Gokce Tandogdu
ITIN Specialist, itin.net
Yes, undocumented individuals can obtain an Individual Taxpayer Identification Number (ITIN) by applying directly to the IRS or through an authorized IRS Certified Acceptance Agent (CAA). The process is the same for undocumented individuals as it is for other eligible applicants who do not have and cannot get a Social Security number (SSN). The core requirements involve demonstrating a need for an ITIN for U.S. tax purposes and providing valid identification.
Eligibility for an ITIN
An ITIN is issued by the Internal Revenue Service (IRS) to help individuals who are required to have 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 or spouses of U.S. citizens/resident aliens, and individuals who are otherwise required to have a U.S. taxpayer identification number for tax purposes. The IRS does not ask about immigration status when processing an ITIN application. Therefore, undocumented status alone does not prevent an individual from obtaining an ITIN if they meet the other eligibility criteria and have a valid tax-related reason.
Reasons for Needing an ITIN
To apply for an ITIN, you must have a U.S. tax filing or reporting requirement. Common reasons include:
- Filing a U.S. federal tax return (e.g., Form 1040-NR, U.S. Nonresident Alien Income Tax Return, or Form 1040) when you are not eligible for an SSN. This is the most common reason for undocumented individuals to seek an ITIN. For example, if you have U.S. source income or are claiming treaty benefits, you may need to file a tax return.
- Withholding of tax on U.S. source income when you are not eligible for an SSN.
- Filing a U.S. tax return to claim treaty benefits.
- Filing a U.S. tax return to claim an exemption from tax under a U.S. tax treaty.
- Establishing U.S. residency for tax purposes (though this scenario is less common for undocumented individuals).
- U.S. business owners who are not U.S. citizens or resident aliens and are required to file certain informational returns. For instance, if you own a U.S. LLC, you might need an ITIN if you are the sole member and not a U.S. citizen, and are required to file Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business. This is a critical step for compliance. If you are forming a U.S. LLC, understanding your tax obligations early is key.
- Opening a U.S. bank account. While many banks may ask for an SSN, some financial institutions do accept an ITIN as a valid form of identification for opening accounts, especially for non-resident aliens. This can be a significant step for managing finances related to U.S. activities. Services like Mercury, Relay, or Brex may have specific requirements, but an ITIN can sometimes be a part of the acceptable documentation.
- Applying for an Employer Identification Number (EIN). While an ITIN holder can apply for an EIN (using Form SS-4), the EIN itself is for business entities, not individuals. An ITIN is for personal tax identification.
If your reason for needing an ITIN is not tax-related, you will not be issued one. The IRS is strict about the tax-purpose requirement.
What You Need to Apply
The application for an ITIN is made using Form W-7, Application for IRS Individual Taxpayer Identification Number. You must complete this form accurately and submit it with original or certified copies of required documentation. The primary documents you need are:
Proof of Identity: You must provide a valid, unexpired government-issued identification document that shows your name, photograph, current address, and date of birth. The most commonly accepted documents are:
- Passport (foreign)
- National Identity Card (must show photo, name, address, DOB, expiration date)
- U.S. Driver's License
- State-issued ID card
- Foreign Driver's License
- U.S. Military ID card
- Foreign Military ID card
- U.S. Visa
- Civil Birth Certificate (for individuals under 18)
- Medical Records (dependent only)
- School Records (dependent only)
You must submit one of these documents. If the document does not show a U.S. address, you must also provide a current U.S. address (e.g., a utility bill or bank statement) as proof of residency. If you are applying from outside the U.S. and the identification document does not list a U.S. address, the address listed on the document will be used.
Proof of Foreign Status: You must also provide documentation that proves you are a non-resident alien or a foreign national. This can be the same document used for identity verification if it establishes foreign status (like a foreign passport), or a separate document. The IRS provides a list of acceptable documents for proving foreign status on the Form W-7 instructions. Examples include:
- Foreign passport
- Visa
- Birth certificate (if it shows foreign birth and nationality)
- National identification card
You generally need to provide two documents to prove both identity and foreign status, unless one document (like a foreign passport) satisfies both requirements.
The Tax Return or Documenting Tax Liability: You must submit your U.S. federal income tax return for the year you are applying for the ITIN, or other documentation that shows a U.S. tax liability. This is the most critical part of the application. If you are applying because you need an ITIN to file a tax return, you will attach the completed tax return to your Form W-7. If you are applying for other tax-related reasons, you will need to provide documentation supporting that specific need. For example, if you are claiming treaty benefits, you might need to attach specific tax forms or statements related to that claim.
It is important to submit original documents or certified copies from the issuing agency. If you send original documents, the IRS will return them to you, but this can take time. Certified copies are often preferred as they can be retained by the IRS without delaying your application while your original documents are returned.
How to Apply for an ITIN
There are three primary ways to submit your Form W-7 application:
Apply by Mail: You can mail your completed Form W-7, along with your original or certified copies of supporting documents and your tax return, directly to the IRS at the following address: Internal Revenue Service Austin, TX 73301-0009 USA
This is the most common method for individuals applying directly. However, it has the longest processing time, and you must send original documents, which can be a concern for many applicants. The IRS will return your original documents after processing.
Apply Through a Certified Acceptance Agent (CAA): A CAA is an individual or business (like itin.net) that has been approved by the IRS to help taxpayers apply for ITINs. CAAs can verify your original identification documents and forward your application to the IRS. The significant advantage of using a CAA is that you do not have to mail your original documents to the IRS; the CAA will review them and send certified copies along with your application. This means your original documents are returned to you immediately after verification by the CAA. This option is often faster and more secure for applicants. itin.net is a proud partner and Certified Acceptance Agent for the IRS, assisting individuals in this process.
