The ITIN, Individual Taxpayer Identification Number, is necessary for individuals who are required to file tax returns in the United States and want to open a bank account in the U.S. But they do not have a Social Security Number, neither are they eligible to get one.
While you can file for and get an ITIN for yourself, it is recommended that you hire a professional to do the job for you. Why hire a professional? Well, for starters, we can help you get your ITIN the easy way!
Before we get into the details of how, let us answer some commonly asked questions related to ITIN for you that will help you understand the whole process better.
An Individual Taxpayer Identification Number (ITIN), is a tax processing number that is issued by the Internal Revenue Service (IRS). It consists of a nine digit number that always begins with the number 9. For example 9XX XXX XXX.
The ITIN is issued by the IRS to individuals who are required to file tax returns in the United States, but do not have a Social Security Number (SSN), neither are they eligible for it. These numbers are issued regardless of the fact that the individual is an immigrant or U.S resident. As under the Internal Revenue Code, both the U.S residents and non-resident aliens may have tax filing responsibilities.
The Internal Revenue Service issues ITINs to individuals who are required to file tax returns in the United States, but are not eligible for a Social Security Number. These can be:
A tax ID is required for inclusion on returns, statements and other tax-related documents. The tax ID can be a Social Security Number, an Employer Identification Number or an Individual Taxpayer Identification Number. Without a tax ID, your returns will not be accepted by the IRS.
If you are an individual who is required to furnish a federal tax identification number or to file a federal income tax return, yet you do not have or qualify for the SSN, you are going to need an ITIN. It will serve as an identification number for filing your taxes, it allows you to open a bank account or to apply for a mortgage loan, you can claim tax refunds from the IRS if you are eligible and it also allows you to file your taxes and claim dependents you are supporting in the United States, Canada and Mexico.
An ITIN is used for federal tax reporting only and is not meant to serve any other purpose. It is issued by the IRS to help individuals comply with the U.S. tax laws, who are not eligible for a Social Security Number (SSN). So that their tax returns filing process and any eligible tax returns are processed efficiently. An ITIN is needed if you are an individual who is due to receive payments like annuities, dividends, pension, royalties or rental payments etc. It is also required to open a bank account in the U.S. However, it does not serve as a work permit in the U.S. Neither does it grant Social Security benefits to the holding individual or the Earned Income Tax Credit.
The ITIN is not used for the following:
Individuals applying to get an ITIN must attach their federal tax returns with it. Unless you qualify for one of the five exception categories, then you do not need to attach your tax returns with your ITIN application.
To begin the ITIN application process, you need to have the following documents ready.
You can apply for an ITIN by filling out and submitting the latest version of the form W-7 from here. You must attach a valid federal income tax return with it unless you are eligible for an exception. Also, you must include your original proof of identification or copies attested by issuing agency and foreign status documents.
As you will be attaching your federal tax returns with the ITIN application, it cannot be sent to the address listed in the forms 1040, 1040A or 1040EZ. Instead send in your form at the following address:
Internal Revenue Service (IRS)
Austin Service Center
P.O. Box 149342
Austin, TX 78714-9342
You can apply for an ITIN at any time during the year. However, make sure that after you have filed your federal tax returns, then you submit the form W-7 and attach the return with it. If you file the tax return attached to form W-7 after the return’s due date, you may face interest payments and/or a penalty. You can also check for the federal tax returns exemptions eligibility criteria and can only submit the form W-7 along with the proof of your identification and foreign status.
After filing your forms and returns to the IRS you can get an ITIN within 4-6 weeks.
An ITIN is valid as long as the individual who has it uses it to file their taxes every year and to comply with the U.S. tax reporting requirements. ITINs that have not been in use for the past three years on a federal tax return will become invalid for use on a tax return. Unless the ITIN is renewed by the taxpayer.
Also, any ITINs issued before the year 2013, which were used on a federal tax return in the last three years, are due for renewal starting this fall. The IRS is putting in place a rolling renewal schedule that will facilitate the taxpayers through the renewal process.
For taxpayers with an expired ITIN who do not apply for a renewal before filing next year’s returns may face a delay in refunds and may not be eligible for certain tax credits.
Now that you we have explained the most common queries of individuals wanting to get an ITIN, let us elaborate on how we can make the whole process a lot easier for you.
As Certified Acceptance Agents (CAA), we are authorized by the IRS to assist individuals who are in need of an Individual Taxpayers Identification Number or ITIN. Like us, most of the CAAs are qualified accountants and carry out the whole process with experience and professionalism. We can help you out in the following ways
As we have experience in the field and have authorization by the IRS, we will try our best to make the whole process of getting your ITIN as conveniently as possible. Especially, if you are someone without any prior knowledge of the ITINs or why you should be getting one in the first place.
If you would like to know more about the ITIN or have any other related queries, feel free to contact us.