Gokce Tandogdu
ITIN Specialist, itin.net
You can obtain a new Individual Taxpayer Identification Number (ITIN) by filing Form W-7, Application for IRS Individual Taxpayer Identification Number. This form is used by individuals who are not eligible for a Social Security number (SSN) but need a U.S. taxpayer identification number for tax purposes.
Who Needs an ITIN?
An ITIN is required for certain non-resident aliens, resident aliens, and other individuals who have U.S. tax reporting or filing requirements but are not eligible for an SSN. This includes:
- Non-resident aliens filing a U.S. federal tax return.
- Resident aliens filing a U.S. federal tax return.
- Dependents or spouse of a U.S. citizen or resident alien.
- Dependents or spouse of a non-resident alien U.S. visa holder.
- Students, professors, or researchers filing a U.S. federal tax return or claiming a tax treaty benefit.
You may also need an ITIN if you are required to file a U.S. tax return but cannot obtain an SSN. This often applies to individuals forming a U.S. business, such as a U.S. LLC, or those needing to open a U.S. bank account that requires a U.S. taxpayer identification number. The process for how to get a new itin is standardized, but requires careful attention to detail.
Eligibility Requirements for an ITIN
To be eligible for an ITIN, you must have a U.S. tax filing or reporting requirement. This is the primary condition. Simply wanting an ITIN for identification purposes is not sufficient grounds for application. The IRS uses ITINs to track individuals who owe U.S. taxes but cannot get an SSN. Common reasons for needing an ITIN include:
- Filing a U.S. tax return: This is the most common reason. If you earn U.S. source income and are required to file a U.S. tax return (e.g., Form 1040-NR for non-residents), you likely need an ITIN.
- Claiming tax treaty benefits: If you are a non-resident alien who is eligible for benefits under a U.S. tax treaty, you may need an ITIN to claim those benefits, even if you don't have a filing requirement.
- Withholding on U.S. income: If you receive certain types of U.S. income that are subject to U.S. tax withholding, and the withholding agent requires a taxpayer identification number, you will need an ITIN.
- Third-party information reporting: In some cases, third parties may be required to report certain payments made to you to the IRS. If you are not a U.S. citizen or resident alien and do not have an SSN, you may need an ITIN for this reporting.
Documents Required for an ITIN Application
To apply for an ITIN, you must submit Form W-7 along with original or certified copies of specific supporting documents. The primary document required is proof of your identity and foreign status. You must provide one of the following:
- Original or certified copy of your passport: This is the most commonly used and preferred document because it proves both identity and foreign status.
- Other acceptable identity documents: If you do not have a passport, you can submit a combination of other documents that, together, prove both your identity and foreign status. These can include:
- National identity card (must show name, photograph, current address, date of birth, and expiration date).
- U.S. state driver's license.
- Civil birth certificate (for dependents under 18).
- Foreign driver's license.
- Foreign military identification card.
- National identification card issued by a foreign country.
- U.S. state identification card.
- Foreign voter's registration card.
- Visa.
- U.S. Citizenship and Immigration Services (USCIS) photo identification.
- American Indian tribal identification card.
- Medical records (dependents under 6).
- School records (dependents under 18).
In addition to proof of identity and foreign status, you must also submit documentation that supports your taxpayer identification number need. This typically means:
- A U.S. federal income tax return: This should be the tax return that necessitates your ITIN. If you are applying for an ITIN for yourself, you will attach your own tax return. If you are applying for a dependent, you will attach the tax return of the person claiming the dependent.
- A justification letter: In some limited cases, you may be able to submit a letter explaining why you need an ITIN, especially if you are applying for treaty benefits. However, an actual tax return is the most common and reliable documentation.
It is crucial that the name and other identifying information on your Form W-7 exactly match the information on your supporting identification documents and your tax return.
How to Apply for an ITIN: Step-by-Step
There are three main ways to submit your Form W-7 application and supporting documentation to the IRS:
Mail your application directly to the IRS: You can mail your completed Form W-7, along with your original or certified copies of supporting documents and your U.S. federal income tax return, to the IRS address listed in the Form W-7 instructions. Be aware that the IRS will keep your original documents until your ITIN application is processed, which can take several weeks. This is a common method for those who do not need their original documents returned immediately.
Apply through a Certified Acceptance Agent (CAA): This is often the most convenient method. Certified Acceptance Agents are individuals or entities authorized by the IRS to help taxpayers apply for ITINs. They can review your application and supporting documents, verify your original identification documents, and forward your application to the IRS on your behalf. The key benefit of using a CAA is that they can authenticate your original identification documents. This means you do not have to mail your original passport or other vital documents to the IRS. Instead, the CAA will send copies of your documents to the IRS, and you will get your originals back immediately. Some CAAs, like itin.net, offer remote services to assist individuals worldwide.
