Gokce Tandogdu
ITIN Specialist, itin.net
Yes, an undocumented immigrant can obtain an Individual Taxpayer Identification Number (ITIN). The IRS issues ITINs 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). The primary requirement for obtaining an ITIN is to demonstrate a valid tax purpose or a requirement to file a U.S. tax return. Answering the question of how does an undocumented immigrant get an itin involves understanding the IRS's documentation and application process.
Eligibility for an ITIN
Eligibility for an ITIN is not based on immigration status, but rather on a U.S. tax reporting requirement. This means that if you are a non-resident alien who needs to file a U.S. tax return, or if you are required to withhold U.S. income tax on payments made to another person, you may be eligible for an ITIN. This can include individuals who:
- Are non-resident aliens filing a U.S. tax return.
- Are resident aliens (based on days present in the U.S.) filing a U.S. tax return.
- Are dependents or spouses of U.S. citizens/resident aliens filing a U.S. tax return.
- Are dependents or spouses of non-resident alien visa holders.
- Are beneficiaries of an estate or trust.
- Are participants in a U.S. real property transaction (e.g., selling U.S. property).
- Are required to file a U.S. tax return to claim a tax treaty benefit.
Crucially, having an ITIN does not authorize you to work in the United States. It is solely for tax processing purposes. The IRS does not consider an ITIN as proof of legal status or authorization to work.
What You Need to Apply for an ITIN
To apply for an ITIN, you must complete and submit Form W-7, Application for IRS Individual Taxpayer Identification Number. Along with the W-7, you must provide original documentation or certified copies from the issuing agency that prove your identity and foreign status. The IRS will accept several types of identification, but the most commonly used and recommended are:
- Passport: This is the preferred document as it proves both identity and foreign status. If you submit a passport, it is the only identification document you will need.
- National Identity Card: This must show your name, photograph, current address, date of birth, and expiration date.
- U.S. Driver's License: Must contain your name, photograph, current address, date of birth, and expiration date.
- Birth Certificate: This is acceptable for dependents under 18, but it must be a certified copy and include the name of the applicant, date and place of birth, and parents' names.
- Foreign Driver's License: Must contain your name, photograph, current address, date of birth, and expiration date.
- Foreign Voter's Registration Card: Must contain your name, photograph, current address, date of birth, and expiration date.
- Civil I.D. Card: Must contain your name, photograph, current address, date of birth, and expiration date.
- Visa: Must show your name, nationality, date of birth, expiration date, and entry date into the U.S.
- U.S. State Identification Card: Must contain your name, photograph, current address, date of birth, and expiration date.
If you cannot provide a passport, you will need to submit at least two other forms of identification from the list above. The IRS will verify the authenticity of your documents and return them to you. This can take several weeks. The IRS strongly recommends using documents that show both your name and photograph. If your name has changed from what is on your identification documents, you must provide legal name change documents, such as a marriage certificate or court order.
The Application Process: Step-by-Step
Applying for an ITIN involves several steps. The process is designed to be straightforward but requires careful attention to detail. Here’s a breakdown of how does an undocumented immigrant get an itin:
- Determine Your Need: First, confirm that you have a valid reason for needing an ITIN. This is typically because you are required to file a U.S. tax return (e.g., reporting U.S. source income) or need to comply with specific tax reporting requirements, such as those related to a U.S. business entity. If you are planning to establish a U.S. LLC, you will likely need an ITIN to file Form 5472 if the LLC is a single-member LLC owned by a non-resident alien and has reportable transactions. You may also need an EIN (Employer Identification Number) for your business, which is a separate process.
- Gather Required Documents: Collect your original identification documents or certified copies from the issuing agency. As mentioned, a passport is the easiest option. If you are filing a tax return with your W-7 application, you will need a complete and signed U.S. federal income tax return. If you are not filing a tax return, you must provide documentation that explains why you are exempt from filing but still require an ITIN (e.g., a withholding certificate).
- Complete Form W-7: Fill out the Form W-7 accurately and completely. Ensure all required fields are filled in. Pay close attention to your name, address, and foreign taxpayer identification number (if applicable). The IRS provides detailed instructions for Form W-7 that should be consulted.
- Choose Your Application Method: There are three main ways to submit your Form W-7 and supporting documents:
- Mail: You can mail your completed Form W-7, along with your original identification documents or certified copies, and your U.S. tax return (if applicable) directly to the IRS at the address specified in the Form W-7 instructions. This is the most common method but involves the longest wait times as your documents are mailed back and forth.
- Certified Acceptance Agent (CAA): You can apply through a Certified Acceptance Agent (CAA). These are individuals or entities authorized by the IRS to help applicants complete and submit their W-7 applications. A significant benefit of using a CAA is that they can often verify your original identification documents and send certified copies to the IRS on your behalf, meaning you don't have to mail your originals. This can speed up the process and reduce the risk of losing important documents. itin.net is an authorized CAA, offering a streamlined application process.
