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 original or certified copies of required identification documents and a valid U.S. federal income tax return. This process is for non-residents, foreign nationals, and others who need a U.S. taxpayer identification number but are not eligible for a Social Security Number (SSN).
Who Needs an ITIN?
An ITIN is necessary for individuals who have U.S. tax obligations but cannot obtain an SSN. This includes:
- Non-resident aliens who are required to file a U.S. federal tax return or are filing a U.S. tax return to claim a treaty benefit.
- U.S. resident aliens (based on days present in the U.S.) who are not eligible for an SSN.
- Dependents or a spouse of a U.S. citizen or resident alien who do not have, and are not eligible to obtain, an SSN.
- Dependents or a spouse of a non-resident alien U.S. visa holder who do not have, and are not eligible to obtain, an SSN.
An ITIN is purely for tax reporting purposes and does not authorize employment in the U.S., provide eligibility for Social Security benefits, or serve as a U.S. identification document for non-immigration purposes.
Eligibility Requirements for an ITIN
You are generally eligible for an ITIN if you have a U.S. tax filing or claiming-a-treaty-benefit requirement and you are not eligible for an SSN. The IRS uses ITINs to track individuals who are required to file U.S. taxes but cannot get an SSN. Common reasons for needing an ITIN include:
- Filing a U.S. federal income tax return (e.g., Form 1040-NR for non-resident aliens).
- Claiming treaty benefits on a U.S. tax return.
- Being a dependent or spouse of a U.S. citizen or resident alien who does not have an SSN.
- Filing U.S. tax returns to report income effectively connected with a U.S. trade or business.
- Filing U.S. tax returns to report income subject to U.S. withholding, even if no U.S. tax is due.
- Filing specific informational returns, such as Form 5472 for reporting transactions with a foreign-owned U.S. corporation (often required for U.S. LLCs owned by foreign individuals).
If you are unsure whether you have a U.S. tax obligation that requires an ITIN, consult with a qualified tax professional.
Required Documentation for an ITIN Application
To apply for an ITIN, you must submit Form W-7 along with the following:
A Valid U.S. Federal Income Tax Return: This is the primary document. You cannot get an ITIN without filing a tax return, unless you qualify for an exception (explained below).
Original or Certified Copies of Identification Documents: You need to prove your identity and foreign status. The IRS accepts several documents, but you must submit proof of both your identity and your foreign status. Acceptable documents include:
- Passport (most commonly used and recommended).
- National identity card (must show name, photograph, address, date of birth, and expiration date).
- U.S. driver's license.
- Civil birth certificate (for dependents under 18).
- Foreign driver's license.
- Foreign or U.S. voter's registration card.
- U.S. state identification card.
- Foreign military identification card.
- Visa.
- U.S. military identification card.
- Foreign and U.S. immigration records (e.g., Permanent Resident Card).
- American Indian and Alaska Native tribal enrollment cards.
You must submit one document that proves your identity and another that proves your foreign status, unless you submit a passport, which proves both. The IRS will return your original documents to you by mail, which can take 60 days or more. Alternatively, you can have your documents certified by an IRS-authorized Certified Acceptance Agent (CAA) or by the issuing agency itself. Using a CAA is often the preferred method as it avoids mailing your original documents.
Exceptions to the Tax Return Requirement
In certain limited circumstances, you can apply for an ITIN without submitting a U.S. federal income tax return. These exceptions typically apply when you have a U.S. tax obligation that doesn't require filing a full tax return but does require an ITIN. Examples include:
- Third-party withholding: If a U.S. payer is required to withhold U.S. income tax on certain types of income paid to you and you need to provide an ITIN to that payer.
- Treaty benefits: If you are eligible for reduced withholding tax rates under a U.S. tax treaty and need an ITIN to claim those benefits.
- Filing certain informational returns: Such as Form 5472 for reporting transactions with a foreign-owned U.S. corporation. This is a common scenario for individuals forming a U.S. LLC.
If you are applying under an exception, you must include documentation with your Form W-7 that substantiates the exception. This might include a letter from the withholding agent or payer, or proof of the requirement to file an informational return.
How to Submit Your ITIN Application
There are three primary ways to submit your Form W-7 application:
Mail your application to the IRS: You can mail your completed Form W-7, your tax return (or other required documentation for exceptions), and your original or certified identification documents to the IRS address listed in the Form W-7 instructions. This is the most direct method but involves mailing sensitive original documents and can lead to longer processing times.
Apply through a Certified Acceptance Agent (CAA): This is often the most convenient and secure method. CAAs are individuals or entities authorized by the IRS to help applicants complete and submit Form W-7. They can verify your original identification documents and Form W-7 application on your behalf, sending them to the IRS. This means you do not have to mail your original documents to the IRS, significantly reducing the risk of loss or delay. itin.net works with trusted CAAs to streamline this process for our clients.