Apply at an IRS Taxpayer Assistance Center (TAC): Some IRS TACs offer ITIN application services by appointment. You can call the IRS to schedule an appointment and bring your original documents, tax return, and completed Form W-7 to the TAC. However, not all TACs provide this service, and availability can be limited. You must call to verify if the TAC nearest to you offers ITIN application assistance and to schedule an appointment. This method also allows you to keep your original documents.
Regardless of the method chosen, accuracy on Form W-7 is paramount. Errors can lead to delays or rejection of your application.
Processing Time and Costs
The IRS does not charge a fee to apply for an ITIN. However, if you use a third-party service like a Certified Acceptance Agent (CAA), they may charge a fee for their services. The cost for a CAA can vary, but it is typically a few hundred dollars. itin.net offers transparent pricing for its ITIN application assistance.
Processing times can vary significantly:
- Mail applications: Can take anywhere from 7 to 14 weeks, sometimes longer during peak tax seasons.
- CAA applications: Are generally processed faster, often within 4 to 10 weeks, because the CAA ensures the application is complete and accurate before submission, reducing IRS review delays.
- TAC applications: Can also be faster, as the verification is done on the spot, but the overall IRS processing still applies.
These times are estimates and can fluctuate based on IRS workload and the complexity of the application. The IRS issues ITINs year-round, but processing can be slower during the busy tax filing season (January through April).
Once your application is approved, you will receive an official notification letter from the IRS, typically IRS Notice CP-565, Assignment of Taxpayer Identification Number, which will contain your assigned ITIN. It is crucial to keep this notice and your ITIN in a safe place.
Common Mistakes to Avoid
Applying for an ITIN involves several steps, and errors can cause significant delays or outright rejection. Here are common mistakes to avoid when applying, especially when considering how to get an itin number for undocumented individuals:
- Incomplete Form W-7: Missing information, especially your foreign address or required signatures, will cause delays. Ensure all fields are filled out correctly.
- Incorrect or Missing Documentation: Failing to provide valid, unexpired identification or proof of foreign status, or submitting photocopies instead of originals or certified copies, are frequent issues. Ensure your documents meet the IRS criteria listed in the Form W-7 instructions.
- Not Submitting a Tax Return: If you are applying because you need to file a tax return, ensure the return is complete, accurate, and attached to your Form W-7. An ITIN is for tax purposes; without a supporting tax filing or other valid tax-related reason, the application will be denied.
- Mailing Original Documents Without Verification: While mailing originals is an option, it carries the risk of loss or damage during transit. Using a CAA mitigates this risk.
- Incorrect Taxpayer Status: Claiming to be a resident alien when you are not, or vice versa, can lead to application denial or future tax problems. Ensure you understand your U.S. tax residency status.
- Failure to Renew: ITINs assigned before 2013 may expire if not used on a federal tax return for three consecutive tax years. Although the IRS has stated that ITINs do not have a fixed expiration date, they can be deactivated if not used. If your ITIN is deactivated, you will need to reapply using a new Form W-7 and supporting documents. Recently, the IRS has been renewing ITINs based on the last two digits of the ITIN itself. Check the IRS website for the latest renewal requirements.
What Happens After You Get Your ITIN?
Once you receive your ITIN, it is essential to use it correctly for all U.S. tax-related matters. This includes filing your annual U.S. tax return, reporting any U.S. income, and claiming any applicable tax treaty benefits. If you were required to file Form 5472 related to a U.S. LLC, you would now use your ITIN for that filing.
Remember that an ITIN is not proof of legal status in the United States. It is solely for tax administration purposes. The IRS uses ITINs to track tax payments and obligations of individuals who are not eligible for an SSN.
If you plan to engage in business activities in the U.S., you may also need an EIN for your business entity. You can apply for an EIN using Form SS-4. While an ITIN holder can apply for an EIN, the EIN identifies the business, not the individual owner.
It is also important to keep your address updated with the IRS. If you move, you should notify the IRS of your new address to ensure you receive important tax notices. If your ITIN expires or is deactivated due to non-use, you will need to go through the application process again to obtain a new one.
Getting Help with Your ITIN Application
Navigating the U.S. tax system and the ITIN application process can be complex, especially for individuals who are undocumented. While you can apply directly to the IRS, many find the process smoother and more secure by utilizing the services of a Certified Acceptance Agent (CAA). CAAs are trained by the IRS to assist with ITIN applications and can verify your original documents, reducing the risk of them being lost in the mail. itin.net offers expert assistance through our CAA services, helping ensure your application is accurate and complete, thereby potentially speeding up the process.
For complex tax situations, such as those involving foreign income, U.S. business ownership (like a U.S. LLC), or specific treaty claims, consulting with a qualified tax professional or an enrolled agent experienced in international tax matters is highly recommended. They can provide personalized advice based on your unique circumstances. You can also find more resources and information on the IRS website or by contacting the IRS directly. For those looking to establish a U.S. business presence, understanding the interplay between ITINs, EINs, and entity formation is crucial. You can learn more about ITINs and related services at / or about EINs at /ein or U.S. LLCs at /llc.
Remember, the IRS does not consider your immigration status when issuing an ITIN. The focus is solely on your need for a U.S. taxpayer identification number for tax administration purposes and your ability to provide the required identity and foreign status documentation.