As someone who has dealt with multiple ITIN employees, one issue I ran into was with state tax reporting systems. Some state systems initially rejected submissions with ITINs because their validation was expecting an SSN format. Make sure to check if your state has specific guidelines for reporting employees with ITINs.

I've been using QuickBooks for payroll with ITIN employees and it handles them just fine. You just enter the ITIN in the SSN field when setting up the employee profile. The system treats it the same as an SSN for tax calculations and reporting. One tip - make sure to double-check that the ITIN format is correct (9XX-XX-XXXX) before submitting any payroll reports. I had one instance where I accidentally transposed numbers and it caused issues with my quarterly filing. Also, keep copies of their ITIN documentation in their employee files. During my state audit last year, they specifically asked to see proof of the ITINs I had reported. Having the official IRS letters made that process much smoother. For state reporting, I haven't had issues in my state (Texas), but I've heard some states can be pickier about the format. It's worth calling your state's employer services line to confirm their requirements before your first filing.

Has anyone had experience with expediting the Form 8802 processing? I just realized I need to submit this for a new position but I only have about 4 weeks before I need the certificate. The IRS website says standard processing is 6-8 weeks which won't work for my timeline.

I went through this exact same confusion last year! For Line 7, you typically want to request certification for the tax year that your employer or the foreign tax authority will need for their records. Since you're starting in March 2025, I'd recommend requesting certification for 2024 (most recently completed tax year) as that's what most employers expect. However, @Sebastián Stevens made a great point - you can actually request multiple years on the same form for the same fee. Given the 6-8 week processing time and your March start date, I'd suggest requesting both 2024 and 2025 to cover all your bases. The IRS will use your 2023 filing (and 2024 once filed) to verify your residency status even for future year certifications. One thing that helped me was calling my HR department to ask specifically which tax year they needed - turns out they just needed proof of US tax residency status and didn't care about the specific year. This might save you some overthinking!

Isn't the whole point of an S Corp to save on self-employment taxes? If you're making $180k in revenue, paying $850 for an accountant might actually save you money in the long run through better tax strategies. Software can file forms but won't necessarily optimize your tax situation.

Just wanted to add another perspective here - I've been doing my own S Corp taxes for the past 4 years and have tried several of the software options mentioned. One thing that really helped me was understanding that the IRS has free fillable forms online that you can use for Form 1120-S if you're comfortable with tax forms. It's not as user-friendly as commercial software, but it's completely free and gets the job done. That said, if you do go the software route, I'd strongly recommend avoiding any program that doesn't specifically market itself as handling S Corp returns. The nuances around reasonable compensation, built-in gains, and pass-through calculations are too important to mess up with generic business software. Also, don't forget that as an S Corp, you'll need to file quarterly payroll taxes (941s) if you're paying yourself a salary, which is separate from the annual 1120-S filing. Make sure whatever solution you choose accounts for that ongoing compliance requirement too.

Just share your EIN with them. All US citizens have an EIN for tax purposes and that's what they're asking for.

I work in international trade compliance and see this confusion all the time. The seller is likely required by Italian tax authorities to document that they're exporting outside the EU to justify the VAT exemption on their end. Here's what you should tell them: "I am a private individual residing in the United States. US individuals do not have VAT registration numbers as the US does not have a VAT system. Per EU VAT Directive 2006/112/EC, exports to non-EU countries are zero-rated for VAT purposes when you can demonstrate the goods have left the EU." Your US shipping address serves as proof of export destination. If they're still hesitant, suggest they contact their local tax office (Agenzia delle Entrate) for clarification on export procedures to the US. Most sellers just need reassurance they're following the rules correctly. The $65 value is well under any threshold that would require additional documentation from you as the importer.

When I bought my company car, HR gave me a fancy official bill of sale that had a separate line for sales tax. Make sure u get something like that!! Some states also have special forms for this situation. In my state they had a specific form (MV-82B I think?) that showed the tax was already paid. Without it I woulda been charged again at DMV for sure lol!

This is actually pretty standard practice when buying from a business entity, including your employer. I went through this same process when I bought a company vehicle a few years ago and was initially confused too. The key difference is that businesses are registered tax collectors with the state, so they're required to collect and remit sales tax on vehicle sales just like a dealership would. When you buy from a private party, neither you nor the seller is a registered tax collector, so you handle it at the DMV. Make sure you get a detailed bill of sale that clearly itemizes the sales tax amount, includes the vehicle VIN, and shows your company's tax ID number. This documentation will be crucial when you register the vehicle - it proves the tax was already collected and prevents double taxation. Most states have systems where this gets reported electronically, so the DMV should already know the tax was paid when you show up to register. Your $1,320 in sales tax on a $16,500 purchase sounds about right for most states (around 8% rate). Just make sure all the paperwork is properly documented and you should be good to go!