Gokce Tandogdu
ITIN Specialist, itin.net
No, you cannot perform a background check using only an ITIN (Individual Taxpayer Identification Number).
An ITIN is issued by the Internal Revenue Service (IRS) solely for tax reporting purposes. It is not a form of identification that can be used to verify someone's identity for background checks, employment screening, or creditworthiness assessments. The primary function of an ITIN is to ensure that all U.S. taxpayers who are not eligible for a Social Security Number (SSN) can file their tax returns and are properly accounted for by the IRS. When people search "can you do a background check with an itin number," they are often misunderstanding the purpose and limitations of this unique taxpayer identifier.
What is an ITIN?
An ITIN is a nine-digit number that begins with the number 9 and has a 7 or 8 in the fourth digit (e.g., 9XX-7X-XXXX or 9XX-8X-XXXX). It is assigned to individuals who are required to have a U.S. taxpayer identification number but do not have, and are not eligible to obtain, a Social Security Number (SSN). This includes resident and non-resident aliens, their spouses, and dependents who cannot get an SSN, as well as children of U.S. citizens and resident aliens who are not eligible for an SSN.
The ITIN is used for federal tax purposes only. It allows the IRS to track tax filings and process tax returns accurately for individuals who are not U.S. citizens or permanent residents but have U.S. tax obligations. Examples include:
- Non-resident aliens earning U.S. source income who need to file a U.S. tax return (e.g., Form 1040-NR).
- Individuals claiming tax treaty benefits.
- Dependents or spouses of U.S. citizens or resident aliens who are not eligible for an SSN.
Why an ITIN Cannot Be Used for Background Checks
Background checks typically require verifiable forms of identification that confirm a person's identity, address, and sometimes their criminal or financial history. These checks usually involve providing or verifying details such as a full legal name, date of birth, current and previous addresses, and often a Social Security Number or other government-issued identification number.
An ITIN lacks the necessary attributes for these verification processes:
- No Identity Verification: The IRS issues an ITIN based on an applicant's need for a tax processing number, not as a comprehensive identity document. While the application process for an ITIN (using Form W-7) requires submission of original or certified copies of identification documents, the ITIN itself does not serve as a primary or secondary identification document for other purposes.
- Limited Data: An ITIN is primarily linked to tax filings. It does not inherently contain or link to the broad range of personal data (like driver's license numbers, passport details, or criminal records) that are crucial for conducting a thorough background check.
- Privacy and Security: The IRS maintains strict privacy and security protocols for taxpayer information. ITINs are not designed to be publicly accessible or to be used in systems that require broad data access for identity verification.
In essence, an ITIN is a tax ID, not a personal identification document like a passport, driver's license, or Social Security Number. Using an ITIN for purposes outside of tax administration would be a misuse of the number and would not yield reliable results for background screening.
What an ITIN Can Be Used For
While an ITIN cannot be used for background checks, it is essential for several other U.S. financial and tax-related activities. Understanding these uses can clarify why individuals obtain an ITIN.
Tax Filing
This is the primary purpose of an ITIN. If you are required to file a U.S. tax return and are not eligible for an SSN, you must obtain an ITIN. This includes:
- Filing individual income tax returns (e.g., Form 1040-NR).
- Filing informational returns (e.g., Form 5472 for reporting transactions with a foreign-owned U.S. disregarded entity).
- Claiming tax treaty benefits.
Opening Certain Bank Accounts
While not universally accepted, some U.S. banks and financial institutions may allow non-residents to open a U.S. bank account using an ITIN, especially if they have a U.S. tax filing requirement. This is often a critical step for non-residents looking to establish a U.S. business presence. However, many institutions, particularly those that handle significant international transactions or focus on business accounts, may require an EIN (Employer Identification Number) or an SSN. If you are planning to open a U.S. bank account, researching requirements for specific banks or financial services like Mercury, Relay, or Brex is advisable. These accounts can be crucial for managing business finances, especially when forming a U.S. LLC.
Obtaining Certain Licenses and Permits
In some limited cases, an ITIN might be used to obtain certain state or local licenses or permits, particularly if those are tied to tax registration or specific business activities. However, this is not a common use and depends heavily on the specific regulations of the issuing authority.
