Niles Elber Analyzes Preparing Tax Returns for Taxpayers with ITINs at IRS Nationwide Tax Forum

This seminar is a practical guide for preparing federal returns for taxpayers and dependents who file with IRS individual taxpayer identification numbers (ITINs), with an emphasis on avoiding delays, rejections and notices. We’ll address common ITIN scenarios, how ITIN status affects dependent claims and credit eligibility, and what documentation tends to drive IRS questions. The session also covers paid-preparer due diligence requirements when Earned Income Tax Credit (EITC) and Child Tax Credit (CTC)/Additional Child Tax Credit (ACTC) are claimed, including the documentation mindset needed to reduce preparer penalties. By the end of this seminar, participants will be able to:

• Identify which federal tax obligations apply to an ITIN holder regardless of immigration status, and which credits are categorically unavailable.
• Apply the correct worker-classification rules to ITIN holders and recognize when an employer's use of a 1099 is a misclassification, not an immigration-status accommodation.
• Advise an S-corporation officer who lacks work authorization, applying the reasonable-compensation rule of Veterinary Surgical Consultants without invoking the limited-partnership exclusion of § 1402(a)(2).
• Identify the bright lines that separate competent practice from preparer penalty and criminal exposure when serving ITIN clients.