As of 2026, the IRS has not changed the basic eligibility rules for obtaining an Individual Taxpayer Identification Number, or ITIN.
Foreign individuals still need an ITIN when they are required to have a U.S. taxpayer identification number for federal tax purposes but are not eligible for a Social Security number.
For foreign sellers involved in FIRPTA transactions, timing remains especially important. The IRS generally allows a foreign seller to apply for an ITIN once there is a legally binding contract for the sale of a U.S. real property interest. Applying too early, without another valid tax reason, may result in denial.
What has changed is not who qualifies for an ITIN, but how important timing, documentation, and accuracy have become.
Current IRS processing guidance still tells applicants to allow several weeks for ITIN application status, with longer timelines during peak tax season or when applying from abroad. If the IRS determines that documentation is missing, incomplete, or inconsistent, the application may be suspended while the IRS requests additional information. That can significantly extend the timeline.
Why this matters for foreign sellers:
An ITIN is often needed to file the required U.S. tax return after a FIRPTA transaction
Refunds tied to FIRPTA withholding may be delayed if the seller does not have a valid ITIN
Incomplete or inconsistent applications can trigger IRS correspondence and longer processing times
Waiting until tax season increases the risk of extended delays
Applying before there is a valid FIRPTA basis may result in denial
The takeaway is simple: ITIN eligibility rules have not meaningfully changed, but processing delays remain a real issue.
For foreign sellers, accuracy and timing matter. The earlier the ITIN issue is identified in the transaction, the easier it is to avoid refund delays, IRS correspondence, and unnecessary frustration after closing.
