Why ITINs are critical for online course creators from Burkina Faso
Online course creators based in Burkina Faso face a specific challenge when receiving payments from U.S. platforms like Teachable, Thinkific, Kajabi, or Udemy. These platforms, and the payment processors they use, often require instructors to provide a U.S. tax identification number to comply with IRS regulations, particularly concerning U.S. source income. For individuals who are not U.S. citizens or residents and therefore cannot obtain a Social Security Number (SSN), the Individual Taxpayer Identification Number (ITIN) becomes the necessary alternative. Without an ITIN, these platforms may withhold U.S. taxes at the highest rate (30%), significantly reducing your earnings. Obtaining an ITIN allows you to file U.S. taxes correctly, claim any applicable treaty benefits (though none exist between the U.S. and Burkina Faso), and avoid excessive withholding, ensuring you receive your full payout minus any legitimate tax obligations.
Eligibility and triggers for requiring an ITIN
An ITIN is required for any individual who needs to file a U.S. tax return or provide a U.S. tax identification number to a U.S. payer, but is ineligible for an SSN. For online course creators in Burkina Faso, the trigger is typically the requirement by your course platform or its payment processor to complete IRS Form W-9 or W-8BEN. If you are earning income from U.S. sources, such as sales to U.S. customers through these platforms, the IRS requires you to report this income. Even if you do not owe U.S. taxes, you may still need to file a U.S. tax return (like Form 1040-NR for non-resident aliens) if your gross U.S. income exceeds certain thresholds or if required by a tax treaty (though not applicable for Burkina Faso). The crucial point is that payment processors need a valid U.S. tax ID to report your earnings to the IRS correctly. Without an ITIN, they default to the highest withholding rate.
Required documents for an ITIN application
To apply for an ITIN, you must complete and submit IRS Form W-7, Application for IRS Individual Taxpayer Identification Number. This form requires personal information, including your name, foreign address, and details about your U.S. tax filing requirement. Alongside the W-7, you must provide original or certified copies of documents verifying your identity and foreign status. The most commonly accepted document is a valid passport. If a passport is unavailable, other documents like a national identity card, birth certificate, or driver's license can be used, but you must submit at least two documents from the IRS-approved list. Critically, you must also provide documentation proving your need for an ITIN, which for online course creators typically involves a U.S. tax return (Form 1040-NR) or a statement from a third party explaining why you need an ITIN. Some platforms might provide a specific letter or form necessitating the ITIN, which can serve this purpose if properly documented.
The ITIN application process
The ITIN application process involves several steps. First, you must determine if you have a U.S. tax filing requirement that necessitates an ITIN. For online course creators, this is usually tied to earning income from U.S. platforms. Once confirmed, you will complete IRS Form W-7 and gather your supporting documentation, including a valid passport or equivalent identity documents. You then have three main options for submitting your application: 1. Mail the W-7 and original supporting documents directly to the IRS in Austin, Texas. This is the least recommended option as it involves sending originals, which can take a long time to return and carries risk. 2. Visit an IRS Taxpayer Assistance Center (TAC) in the U.S. (not applicable for residents of Burkina Faso). 3. Apply through a Certified Acceptance Agent (CAA). This is the most efficient and secure method, as the CAA can verify your original documents and forward your application to the IRS. The typical timeline when applying through a CAA is 5–10 business days for the IRS to issue the ITIN once they receive the application, although IRS processing times can vary. After receiving your ITIN, you will use it to complete tax forms for your payment processors.
Common mistakes for online course creators from Burkina Faso
Online course creators from Burkina Faso often make specific errors when applying for an ITIN. A frequent issue is failing to provide the correct documentation that proves the need for an ITIN. Simply stating you earn U.S. income might not suffice; you may need to attach a draft of your U.S. tax return (Form 1040-NR) or a specific statement explaining your tax liability, especially since there is no U.S.-Burkina Faso tax treaty. Another common pitfall is mailing original identification documents directly to the IRS, which can lead to delays or loss. Ensure your Form W-7 is filled out completely and accurately; errors in name, address, or tax identification numbers can cause rejections. For those who have previously filed U.S. taxes, using a different name than what appears on previous IRS records is a common cause for the application to be rejected. Double-check that your application is complete before submission.
