If you are required to obtain a U.S. taxpayer number but do not have a social security number, you must initiate the ITIN application process. If you are not eligible for a social security number, you will be given a 9-digit tax processing number by the IRS agency.
Tax numbers are given regardless of immigration status because residents or foreigners may have USA declaration or reporting requirements. Unless you have an exempt status, you must file a valid federal income tax return to obtain an ITIN.
What is the ITIN Number Used for in the USA?
You can only use the ITIN number for federal tax reporting matters. This number does not serve any other purpose. The IRS provides an ITIN to help you comply with USA tax laws, to process individual tax returns and accounts efficiently. If you cannot obtain an SSN number for this, they will give you an ITIN number for your tax payments.
You cannot obtain authorization to work in the USA by ITIN application. However, with an ITIN, you can become a partner or owner of a company in the United States. ITIN does not entitle you to social security benefits or earned income tax credits.
Who Provides Services for ITIN Application?
To obtain an ITIN number, you must complete a W-7 form. For this, the relevant agencies provide guidance for filling out the W-7 form and applying for you. In addition, agencies providing services on this subject follow the entire ITIN application process for you.
With each application, the original or US-based notarized copies of the identity documents (eg passport) of the applicants must be sent to the IRS ITIN unit.
If you apply through agencies serving in this field, it is sufficient to send these information and documents to the agency instead of sending your original documents to the IRS. Thus, the process of obtaining the ITIN will run faster. ITIN agency can also apply on your behalf through power of attorney.
What is SSN (Social Security Number)?
Let’s give information about what the SSN number is so that the ITIN application can be better understood. The term social security number (SSN) is a 9-digit number assigned to USA citizens and other residents for the purpose of tracking income and government benefits. Persons living in the USA are required to declare their SSN to the relevant institutions in order to open a bank account, get loans, benefit from government benefits and make large purchases.
With very few exceptions, all USA citizens, permanent residents, and permanent or temporary employed residents have a social security number. SSNs (Social Security Administration) are issued by the social security administration. Even non-USA residents who do not work for the benefit of the business or government agency can have an SSN.
You can apply for a Social Security Number by completing the SS-5 form. This form is used for issues such as obtaining, replacing or correcting the original SSN card. A full list of requirements such as age, identity, and documents proving US citizenship or immigration status is found on the form.
Importance of ITIN Application
The IRS grants the right to ITIN application to foreign nationals who are not eligible for a social security number (SSN) or other individuals who need to file a federal tax filing or filing. Under USA tax provisions, foreigners who only need to file tax returns to obtain a tax refund, but are not eligible for an SSN, are also required to obtain an ITIN.
As a result; if you want to establish a company in the USA and operate without any problems in the eyes of the IRS, you must know the concepts in this content. These concepts, which you will encounter frequently in your commercial activities, identify you or your company and ensure that your transactions are recorded on a Federal and State basis.
In addition, in this content, we talked about what the abbreviations ITIN, SSN mean, what kind of functions they have and why you might need ITIN application.