to Texas. As a frequent traveller that was not an option.
What we did
The eligibility review took one call. Because Lena is a resident of a treaty country receiving U.S.-source income, her application qualified under the treaty-benefit reason, which can be filed without a tax return.
We prepared Form W-7, attached a letter from one client confirming the income, and verified her passport over a recorded video session as an IRS Certified Acceptance Agent. The certified package went to the IRS the same week.
Outcome
The CP565 notice arrived in nine weeks. Lena sent updated W-8BEN forms to all three clients, the 30% withholding stopped, and the third client onboarded her the following month.
