Individual Taxpayer Identification Number (ITIN): Some facts about it and how to apply for one

What is an ITIN?

• An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service. It is a nine-digit number that always begins with the number 9 and has a 7 or 8 in the fourth digit, example 9XX-7X-XXXX.
• IRS issues ITINs to individuals who are required to have a U.S. taxpayer identification number but who do not have, and are not eligible to obtain a Social Security Number (SSN) from the Social Security Administration (SSA).
• ITINs are issued regardless of immigration status because both resident and nonresident aliens may have U.S. tax return and payment responsibilities under the Internal Revenue Code.
• Individuals must have a filing requirement and file a valid federal income tax return to receive an ITIN, unless they meet an exception.

What is an ITIN used for?

• ITINs are for federal tax reporting only, and are not intended to serve any other purpose. An ITIN does not authorize work in the U.S. or provide eligibility for Social Security benefits or the Earned Income Tax Credit. ITINs are not valid identification outside the tax system.
• IRS issues ITINs to help individuals comply with the U.S. tax laws, and to provide a means to efficiently process and account for tax returns and payments for those not eligible for Social Security Numbers.

Who needs an ITIN?

• IRS issues ITINs to foreign nationals and others who have federal tax reporting or filing requirements and do not qualify for SSNs. A non-resident alien individual not eligible for a SSN, who is required to file a U.S. tax return only to claim a refund of tax under the provisions of a U.S. tax treaty, needs an ITIN.
• Examples of individuals who need ITINs include:

1. Non-resident alien filing a U.S. tax return and not eligible for a SSN
2. U.S. resident alien (based on days present in the United States) filing a U.S. tax return and not eligible for a SSN
3. Dependent or spouse of a U.S. citizen/resident alien
4. Dependent or spouse of a non-resident alien visa holder

Are ITINs valid for identification?

• No. ITINs are not valid identification outside the tax system. Since ITINs are strictly for tax processing, IRS does not apply the same standards as agencies that provide genuine identity certification.
• ITIN applicants are not required to apply in person, and IRS does not further validate the authenticity of identity documents. ITINs do not prove identity outside the Federal tax system, and should not be offered or accepted as identification for non-tax purposes.

Are ITINs valid for work purposes?

• No. ITINs are for federal income tax purposes only. Getting an ITIN does not change your immigration status or your right to work in the United States.

REVISED APPLICATION STANDARDS FOR ITINS

What are the revised application standards for ITINs?
Effective immediately, each ITIN applicant must now:

• Apply using the revised Form W-7
  
• Attach a federal income tax return (Form 1040NR) to the Form W-7. Any applicants who meet an exception to the requirement to file a tax return (see the instructions for Form W-7) must provide documentation to support the exception.

Why is IRS revising the ITIN application process?

• The revisions to the ITIN application process will help ensure ITINs are used for their intended tax administration purposes.

What documents are acceptable as proof of identity and foreign status?

• IRS has streamlined the number of documents the agency will accept as proof of identity to obtain an ITIN. There are now 13 acceptable documents.

• An original, or a certified or notarized copy, of an UNEXPIRED passport is the only document that is accepted for both identity and foreign status. If you do not have a passport, you must provide a combination of current documents that contain expiration dates - we accept documents issued within 12 months of the application if no expiration date is normally available. The documents must also show your name and photograph, and support your claim of foreign status.

• IRS will accept certified or notarized copies of a combination (two or more) of the following documents, in lieu of a passport:

1. National identification card (must show photo, name, current address, date of birth, and expiration date)
2. U.S. driver's license
3. Civil birth certificate (required for dependents under 18 years old)
4. Foreign driver's license
5. U.S. state identification card
6. Foreign voter's registration card
7. U.S. military identification card
8. Foreign military identification card
9. Visa
10. U.S. Citizenship and Immigration Services (USCIS) photo identification
11. Medical records (dependents - under 14 years old only)
12. School records (dependents and/or students - under 18 years old - only)

HELP AND INFORMATION

How do I apply for an ITIN?

• Use the latest revision of Form W-7, Application for IRS Individual Taxpayer Identification Number to apply. Attach a valid federal income tax return unless you qualify for an exception, and include your original or certified proof of identity documents. Because you are filing your tax return as an attachment to your ITIN application, you should not mail your return to the address listed in the Form 1040, 1040A or 1040EZ instructions. Instead, send your return, Form W-7 and proof of identity documents to:

Internal Revenue Service
Austin Service Center
ITIN Operation
P.O. Box 149342
Austin, TX 78714-9342

• You may also apply using the services of an IRS-authorized Acceptance or visit an IRS Taxpayer Assistance Center in lieu of mailing your information to the IRS in Austin. TACs in the United States provide in-person help with ITIN applications on a walk-in or appointment basis. Applicants outside the United States should contact an overseas IRS office to find out if that office accepts Form W-7 applications. The IRS's ITIN Unit in Austin issues all numbers by mail.

