Gokce Tandogdu
ITIN Specialist, itin.net
You apply for a new Individual Taxpayer Identification Number (ITIN) by submitting Form W-7, Application for IRS Individual Taxpayer Identification Number, along with required identity and foreign status documentation, to the IRS. This process is necessary for non-residents who need a U.S. taxpayer identification number for tax purposes but do not have and are not eligible for a Social Security number (SSN). Understanding how to get a new ITIN card is a critical first step for many foreign nationals engaging with the U.S. tax system, whether for filing tax returns, claiming treaty benefits, or fulfilling other tax obligations.
When You Need an ITIN
An ITIN is required by the IRS for specific tax-related purposes when an SSN is not available. This typically includes:
- Filing a U.S. federal tax return (e.g., Form 1040-NR for non-resident aliens).
- Claiming tax treaty benefits on U.S. source income.
- Fulfilling U.S. tax reporting requirements, such as for a U.S. business. For instance, if you form a U.S. LLC, you may need an ITIN if you are a foreign owner without an SSN and have reporting obligations like those under Form 5472.
- Opening certain U.S. bank accounts, although many banks now accept other forms of identification or require an EIN for business accounts.
- Complying with U.S. tax law when you are not eligible for an SSN.
It is important to note that an ITIN is solely for tax purposes and does not authorize employment in the U.S. or provide eligibility for Social Security benefits.
Eligibility for an ITIN
To be eligible for an ITIN, you must be a foreign national or other alien individual who has U.S. tax reporting or filing requirements and does not have, and is not eligible to obtain, an SSN. Common scenarios include:
- Non-resident aliens who file U.S. tax returns.
- U.S. resident aliens (based on the substantial presence test or green card test) who are not eligible for an SSN.
- Dependents or other individuals included on a U.S. tax return who require a U.S. taxpayer identification number.
- Spouses and dependents of U.S. citizens or resident aliens who are not eligible for an SSN.
- Foreign students, scholars, or exchange visitors (and their spouses/dependents) who are present in the U.S. on an F, J, M, or Q visa and have U.S. tax reporting requirements.
If you are unsure about your eligibility, consulting with a tax professional or reviewing the IRS guidelines for ITIN eligibility is recommended.
Required Documentation for an ITIN Application
To apply for an ITIN, you must provide original or certified copies of specific documents to prove your identity and foreign status. The IRS requires Form W-7 to be submitted with supporting documentation. You have two primary options for submitting your documentation:
- Mail your application directly to the IRS: You can mail your completed Form W-7, along with original or certified copies of your identity and foreign status documents, and a U.S. federal income tax return (unless you qualify for an exception). The IRS will verify your documents and return them to you, typically within 60 days.
- Apply through a Certified Acceptance Agent (CAA): A CAA is an individual or entity authorized by the IRS to help taxpayers apply for ITINs. CAAs can review your original documents and forward your Form W-7 application to the IRS on your behalf. They can also certify your identification documents, meaning you do not have to mail your original passports or birth certificates to the IRS. This is often the preferred method for applicants who do not want to mail original documents. The itin.net service assists clients in this process, connecting them with CAAs.
Regardless of the submission method, you will need:
- Completed Form W-7: Ensure all sections are filled out accurately. Missing information can delay processing.
- Original or Certified Copy of Identity and Foreign Status Documentation: This can be a passport (preferred), national identity card, driver's license, or a foreign military identification card. If you are applying as a dependent, you may also need a birth certificate. If you are applying based on marriage, a marriage certificate may be required. The document must be current and contain your photograph, name, address, date of birth, and signature.
- U.S. Federal Income Tax Return: Most applicants must submit a valid U.S. federal income tax return with their Form W-7. However, there are exceptions, such as for individuals applying to claim tax treaty benefits or those applying for an ITIN for other specific reasons outlined by the IRS.
The ITIN Application Process: Step-by-Step
Applying for a new ITIN involves several key steps. The exact process may vary slightly depending on whether you apply directly to the IRS or through a CAA.
Option 1: Applying Directly to the IRS
- Gather Required Documents: Collect your original or certified copies of identity and foreign status documents, and ensure you have the U.S. federal income tax return you intend to file.
- Complete Form W-7: Fill out the application form accurately and completely. Pay close attention to all required fields, including your name, address, foreign tax identification number (if applicable), and the reason for applying.
- Mail Application Package: Send your completed Form W-7, your original or certified supporting documents, and your U.S. federal income tax return to the IRS address specified in the Form W-7 instructions (usually the Austin, TX Service Center).
- Wait for Processing: The IRS will process your application and mail your ITIN to you. They will also return your original documents. This can take several weeks.
Option 2: Applying Through a Certified Acceptance Agent (CAA)
- Find a CAA: Locate an authorized CAA. Services like itin.net can help you find a CAA near you or one that can assist remotely.
- Schedule an Appointment: Contact the CAA to schedule an appointment. You will typically meet with the CAA in person or virtually.