Applying for an EIN
An ITIN can be used by individuals to apply for an Employer Identification Number (EIN), also known as a Federal Tax Identification Number. An EIN is required for most businesses, including sole proprietorships with employees, partnerships, and corporations, and is often necessary for opening business bank accounts or conducting business activities. You can apply for an EIN using Form SS-4. If you are forming a U.S. LLC, obtaining an EIN is typically a necessary step. The application process for an EIN can be done online, by mail, or by fax, and an ITIN can be used as the responsible party's identification number if they do not have an SSN.
Mortgage Applications
Some lenders may accept an ITIN as a form of identification for mortgage applications, especially for non-resident aliens purchasing property in the U.S. This is not guaranteed and depends on the lender's policies and risk assessment. Often, a significant down payment and robust documentation of foreign income and assets will be required.
How to Obtain an ITIN
To obtain an ITIN, you must file Form W-7, Application for IRS Individual Taxpayer Identification Number, along with the required original or certified copies of identification documents and a federal tax return (unless an exception applies). The identification documents must prove identity and foreign status. Common documents include passports, national identity cards, and birth certificates.
You can submit your Form W-7 application in one of three ways:
- Mail: Send your application and supporting documents to the IRS address listed in the Form W-7 instructions. The IRS will mail your original documents back to you. This process can take several weeks.
- IRS Taxpayer Assistance Center (TAC): Schedule an appointment at a designated IRS TAC to have your documents verified. They will return your original documents to you on the same day.
- Certified Acceptance Agent (CAA): Apply through a Certified Acceptance Agent. CAAs are individuals or entities (like itin.net) authorized by the IRS to help taxpayers apply for ITINs. They can verify your original identification documents and forward your application to the IRS, often expediting the process and eliminating the need to mail your original documents to the IRS. This is a popular option for individuals who prefer not to send their passports or other vital documents through the mail.
What Happens After You Get an ITIN?
Once you receive your ITIN (typically via an IRS notice, CP-565), you can use it for the tax year for which you applied. It is important to keep your ITIN confidential and secure, just like any other important personal identification number.
Tax Filing Obligations
Your ITIN signifies a U.S. tax obligation. You must file the required U.S. tax returns annually. Failure to do so can lead to penalties and interest. For instance, if you are operating a U.S. LLC and are a foreign owner, you will likely need to file Form 5472 annually, even if there were no transactions during the year, to avoid significant penalties. This form requires reporting by the U.S. entity, but the responsible party (often the foreign owner with an ITIN) must ensure it is filed. The IRS may issue notices such as CP-48 for failure to file required returns.
ITIN Renewal
ITINs do not expire automatically. However, the IRS has designated certain ITINs for renewal. If your ITIN begins with the digits 72 or 73, or if it has not been used on a federal tax return for three consecutive tax years, it may need to be renewed. The renewal process is similar to the initial application, requiring Form W-7 and updated identification documents. The IRS will typically notify taxpayers if their ITIN requires renewal.
Other U.S. Financial Activities
With an ITIN, you can proceed with other financial activities for which it is applicable, such as applying for an EIN to form a business, or potentially opening a U.S. bank account. These steps are often sequential for individuals looking to establish a robust financial presence in the United States. Having an ITIN is frequently the first step for non-residents wanting to engage in U.S. business.
Common Misconceptions
Several common misunderstandings surround ITINs, and clarifying them is important:
- ITIN vs. SSN: An ITIN is NOT a Social Security Number. SSNs are issued by the Social Security Administration and are used for employment, social security benefits, and a wide range of identification purposes. ITINs are exclusively for federal tax processing.
- ITIN as Proof of Status: An ITIN does not grant immigration status, work authorization, or legal residency in the U.S. It is purely a tax processing number.
- Eligibility for ITIN: You cannot get an ITIN just because you want one or because you plan to do business in the U.S. You must have a valid tax filing requirement or meet specific exceptions outlined by the IRS.
Conclusion
In summary, the answer to "can you do a background check with an itin number?" is a definitive no. An ITIN is a tax processing tool, not an identification document suitable for background checks, credit reports, or employment screening. While crucial for tax compliance and enabling certain financial activities for non-residents, its utility is confined to the realm of U.S. taxation and related financial transactions. If you need to perform a background check, you will require official government-issued identification documents like passports, driver's licenses, or Social Security Numbers, depending on the jurisdiction and the specific requirements of the background check service. For assistance with obtaining an ITIN, exploring options for U.S. LLC formation, or applying for an EIN, resources like itin.net can provide guidance and support through the application processes.