- IRS Taxpayer Assistance Center (TAC): Some IRS Taxpayer Assistance Centers offer ITIN application services. You can make an appointment at a TAC to have your documents verified. However, not all TACs provide this service, and availability can be limited. It is essential to call ahead to confirm. You will still need to bring your original identification documents or certified copies.
- Submit Your Application: Submit your application package according to your chosen method. If you are applying because you need to file a tax return, ensure the tax return is complete and signed. The IRS will not process the W-7 without a valid accompanying tax return or documentation explaining an exception.
- Wait for Processing: After submission, the IRS will process your application. This can take time. Once approved, you will receive a notification letter from the IRS, typically Form CP-565, which assigns you your ITIN. This letter is important and should be kept in a safe place.
Cost and Timeline
The IRS does not charge a fee to apply for an ITIN. However, if you use a Certified Acceptance Agent (CAA) service, they may charge a fee for their assistance. The cost varies depending on the agent or service provider.
The timeline for receiving an ITIN can vary significantly. Generally, the IRS processes ITIN applications within 6 to 11 weeks from the date of submission. This timeframe can be longer during peak tax seasons (January to April) or if there are errors or missing documentation in your application. If you are mailing your application directly to the IRS, you should factor in the time it takes for your documents to be mailed to you and back. Using a CAA can sometimes expedite the verification process, but the IRS processing time itself remains the same. It is advisable to apply well in advance of any tax filing deadlines.
Common Mistakes to Avoid
Several common mistakes can lead to delays or rejection of your ITIN application. Being aware of these can help ensure a smoother process:
- Incomplete or Inaccurate Form W-7: Missing information, incorrect names, or errors in your personal details can cause delays. Double-check all fields against your identification documents.
- Incorrect or Missing Identification Documents: Not providing the required original documents or certified copies from the issuing agency is a frequent issue. Using expired documents or documents that do not meet IRS requirements will lead to rejection.
- Failure to Include a U.S. Tax Return: For most applicants, a complete and signed federal income tax return must be submitted with the W-7. If you are applying for an exception, ensure you provide the correct supporting documentation explaining that exception.
- Not Verifying Document Requirements: If you are not submitting a passport, you must submit at least two other forms of identification. Ensure these documents meet all the IRS criteria (e.g., showing name, photo, address, DOB, expiration).
- Sending Photocopies Instead of Originals or Certified Copies: The IRS requires either original documents (which will be returned) or certified copies from the issuing agency. Photocopies are generally not accepted unless certified by the issuing agency.
- Not Updating Address: If you move after submitting your application, the IRS may not be able to send your ITIN assignment letter. Ensure your mailing address is current.
What Happens After You Get Your ITIN?
Once your ITIN application is approved, you will receive a letter from the IRS, typically Form CP-565, assigning you your unique ITIN. This number is permanent and does not expire, though it may be deactivated if not used on a tax return for three consecutive years.
Your ITIN is crucial for filing your U.S. federal income tax returns. You will use this number on all tax forms you submit to the IRS. If you are an individual who has established a U.S. LLC as a non-resident alien, you will likely need to use your ITIN for filing Form 5472 annually, to report transactions between the LLC and yourself, and potentially for other tax-related purposes. For businesses, obtaining an EIN is usually the next step, distinct from the ITIN process.
If you are a non-resident alien earning income in the U.S. or have other U.S. tax obligations, you must file a tax return annually using your ITIN. If you are also opening a U.S. bank account, some institutions may require an ITIN (or SSN) for account opening, although this is becoming less common for certain fintech services.
Renewing Your ITIN
ITINs issued before 2013 have been subject to a renewal requirement. The IRS has been phasing in a renewal process based on the middle digits of the ITIN. If your ITIN has not been used on a federal tax return for three consecutive years, it will be deactivated. You will need to renew it to continue filing U.S. tax returns. The renewal process is similar to the initial application, requiring a new Form W-7 and updated identification documents. The IRS will notify you if your ITIN is due for renewal. It is important to keep your contact information updated with the IRS.
Seeking Assistance
Navigating the ITIN application process, especially for undocumented immigrants, can be complex. While the IRS provides resources, errors can lead to significant delays. Certified Acceptance Agents (CAAs) are trained by the IRS to assist with the W-7 application. They can help ensure your application is complete and accurate, and crucially, they can verify your original identification documents, eliminating the need to mail them to the IRS. This service is invaluable for protecting your sensitive personal documents. itin.net offers these services to help individuals seeking an ITIN. For complex tax situations, or if you are unsure about your U.S. tax obligations, consulting with a qualified tax professional or an immigration attorney is highly recommended. They can provide personalized advice based on your specific circumstances and ensure compliance with U.S. tax laws.
Understanding how does an undocumented immigrant get an itin requires a clear grasp of the IRS's requirements and procedures. By carefully preparing your documentation and completing the Form W-7 accurately, you can successfully obtain an ITIN for your U.S. tax purposes.