Gokce Tandogdu
ITIN Specialist, itin.net
An Individual Taxpayer Identification Number (ITIN) does not expire and remains valid for the lifetime of the holder unless it becomes invalid due to non-use. The IRS may invalidate an ITIN if it has not been used on a federal tax return for three consecutive tax years. The primary purpose of an ITIN is to enable individuals who are not eligible for a Social Security Number (SSN) to comply with U.S. tax laws. Therefore, the IRS expects ITINs to be used for tax filing purposes. If you have an ITIN and no longer need it for tax purposes, you generally do not need to take any action. However, if you anticipate needing it again in the future, it is advisable to use it by filing a tax return to keep it active. The question of how long is a ITIN number good for is best answered by understanding the IRS's policy on usage.
ITIN Validity and Non-Use
The IRS issues ITINs to individuals who need a U.S. taxpayer identification number but do not have and are not eligible to obtain an SSN. This includes non-resident aliens filing U.S. tax returns, resident aliens (based on days present in the U.S.) filing U.S. tax returns, dependents, and students. The ITIN itself, as a number, does not have an expiration date. However, the IRS has a policy to discontinue issuing and using ITINs that have not been used on a federal tax return for three consecutive tax years. This policy aims to manage the ITIN system efficiently and ensure that the numbers are actively used for their intended purpose.
IRS Notice CP-48
If the IRS determines that your ITIN has become invalid due to non-use, they will typically notify you by mail. The notice sent is Form CP-48. This notice informs you that your ITIN is no longer valid and that you will need to apply for a new one if you intend to file a federal tax return. The notice will also provide instructions on how to reapply for an ITIN using Form W-7, Application for IRS Individual Taxpayer Identification Number. This reapplication process is essentially the same as applying for an ITIN for the first time.
Exceptions to Invalidation
There are certain circumstances where an ITIN may not be considered invalid even if it has not been used on a tax return for three consecutive years. These exceptions are generally related to situations where the taxpayer is still considered to be actively engaged in U.S. tax compliance or has a valid reason for not filing. For example, if an individual is a dependent or a spouse of a U.S. citizen or resident alien and their filer has a valid reason for not filing a joint return, the ITIN might remain valid. However, these are specific situations, and it is always best to consult the IRS guidelines or a tax professional if you believe your ITIN might be subject to these exceptions.
When You Might Need an ITIN
Individuals typically need an ITIN for several common U.S. tax and financial activities. Understanding these uses can help you determine if your ITIN is still valid or if you need to reapply. The most common reason for needing an ITIN is to file a U.S. federal income tax return (Form 1040-NR for non-residents, or Form 1040 for resident aliens). This is often a requirement for non-residents who have U.S. source income, or for those claiming tax treaty benefits. Beyond tax filing, an ITIN can be necessary for other financial transactions.
Opening a U.S. Bank Account
Many U.S. banks require a taxpayer identification number to open an account. While a Social Security Number is preferred, an ITIN can often be used by non-residents and foreign nationals to open a U.S. bank account. This is particularly true for certain types of accounts or at specific financial institutions that cater to international clients. Having a U.S. bank account can be crucial for managing finances related to U.S. investments, business activities, or personal expenses. Some popular options for non-residents include accounts with institutions like Mercury, Relay, or Brex, which often accept ITINs.
Establishing a U.S. Business Entity
If you are forming a U.S. LLC (Limited Liability Company) or another business entity, you may need a taxpayer identification number. While a U.S. LLC can be formed without an ITIN, you will likely need one to open a business bank account or to file certain tax forms. For instance, if your U.S. LLC has a single member who is a non-resident alien and does not have an SSN, the LLC may be treated as a disregarded entity for U.S. tax purposes, and the owner would use their ITIN on tax forms like Form 5472, Information Return of a U.S. Corporation With a Foreign Related Party. The formation of a U.S. LLC, obtaining an EIN, and opening a bank account are often interconnected steps in establishing a U.S. business presence.
Applying for a U.S. Visa or Other Immigration Benefits
While an ITIN is primarily for tax purposes, there can be indirect connections to immigration. For instance, if an individual is applying for certain benefits or needs to demonstrate U.S. tax compliance as part of an immigration process, an ITIN might be relevant. However, an ITIN does not grant immigration benefits or work authorization. It is strictly a tax processing number.
