The many different terms applied to tax professionals can seem confusing, and it can be difficult to know which one you may require the services of. To help clarify matters, here is a description of a Certified Acceptance Agent.
What is a Certified Acceptance Agent or CAA?
Put simply, a certified acceptance agent or CAA is a company or individual authorized by the Internal Revenue Service (IRS) to help those individuals classed as aliens or foreign taxpayers to apply for an Individual Taxpayer Number (ITIN), if they are not eligible to obtain a Social Security Number (SSN).
What are the differences between a Certified Acceptance Agent and an Acceptance Agent?
Both agents can help individuals apply for an IRS or ITIN number, but there are two main differences between them both:
- A certified acceptance agent can certify the identification documents of applicants.
- A certified acceptance agent can receive the IRS ITIN number.
An acceptance agent is unable to perform either of the above tasks.
How can you become a Certified Acceptance Agent?
Mandatory training is required by the IRS for all new and renewing applicants for Acceptance Agents. An application form must be completed (this can be found on the IRS website), then mandatory Acceptance Agent Training must be completed, signed and submitted. A certification form must then be attached for each authorised representative, to form 13551. Finally, forensic training must be completed and the certificate of completion submitted to the IRS.
In addition to the above four steps, every Acceptance Agent must submit a minimum of five W-7 applications per year, to be permitted to remain within the program. Once the application has been received by the IRS, background and tax compliance checks will be carried out by the IRS.
How can a Certified Acceptance Agent help you?
A CAA can you help prepare your tax return and W-7 form, verify documents, and submit your completed application to the IRS. The agent will then keep a close track on your application and contact the IRS directly if necessary. The CAA will also be notified about your application, and will receive a copy of the ITIN when it is issued.