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I am UK resident who has just purchased shares in Delaware

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startup. I have been asked...
I am UK resident who has just purchased shares in Delaware startup. I have been asked to complete IRS form 83(b) but I don't have a SSN/TIN as I don't file my taxes in the US. Can you assist? thanks.
Submitted: 6 years ago.Category: Tax
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8/2/2011
Tax Professional: Lev, Tax Advisor replied 6 years ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,609
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LEV :

Hi and welcome to Just Answer!
An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service. IRS issues ITINs to foreign nationals and others who have federal tax reporting or filing requirements and do not qualify for SSNs.
To obtain an ITIN, you must complete IRS Form W-7, IRS Application for Individual Taxpayer Identification Number . The Form W-7 requires documentation substantiating foreign/alien status and true identity for each individual. You may either mail the documentation, along with the Form W-7, to the address shown in the Form W-7 Instructions, present it at IRS walk-in offices, or process your application through an Acceptance Agent authorized by the IRS.
Here are Acceptance Agents in UK - http://www.irs.gov/individuals/article/0,,id=111081,00.html
When claiming treaty benefits - There was a change in the IRC section 1441 regulations which mandates the use of a TIN in order to claim tax treaty benefits.

Customer: Thanks. I knew about form W7 but didn't know that there were UK acceptance agencies. The problem is that I have 30 days to file Form 83b but obtaining a ITIN takes longer! Is it possible to submit the W7 form along with the completed 83(b)? Thx
LEV :

You may try to submit 83b election and W7 form (with all supporting documents) together.
However - there is no established procedure and I can not guarantee that will work.. try it, but do not expect a lot of forbearance from the IRS. They are pretty strict about filing deadlines that reduce the revenue. Another option: Do you expect the fair market value of the stock to increase radically in 10 to 12 weeks? I thought not. Why not enter into an executory stock purchase agmt with him agreeing to the price and subjecting transfer of the stock to the condition that he has received his ITIN. The deadline for filing the 83(b) election with respect to a transfer is "not later than 30 days after the date of such transfer." So this should satisfy the IRS, although they might contend that the stock was "constructively transferred" when the Agmt was signed. To be safe the Agmt could just call for transfer at a price to be determined by your Board of Directors on the date of the actual transfer. Since the price is not known till then there can't be constructive transfer. To be safer, consult your corporate tax lawyer.

LEV :

Try to contact Acceptance Agents in UK - may be you can get ITIN faster.

Lev
Lev, Tax Advisor
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