Apply in person at an IRS Taxpayer Assistance Center (TAC): Some IRS TACs offer ITIN application services by appointment. You can make an appointment to bring your Form W-7, tax return, and original identification documents to the TAC. The IRS staff at the TAC will review your documents and forward your application to the ITIN processing center. However, not all TACs provide this service, and appointments can be difficult to secure.
Regardless of the method chosen, ensure all sections of Form W-7 are completed accurately and legibly. Any missing information or errors can delay the processing of your application.
Processing Times and Fees
The IRS does not charge a fee to apply for an ITIN. However, if you choose to use a Certified Acceptance Agent (CAA) for assistance, they may charge a fee for their services. The cost of using a CAA can vary but typically ranges from $50 to $150, depending on the agent and the complexity of your application.
Processing times for ITIN applications can vary significantly. Generally, you can expect the IRS to process your application within 6 to 11 weeks from the date it is received. However, during peak tax seasons or periods of high application volume, processing times can be longer. The IRS will mail your ITIN directly to you once your application is approved. You will receive a notice from the IRS with your assigned ITIN, typically Form CP-565, ITIN Assignment Letter.
If you are mailing your original identification documents to the IRS, factor in the time it will take for them to be returned to you after processing. This can add several more weeks to the overall timeline.
Common Mistakes and How to Avoid Them
Applying for an ITIN can be straightforward, but several common mistakes can lead to delays or rejections:
- Incomplete or inaccurate Form W-7: Ensure all fields are filled out correctly. Missing information, such as your foreign address or signature, is a common reason for rejection.
- Incorrect or missing supporting documents: Verify that you are submitting the correct identification documents and proof of your tax filing requirement. Ensure that names and dates on all documents match precisely.
- Not submitting an actual tax return: Unless you are applying solely for treaty benefits with a specific justification letter, you must include a complete U.S. federal income tax return with your Form W-7. If you are applying for yourself, attach your own return; if for a dependent, attach the return of the person claiming the dependent.
- Submitting photocopies instead of originals or certified copies: If you are not using a CAA, you must send original or certified copies of your identification documents. The IRS will return original documents, but photocopies are not acceptable.
- Mismatched information: Ensure the name and identifying information on your Form W-7 are identical to those on your identification documents and tax return. Even minor discrepancies can cause issues.
- Mailing to the wrong address: Always use the most current IRS address for ITIN applications, which can be found in the Form W-7 instructions.
Reviewing the Form W-7 instructions thoroughly and double-checking all submitted materials before sending them can prevent these common errors. Using a Certified Acceptance Agent can also significantly reduce the risk of mistakes.
What Happens After You Receive Your ITIN?
Once you receive your ITIN from the IRS (usually via Form CP-565), you can use it for all U.S. federal tax purposes. This includes filing future tax returns, claiming tax benefits, and fulfilling any withholding or reporting requirements. Your ITIN is a permanent number, but it does not mean you are authorized to work in the United States.
If you were issued an ITIN solely to file a tax return and your circumstances change such that you become eligible for an SSN, you should apply for an SSN and your ITIN will be invalid. You will then use your SSN for all tax purposes going forward.
ITIN Renewal
ITINs that have not been used on a federal tax return for three consecutive tax years are subject to expiration. Additionally, the IRS may require ITINs to be renewed periodically. If your ITIN expires, you will need to file Form W-7 again to have it renewed. The IRS will generally notify you if your ITIN is set to expire. It is important to keep your contact information with the IRS updated.
Other Tax Obligations
If you obtained an ITIN to form a U.S. LLC and operate a business, you will have other tax obligations. These may include filing Form 1040-NR annually, and if your LLC is a single-member LLC owned by a foreign person, you may need to file Form 5472, Information Return of a U.S. Corporation With a Foreign Related Party, along with a Form 1120 or 1040-NR.
How to Get Professional Help
While you can apply for an ITIN yourself, the process can be complex, especially if you are unfamiliar with U.S. tax procedures or if your situation involves multiple tax filings or treaty claims. For many individuals, using a Certified Acceptance Agent (CAA) is the most reliable and convenient way to obtain an ITIN. CAAs are trained by the IRS to assist with ITIN applications and can verify your identity documents, preventing you from having to mail them. This significantly reduces the risk of loss or delay.
Services like itin.net specialize in assisting non-residents and foreign nationals with their ITIN applications, ensuring accuracy and efficiency. They can guide you through the document requirements and submission process. You can learn more about our ITIN application service here.
If your tax situation is complex, involves significant U.S. investments, or requires advanced tax planning, it is advisable to consult with a qualified U.S. tax professional or an enrolled agent. They can provide personalized advice and ensure all your U.S. tax obligations are met correctly. For information on obtaining an EIN for your business, you can refer to our EIN application service. If you are considering setting up a U.S. LLC, we also offer resources on U.S. LLC formation.