Canadian businesses operating in the United States may be affected by new changes to the process to obtain an employer identification number (EIN).
The IRS has announced that, beginning May 13, 2019, Canadian individuals who are listed as the "responsible party" for a business must obtain a U.S. Individual Tax Identification Number (ITIN) and include that information where the business makes a request for an EIN. Previously, Canadian "responsible parties" were able to indicate non-U.S. status instead of providing a U.S. ITIN.
Because obtaining an ITIN can be an onerous process, Canadian businesses that believe they may need an EIN in the near future should apply to the IRS before the rules change on May 13, 2019. The ITIN process can take several weeks, and may require individuals to present original documents to verify their identity and citizenship.
Download this edition of the TaxNewsFlash to learn more.
© 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.