- November 15, 2017
- Posted by: eb5-economist
- Category: About the EB-5 Program
The following is an excerpt from a post by USA ITIN Experts
In the United States, it is the responsibility of the employer or income-paying entity to properly withhold income taxes for payees including those individuals investing in the United States through the EB-5 immigrant investor program. Individuals, including foreigners, who are not eligible for a social security number (SSN) are required to obtain an ITIN for the purposes of reporting income to the IRS.
With respect to the EB-5 program, the withholding agent is generally the limited partnership or limited liability company formed specifically for the purpose of investing EB-5 funds into a job creating entity. ITINs are needed for the fund manager to 1) properly withhold income tax on distributions to investors and 2) submit accurate statements to the IRS at year-end. If EB-5 fund managers or regional centers fail to properly withhold income taxes, they’re likely to be fined or penalized by the IRS. It’s, therefore, important to ensure investors have the proper tax IDs to avoid future issues with the IRS. USA ITIN Experts is a fully licensed service provider for ITIN procurement and has a unique process specifically designed for EB-5 investors. Contact their team if you’d like to learn more.