If you live in Puerto Rico and are earning U.S. related income, investing in U.S. property, freelancing for U.S. clients, or filing taxes jointly with a U.S. spouse, you may need an ITIN issued by the IRS.

Puerto Ricans are U.S. citizens by birth. But not everyone living on the island is automatically required to file a U.S. federal tax return. This creates some confusion, especially for freelancers, investors, and those with cross-border family or financial connections. That’s where the ITIN becomes important.

At House of Bookkeepers, an IRS-Certified Acceptance Agent (CAA), we help applicants in Puerto Rico apply for and obtain ITIN letters securely — without having to mail passports to the mainland U.S.

What Is an ITIN?

An ITIN is a nine-digit tax processing number (format: 9XX-XX-XXXX) issued by the IRS to individuals who:

  • Need to file or report U.S. taxes, and

  • Are not eligible for a U.S. Social Security Number (SSN).

What an ITIN is NOT:

  • It is not a work permit.

  • It is not an immigration status.

  • It is not the same as an SSN.

 

Who in Puerto Rico Commonly Needs an ITIN?

Even though Puerto Rico has unique tax rules, some residents may still require an ITIN. Here are the most common cases:

  • Freelancers & Digital Workers

If you work for U.S. companies or platforms like Upwork, Fiverr, PayPal, Stripe, AdSense, or Amazon, payments may require an ITIN for proper tax reporting.

  • Property Investors

If you own or sell property in the mainland U.S., FIRPTA (Foreign Investment in Real Property Tax Act) applies. The IRS withholds 15% of the sale price, and you’ll need an ITIN to file a U.S. return and claim any refund.

  • Filing Jointly with a U.S. Spouse

If your spouse is a U.S. mainland taxpayer, you’ll need an ITIN to be included on the joint tax return and access spousal credits.

  • Investors in U.S. Companies & Stocks

Dividends, royalties, and other income from U.S. businesses may be subject to withholding. With an ITIN, you can file a tax return and reconcile your actual liability.

  • Dependents & Students

Children, dependents, or Puerto Rican students studying in the U.S. may also need ITINs if they are listed on a federal return.

Benefits of Having an ITIN

  • File U.S. taxes legally and avoid penalties.

  • Claim refunds for overpaid withholding taxes.

  • Comply with FIRPTA rules for U.S. real estate.

  • Be included on a U.S. spouse’s or parent’s tax return.

  • Improve access to U.S. banks, payment platforms, and institutions (often paired with an EIN/LLC).

 

Step-by-Step: How to Apply for an ITIN from Puerto Rico in 2025

Step 1: Confirm Eligibility
You need a valid U.S. tax reason such as:

  • Filing a return for freelance income or investments.

  • Selling or renting U.S. property.

  • Filing jointly with a U.S. spouse.

  • Being listed as a dependent on a U.S. return.

Step 2: Complete Form W-7
This is the official IRS application form for an ITIN. Accuracy is critical to avoid delays or rejections.

Step 3: Gather Required Documents

  • Valid passport (scan copy works with a CAA; otherwise, IRS requires original or certified copy).

  • U.S. federal tax return (Form 1040 or 1040-NR), unless you qualify for an exception.

  • Supporting documents (visa, income statements, property contracts, scholarship letters, etc.).

Step 4: Apply Through a Certified Acceptance Agent (CAA)
With House of Bookkeepers, you don’t need to risk mailing your passport. As an IRS CAA, we verify your documents in Puerto Rico and handle the application directly.

ITIN Processing Timeline in 2025

  • Standard processing: 8–13 weeks

  • Peak filing season (Jan–Apr): up to 13–16 weeks

  • At HOB, we can retrieve your ITIN number within ~2.5 months by contacting the IRS

    • Note: The official IRS Letter CP565 will still take the full time to arrive by mail

 

Why Use House of Bookkeepers (IRS CAA)?

  • ✅ Passport stays safe — verified locally in Puerto Rico.

  • ✅ Higher success rates and fewer rejections.

  • ✅ End-to-end service: W-7 form, COA, tax return, and IRS submission.

  • ✅ Official IRS authorization (listed CAA).

  • ✅ Updates until your ITIN approval letter (CP565) is issued.

 

Common Mistakes to Avoid

  • Submitting incomplete or inaccurate Form W-7.

  • Using uncertified passport copies without a CAA.

  • Forgetting to attach a U.S. tax return (unless exempt).

  • Mailing documents through unreliable couriers.

  • Believing ITIN = work permit or immigration status (it does not).

 

Quick FAQs – ITIN from Puerto Rico

Q1. Can I apply for an ITIN from Puerto Rico?
Yes. With House of Bookkeepers as your IRS CAA, you don’t need to travel or mail your passport to the U.S. mainland.

Q2. Do Puerto Ricans always need an ITIN?
Not always. Puerto Ricans are U.S. citizens, but ITINs are required if you don’t qualify for an SSN and still need to file U.S. federal tax returns (e.g., property investors, dependents, or foreign spouses).

Q3. How will I know if my ITIN is approved?
The IRS sends Letter CP565 once your ITIN is issued. We notify you immediately.

Q4. Do I need a U.S. address?
A U.S. address is not mandatory. The IRS can send your ITIN letter directly to your foreign (non-U.S.) address as listed on your application. However, if you have a U.S. residential address or a mail forwarding service, you may use it for convenience and faster delivery.

Alternatively, we can also receive the letter at our address and send you a scanned copy by email.

Q5. How will you verify my identity?
As part of the IRS verification process, we’ll ask you to provide a selfie of yourself holding the passport’s information page. This simple step confirms that the passport belongs to you and helps us complete your identity verification securely.

Apply with Confidence

At House of Bookkeepers, we make ITIN applications simple, safe, and stress-free for applicants in Puerto Rico.

📍 IRS-Certified Acceptance Agent (CAA) – Puerto Rico Service
🌍 Website: https://www.houseofbookkeepers.com

Start your ITIN application today — and protect your U.S. income, refunds, and compliance.