Benefits of using a Certified Acceptance Agent (CAA)
Applying for an ITIN through a Certified Acceptance Agent (CAA), such as itin.net, offers significant advantages for online course creators in Burkina Faso. CAAs are individuals or entities authorized by the IRS to assist applicants in obtaining ITINs. The primary benefit is that a CAA can review your application and verify your original identification documents, such as your passport. This means you do not have to mail your valuable original documents to the IRS. The CAA submits your application package to the IRS on your behalf, which often expedites the process compared to direct mailing. This verification service by the CAA reduces the risk of your application being rejected due to incomplete documentation or incorrect verification of your identity documents. For individuals in Burkina Faso, this is particularly beneficial as it eliminates the need for international courier services for originals and provides a layer of expert review before submission to the IRS.
Next steps after obtaining your ITIN
Once you receive your ITIN from the IRS, your next step is to update your tax information with the platforms and payment processors you use. This typically involves submitting an updated Form W-9 or Form W-8BEN to them, now including your newly issued ITIN. This action will ensure that your earnings are taxed at the correct rate, preventing the 30% backup withholding that applies when a U.S. tax ID is missing. For online course creators generating significant revenue, it is also advisable to consider setting up a U.S. entity, such as a U.S. LLC, to manage your business operations and potentially optimize your tax situation. You may also need an EIN (Employer Identification Number) if you plan to hire employees or operate certain types of businesses. Setting up a U.S. bank account can also streamline your financial transactions. If you are unsure about the U.S. tax filing requirements or business setup, consult with a qualified tax professional or attorney. For assistance with your ITIN application, you can review our Standard Package pricing.
Practical tips
- Use the exact same legal name across Form W-7, your passport, and any prior IRS correspondence; mismatched name fields are the most common cause for ITIN application rejection.
- Ensure your application for an ITIN is accompanied by a valid U.S. tax return (Form 1040-NR) or a clear written explanation from your course platform detailing why an ITIN is required for your specific income.
- When applying through a Certified Acceptance Agent, provide clear, legible copies of your identification documents as specified by the agent. This aids in the verification process.
- If you have previously filed U.S. taxes, even years ago, ensure the name and identifying information on your current Form W-7 match those records precisely.
- Keep a copy of your submitted Form W-7 and all supporting documents for your records. Note the date of submission for tracking purposes.
Frequently asked questions
As an online course creator in Burkina Faso, do I always need an ITIN?
You need an ITIN if you are earning income from U.S. sources (e.g., U.S. customers on platforms like Udemy, Teachable) and the platform or its payment processor requires you to provide a U.S. tax identification number, or if you are required to file a U.S. tax return. Without it, you may face a 30% withholding tax on your earnings.
Can I apply for an ITIN without sending my original passport?
Yes, you can apply through a Certified Acceptance Agent (CAA) like itin.net. A CAA is authorized by the IRS to verify your original identification documents, such as your passport, without you having to mail them to the IRS. This is the most secure and recommended method.
What is the processing time for an ITIN application for someone in Burkina Faso?
When filed through a Certified Acceptance Agent (CAA), the IRS typically processes ITIN applications within 5–10 business days. However, actual processing times can vary depending on the IRS workload and any specific circumstances. It is always wise to apply well in advance of any tax deadlines.
Since there's no U.S.-Burkina Faso tax treaty, does this affect my ITIN application?
The absence of a tax treaty means you generally cannot claim reduced withholding rates on U.S. source income based on residency. However, it does not prevent you from obtaining an ITIN if you have a U.S. tax filing requirement. You will still need the ITIN to report your income and avoid the default 30% withholding.
What if I can't provide a U.S. tax return with my ITIN application?
If you are applying for an ITIN before filing your U.S. tax return (e.g., because your platform requires it upfront), you can often submit a statement explaining your need for the ITIN and detailing your expected U.S. income. Your course platform may be able to provide a letter to support your application. Confirm with the IRS or a tax professional what documentation is acceptable in your specific situation.
How do I update my payment processors with my new ITIN?
Once you receive your ITIN, you will typically need to fill out an updated W-9 or W-8BEN form provided by your course platform or payment processor. Submit this form with your ITIN. This ensures accurate tax reporting and prevents excessive withholding.
