Smashwords, tax and EINs

[tirial]

Since it's that time of year, I was looking into tax and ITINs, and cringing at the paperwork. I found this blog entry that says authors outside the US who have set up a publishing company can get an EIN with one phonecall:

catherineryanhoward.com/2012/02/24/non-us-self-publisher-tax-issues-dont-need-to-be-taxing/

Has anyone here gone the EIN route, rather than getting an ITIN?

[Ted]

Getting an ITIN is quite simple if you follow the guidelines on Smashwords. The problem I had with getting my ITIN was the picture on my drivers licence was dark, due to the security design of the licence to prevent copying.

I got a copy of my passport for free in about 8 minutes. Make sure you get copies of pages of 2, 3 and 4 your passport.

You've got until the end of 2012 to get your ITIN, so if you file now you should get your number within 6-8 weeks (according to the IRS).

I don't see the sense of getting an EIN. It may be quicker than getting an ITIN, but getting an EIN tells the IRS you are a company, whether sole proprietor or incorporated or whatever, and could open up a whole can of worms.

David Gaughran, who was the guinea pig and wrote the article states; "First things first: I’m no tax expert. In fact, the entire subject turns my brain to soup."

I'd certainly check with a tax lawyer before getting an EIN with the IRS, just to be on the safe side.

Sometimes quicker isn't better, just quicker.

[russellphillips]

I found getting an ITIN to be long-winded, but not especially difficult. If you do decide to get an ITIN, I wrote a blog post with detailed instructions on how to do it:
russellphillips.wordpress.com/2012/03/28/uk-authors-dont-pay-us-tax/

[scrawny]

Really good article that was easy to follow. Thanks Russell.