When should I apply for an ITIN?

• You should complete Form W-7 as soon as you are ready to file your federal income tax return, since you need to attach the return to your application.
• If you meet one of the exceptions and do not need to file a return, submit Form W-7, along with the documents required to meet your purpose for needing an ITIN, as soon as possible after you determine that you are covered by that exception.
• You can apply for an ITIN any time during the year; however, if the tax return you attach to Form W-7 is filed after the return's due date, you may owe interest and/or penalties. You should file your current year return by the April 15 deadline to avoid this.

How and when can I expect to receive my ITIN?

• If you qualify for an ITIN and your application is complete, you will receive a letter from the IRS assigning your tax identification number, usually within four to six weeks. The IRS has changed from an ITIN card to an authorization letter to avoid any possible similarities with a Social Security Number card. Current ITIN holders' cards will not be replaced; they should continue to use the numbers previously issued when they need to supply identifying numbers for tax purposes.
• If you have not received your ITIN or other correspondence six weeks after applying, you may call the IRS to find out the status of your application.

Where can I get help with my ITIN application?

• You may call the IRS toll-free at 1-800-829-1040 for information and help in completing your Form W-7 and your tax return, or to check on the status of your application six weeks after submitting Form W-7.

• Assistance is also available by appointment at IRS Taxpayer Assistance Centers (TACs) in the United States to provide in-person help with ITIN applications on a walk-in or appointment basis. Applicants outside the United States may contact an overseas IRS office to find out if that office accepts Form W-7 applications.

• You may also use the services of an IRS-authorized Acceptance Agent.

What is an Acceptance Agent?

• An Acceptance Agent is an individual, business or organization (college, financial institution, accounting firm, etc.) authorized by IRS to assist individuals in obtaining ITINs. Certifying Acceptance Agents review applicants' documentation, complete a certificate of accuracy, and forward the certificate and application to the IRS for processing. Some Acceptance Agents may charge a fee.

Information up to this point is provided by the US Internal Revenue Service.


The best at last:
Are there any fees associated with the ITIN imposed by the IRS?

• No! The ITIN is issued as part of a regular tax filing. There is no special fee imposed by the IRS to the taxpayer.
• Therefore no one should consider any websites offering IRS forms (e.g. W-7) at absurdly high prices of up to $50! Just be aware, that such forms can be easily downloaded from the IRS website.

Real Experience with the ITIN Application Process

The application process is not that complicated, but the rules must be fulfilled by the requestor. Trying to get around this, should not be considered and may eventually have serious consequences when dealing with the IRS.

• ID checking is strict - no discussion possible!
  

After the initial years of the ITIN processing, which came with rather not so perfect ID checking, IRS has not increased the diligence of its ID document checking. Document requirements must be met! IRS processes mainly two types of applications.

1. A large number of applications are from illegal aliens present in the USA. Those applicants usually use the services of local acceptance agents, who do the checking.
2. Other applications, who are not from illegal aliens in the USA, rely on the direct processing of the IRS, with their ID document checking procedures. As you belong to this group of people, be aware that you will be screened much more as you may not use any local acceptance agent.
   

• present information orderly and clean

In the course of the application it is highly adviable to present all documents in "good shape". Forms should be filled out readable and properly. IRS staff is willing to do a good job, therefore help the IRS person who will process your application! Otherwise longer processing times will happen, and you will have to send a lot of additional mails to them. If possible do not use any handwriting, as this may not be understood at all times. Rather print information with your computer, use the PDF forms that can be filled electronicly and nicely printed.

• be friendly to IRS people, because they are also very friendly to you

Experience shows that most IRS staff is nice and friendly. Some may be a little grumpy, but they know that any new ITIN application may eventually get them additional tax revenues. If you deal with IRS staff on the phone, do no tbe surprised, but they are much more friendly than what your experience is from a local cable company or maybe an airline. Friendliness pays and will expedite the processing of your application! In your letters to IRS you may also give a little person touch by adding "Thank You", this time handwritten, at the end of your letters. It will create a much nicer personal atmosphere that will be highly beneficial for your wish. These simple but efficient rules also apply to other agencies and sometimes even private companies ... :-)