- Submit Documents to CAA: Bring your original identity and foreign status documents, and your completed Form W-7 and U.S. federal income tax return, to the CAA. The CAA will review your application and verify your original documents.
- CAA Submits Application: The CAA will then submit your application package to the IRS on your behalf. By using a CAA, you avoid mailing your original identification documents.
- Receive ITIN: The IRS will process the application forwarded by the CAA and mail the ITIN directly to you. The CAA will also be notified of your ITIN.
Processing Times and Fees
The IRS does not charge a fee to apply for an ITIN. However, if you use a CAA, they may charge a service fee for their assistance. This fee varies by CAA.
IRS processing times for Form W-7 applications can fluctuate based on the volume of applications received. Generally, it can take 6 to 11 weeks from the date the IRS receives your complete application to receive your ITIN. This timeline can be longer during peak tax seasons.
If you are applying as part of filing a tax return, and the tax return is due before you receive your ITIN, you may need to request an extension of time to file. This is typically done using Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.
Common Mistakes to Avoid
Several common errors can cause delays or rejections of your ITIN application:
- Incomplete Form W-7: Missing information, especially your signature or required fields, is a frequent cause of delays. Ensure every applicable box is filled in.
- Incorrect or Missing Documentation: Not providing the correct type of identification or foreign status document, or failing to provide original or certified copies (unless applying through a CAA who certifies them), will lead to rejection. Passports are the most commonly accepted and preferred document.
- Not Including a Tax Return (When Required): If you do not qualify for an exception, failing to attach a valid U.S. federal income tax return with your Form W-7 is a primary reason for denial. The tax return must be filed for the tax year for which you are claiming benefits or reporting income.
- Outdated Identification: Using expired identity documents will result in your application being rejected.
- Incorrectly Certified Copies: If using a notary public for certification instead of a CAA, ensure they are authorized to certify documents in your jurisdiction. The IRS has specific rules about certified copies.
- Mailing Original Documents to the Wrong Address: If mailing directly to the IRS, ensure you are sending your application to the correct service center as listed in the Form W-7 instructions.
What Happens After You Get Your ITIN?
Once you receive your ITIN, it is assigned to you for life. You will use this number on all future U.S. tax filings. The IRS will also send you a notice, typically CP-565, Notice of ITIN Assignment, confirming your ITIN.
If you are filing a U.S. tax return, you will use your ITIN to file Form 1040-NR or other relevant tax forms. If you are a foreign owner of a U.S. business, such as a U.S. LLC, you will use your ITIN for reporting purposes, including filing Form 5472 and Form 1120 (if applicable).
It is crucial to keep your ITIN information secure. If you lose your ITIN, you can request a replacement notice by writing to the IRS, but it is best to keep the original CP-565 notice in a safe place. You do not need to reapply for a new ITIN unless the IRS specifically instructs you to do so.
ITIN Renewal and Updates
ITINs issued before January 1, 2013, began expiring on a rolling basis. The IRS requires individuals with expiring ITINs to renew them to continue using them for tax filing. The IRS typically notifies taxpayers with expiring ITINs via mail using notices like CP-48, Notice to Renew ITIN.
To renew an ITIN, you generally follow the same process as applying for a new ITIN: submit Form W-7, along with required documentation, and a U.S. federal income tax return. You do not need to submit a new tax return if you are only renewing your ITIN and not filing a tax return for the current year, but you must still provide proof of identity and foreign status. Renewals can also be done via a CAA.
If your personal information changes (e.g., name change due to marriage), you will need to submit Form W-7 with documentation proving the change to update your ITIN record with the IRS. This is not a renewal but an update to your existing ITIN.
Seeking Assistance for Your ITIN Application
Navigating the U.S. tax system can be complex, especially for individuals unfamiliar with its requirements. If you find the process of applying for a new ITIN daunting or want to ensure accuracy, several avenues for assistance exist:
- Certified Acceptance Agents (CAAs): As mentioned, CAAs are IRS-authorized agents who can significantly simplify the application process. They verify your documents, help with the Form W-7, and submit the application to the IRS. This is often the most convenient and secure method for applicants. itin.net provides a pathway to connect with CAAs.
- IRS Taxpayer Assistance Centers (TACs): Some IRS TACs offer ITIN application services. You can make an appointment to apply in person. However, these services can be limited, and it's advisable to check with your local TAC for availability and requirements.
- Tax Professionals: Enrolled Agents (EAs), Certified Public Accountants (CPAs), and other tax professionals experienced with ITIN applications can provide expert guidance and assistance. They can help ensure your application is complete and accurate, and advise on related tax matters.
For foreign nationals planning to establish a U.S. presence, obtaining an ITIN is often just the first step. Many will subsequently need an EIN for business operations or to open a U.S. bank account. Consulting with specialists who understand these interconnected processes can streamline your U.S. business setup and tax compliance.