2

I live in Morocco and I recently ordered an EIN number from the IRS because I work in Envato Market and because we have an income tax treaty with the US of a (10%). Meaning that, If someone from the US buys one of my items, the IRS takes 10% instead of 30%.

The IRS gave me my EIN number and it works fine. Even though I haven't received a confirmation letter in the mail. So, my question is, how do they know that I really live in Morocco without any confirmation from me? What if someone from Egypt for an example called them pretending he's from France and asked for an EIN number!

I know that this is a dumb question! But I was just wondering what could happen to my registration with the IRS since I still haven't received that confirmation letter in the mail and is it that important?

Thank you in advance!

  • 1
    It might well be that you can squirrel an EIN from them that you shouldn’t have got, but an EIN doesn’t cost the IRS anything. However, once you have one, you have to file taxes every year, and that’s going to cost you - even if you don’t owe taxes, filing is effort and therefore costs you. Basically, by asking for an EIN you declare you have to pay taxes. – Aganju Apr 12 '18 at 5:11
0

I don't know specifically about EINs for foreigners. But in general, the US tax system is based on the government mostly assuming that what tax payers tell the government is correct. Every year they pick some number of tax returns to audit and if they catch you lying they make you pay big penalties. So you have an incentive to tell the truth. But people lie all the time, and many of them get away with it.

I suppose if you submit a tax return showing your address as "Egypt" but you claim a tax benefit available to Morocco but not to Egypt, that would ring some bells at the IRS and they might investigate.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.