1) What is ITIN?
ITIN number is the Individual Taxpayer Identification Number. And, the Individual Taxpayer Identification Number is a number provided by the IRS for your tax filings. It consists of nine digits in total and always starts with the number 9. This number is assigned to individuals who are taxpayers but do not or cannot have a Social Security Number (SSN). It does not matter whether taxpayers live inside or outside the USA. Regardless of immigration status; both US residents and non-US residents may have tax responsibilities in the US. In order to obtain this number, individuals must have a tax liability in the United States. And, individuals must file a federal income tax return.
2) Why Do I Need an ITIN?
ITIN is a must if you have an obligation to make federal tax payments. Or, if you need to file a federal return.
So, you will need an ITIN if one of the following criteria describes you;
- A non-US foreigner who must file a US tax return,
- a foreigner who has resided in the United States for a certain period of time and is filing a tax return,
- dependents (relatives) of a US citizen,
- dependent or spouse of a non-US visa holder,
- foreign students and professors or researchers who need to file tax returns.
In addition, foreigners who are
- doing business in the USA,
- dealing with E-commerce
requires an ITIN to open a Commercial Paypal Account.
3) When Do I Need an ITIN?
When you need to file a tax return for ITIN, you can apply at any time. So, there is no need for a declaration form or it has no time or season. The IRS (Internal Revenue Service) issues an ITIN for individuals to comply with US tax laws if they do not have an SSN (social security number). This number facilitates foreigners can pay their taxes individually. Regardless of their immigration status, whether they reside in the United States or not. Foreign individuals may have to file with the IRS for tax purposes for any reason. So, They mandatorily need ITIN for tax purposes. The ITIN number serves no purpose other than federal taxation.
4) Can ITIN renew?
The short answer to this question is, yes, it can be requested to be renewed periodically. Current ITIN holders who did not file a tax return in three consecutive years need to renew their ITIN. There can be an additional notice from IRS. If the notice asks ITIN holders with specific ## ending numbers, are need to renew their ITIN. Renewal requires filing a tax return for those expired ITIN renewals. Using an expired ITIN on a US tax return counts as timely filing, but there will be no refunds.
5) False Facts About ITIN
Having an ITIN does not mean;
- you can obtain a work permit,
- get a residence permit,
- benefit from social security,
- benefits or qualify for income tax credits.
ITIN does not provide these privileges.
6) How Can I Obtain ITIN?
In order to obtain an ITIN, you must send the IRS the authenticity of your unexpired passport. you must prove that your identity is truly yours. It was acceptable when you fill out the W-7 form and send a notarized copy of the passport to the IRS. But, It is no longer accepted. In addition, attach a document from the consulate stating that you are a foreigner in the same postal envelope. At least, this is how the current date (as of April 20XX) is stated on the IRS website.
7) How to Apply for an ITIN?
There are 3 application options to get an ITIN from the IRS, let’s evaluate these options one by one.
7.1) Applying by Mail
You can prepare a mail consisting of;
- A completed W-7 form,
- An original passport that hasn’t expired and,
- A proof that you’re a foreigner which you can get from the consulate.
You can mail them all to the address below:
Internal Revenue Service
Austin Service Center
P.O. Box 149342
Austin, TX 78714-9342
All original documents, including the passport you submitted during the application, return to you within 60 days. The IRS advises that documents return to the address on Form W-7 following the processing of your application. If the documents do not reach you within 60 days, you can call the IRS ITIN operation center by phone.
7.2) Hiring a Professional
The above option is a free method that costs only a postage fee but is not the most common. There are also authorized organizations by the IRS to provide ITIN. If you do not want to manage this complex and challenging process yourself, you can apply to intermediary firms. The advantages are;
- the Confirmation will reach you faster and,
- no need to mail the original passport to the USA.
In addition, the standard process (which is 16-weeks long) results in a shorter time when it is applied by professionals.
7.3) Applying Physically
You can also get the ITIN in person when you visit the USA by making an appointment with the IRS. In this way, there will be no need for cases such as submitting a foreign status document and passport. The IRS mail the confirmation to the postal address you specified when the IRS completed your ITIN application.
8) Where Can I Find Information About My Application?
If you are in the USA, you can contact us at 1-302-310-2176. If you are outside the United States, you can contact us via our communication channels and get information about your process.