How to Keep Your ITIN Active
To ensure your ITIN remains valid, the most straightforward method is to use it annually for filing a federal tax return. If you have U.S. source income or are required to file for other reasons, filing your tax return is the best way to keep your ITIN active. This demonstrates to the IRS that the number is still needed and in use.
Filing a Tax Return
When you file your federal income tax return, you must include your ITIN on the appropriate lines of the tax form. For non-resident aliens, this is typically Form 1040-NR. For resident aliens who are not eligible for an SSN, it would be Form 1040. Ensure that all information on your tax return is accurate and complete. Filing on time, or filing an extension, generally keeps the ITIN active. The IRS processes tax returns throughout the year, and using your ITIN on a filed return resets the three-year clock for non-use.
What if You Don't Have U.S. Income?
If you have an ITIN but do not have any U.S. source income and are not otherwise required to file a U.S. tax return, your ITIN may eventually become invalid due to non-use. In such cases, if you later anticipate needing an ITIN for purposes like opening a bank account or establishing a U.S. business, you will need to reapply. The process of reapplying involves submitting a new Form W-7 along with the required documentation to prove your identity and foreign status. This can be done directly with the IRS or through an authorized intermediary.
Reapplying for an ITIN
If your ITIN has been invalidated by the IRS due to non-use, or if you have lost your ITIN documentation (such as Notice CP-565, which is your ITIN assignment letter), you will need to reapply for a new ITIN. The process for reapplying is the same as the initial application. You must complete and submit Form W-7 to the IRS.
Submitting Form W-7
To submit Form W-7, you have a few options. You can mail the completed form, along with original documentation or certified copies of your identification documents, directly to the IRS ITIN Operation in Austin, Texas. Alternatively, you can apply through an IRS-authorized Certified Acceptance Agent (CAA). Using a CAA, like itin.net, can streamline the process because they are authorized to verify your original identification documents and submit them on your behalf, meaning you do not have to mail your originals to the IRS. This can significantly reduce the risk of losing your important documents. Another option is to apply at specific IRS Taxpayer Assistance Centers (TACs) that offer ITIN application services, but appointments are usually required.
Required Documentation for Reapplication
When reapplying for an ITIN, you will need to provide documentation to prove your identity and foreign status. This typically includes:
- Proof of Identity: A valid passport is the most commonly accepted document. If you do not have a passport, other documents like a national identity card, driver's license, or birth certificate may be accepted, often in combination with other supporting documents. All documents must be current and valid.
- Proof of Foreign Status: Your passport also serves as proof of foreign status. If you are not from a country that has a passport, other documents may be required.
Processing Times for New ITINs
Processing times for new ITIN applications can vary depending on the volume of applications the IRS receives. Generally, it can take anywhere from 7 to 11 weeks from the date the IRS receives your complete application. Applying through a Certified Acceptance Agent (CAA) can sometimes expedite the initial review process, as they are trained to ensure applications are complete before submission.
ITIN vs. SSN: Key Differences
It is important to understand that an ITIN is not an SSN. An SSN is issued by the Social Security Administration and is primarily for individuals authorized to work in the United States. An ITIN is issued by the IRS solely for tax purposes and does not grant any work authorization or immigration benefits. While both are taxpayer identification numbers, their issuing agencies, purposes, and eligibility criteria differ significantly. If you become eligible for an SSN, you should stop using your ITIN and use your SSN for all tax and financial purposes going forward.
Conclusion on ITIN Validity
In summary, an ITIN does not expire and is valid for your lifetime. However, the IRS may invalidate it if you do not use it on a federal tax return for three consecutive years. If this happens, you will receive Notice CP-48 and will need to reapply for a new ITIN using Form W-7. To keep your ITIN active, the most reliable method is to file a U.S. federal tax return annually. If you are planning to establish a U.S. business, you may need to secure an EIN (Employer Identification Number) by filing Form SS-4, which is a separate identification number for your business entity and can be applied for through services like itin.net's /ein service. Understanding how long is a ITIN number good for is key to maintaining your U.S. tax compliance and financial planning. If you have questions about your specific situation or need assistance with the ITIN application process, consider consulting with a qualified tax professional or utilizing the services of a Certified Acceptance Agent (CAA).
For more information on ITINs and related services, you can visit the itin.net / service page or explore our /qa section for answers to other common questions.