Apply at an IRS Taxpayer Assistance Center (TAC): Some IRS TACs offer ITIN application services by appointment. You will need to schedule an appointment and bring your original identification documents with you for verification. Availability can be limited, and not all TACs provide this service.
Regardless of the method chosen, ensure all parts of Form W-7 are completed accurately and legibly. Missing information or incorrect details are common reasons for application delays or rejections.
Processing Times and Costs
Cost: There is no fee charged by the IRS to apply for an ITIN. However, if you use a CAA, they may charge a service fee for their assistance. The cost for using a CAA varies by provider. If you choose to mail your application, you will only incur postage costs.
Processing Time: Processing times for ITIN applications can vary significantly. Currently, the IRS is experiencing substantial processing backlogs.
- Mail applications: If you mail your application directly to the IRS, it can take 11 to 17 weeks or longer from the date the IRS receives your application to receive your ITIN. This timeframe does not include the time it takes for your identification documents to be returned.
- CAA applications: Applications submitted through a CAA may be processed faster as CAAs can often submit them electronically or expedite the initial verification process. However, the ultimate processing by the IRS still takes time.
These timelines are estimates and can change based on IRS workload and other factors. It is advisable to apply well in advance of any tax deadlines.
Common Mistakes When Applying for an ITIN
To avoid delays or rejections, be aware of these common mistakes when applying for an ITIN:
- Incomplete or inaccurate Form W-7: Ensure all fields are filled out correctly. Double-check names, addresses, and identification numbers. Any missing information will cause delays.
- Failure to include a valid tax return: Unless you qualify for an exception, a U.S. federal income tax return must be attached. If you are filing to claim a treaty benefit or an exception, ensure you have the correct documentation.
- Incorrect or uncertified identification documents: You must submit original documents or certified copies from the issuing agency or a CAA. The IRS will not accept photocopies unless they are certified by the issuing agency. Submitting expired documents is also a common error.
- Not proving both identity and foreign status: If you don't use a passport, you need two separate documents: one to prove identity and another to prove foreign status. Ensure both are valid and meet IRS requirements.
- Mailing original documents without using a CAA: While not strictly a mistake, mailing original documents significantly increases the risk of them being lost or stolen in transit. Using a CAA protects your original IDs.
- Incorrect ITIN application method for your situation: For example, attempting to apply for an ITIN without a tax return when you don't qualify for an exception will lead to rejection.
What Happens After You Receive Your ITIN?
Once your ITIN application is approved, the IRS will mail you an official notice, CP-565, containing your ITIN. This is a critical document, so keep it in a safe place.
- Using your ITIN: You will use this number on all U.S. federal tax returns you file. It becomes your permanent tax identification number.
- Maintaining your ITIN: Your ITIN is valid for life unless it expires or is voluntarily surrendered. The IRS may revoke or deactivate an ITIN if it's not used on a federal tax return for five consecutive tax years, or if it was issued in error, or based on other IRS criteria. If your ITIN is not used for five years, you will need to reapply.
- ITIN Renewal: While ITINs do not have a fixed expiration date, the IRS has implemented a renewal program for ITINs that have not been used on a federal tax return for three consecutive tax years. If your ITIN falls into this category, you will need to renew it by submitting Form W-7 along with a federal tax return. The IRS will notify you if your ITIN requires renewal. Previously, ITINs ending in 70, 80, or 90 were subject to mandatory renewal, but this is no longer the case. All ITINs are now valid indefinitely unless revoked or deactivated.
- Next Steps: For many individuals, obtaining an ITIN is the first step toward establishing a presence in the U.S. for business or investment purposes. If you are planning to form a U.S. LLC, you will likely need an EIN (Employer Identification Number) as well, which can be obtained by filing Form SS-4. Establishing a U.S. bank account is another common next step for individuals doing business in the U.S.
How to Get Help with Your ITIN Application
Navigating the ITIN application process can be complex, especially for those unfamiliar with U.S. tax forms and procedures. If you are asking yourself how to request a new itin number and feel uncertain about any step, seeking assistance is wise.
- Certified Acceptance Agents (CAAs): As mentioned, CAAs are IRS-authorized to assist with Form W-7 submissions. They can verify your documents, help complete the form, and submit it on your behalf. This is particularly useful for individuals who want to avoid mailing original identification documents. itin.net can connect you with reliable CAAs.
- Tax Professionals: Enrolled Agents (EAs) or Certified Public Accountants (CPAs) with experience in international taxation and ITIN applications can provide comprehensive guidance. They can help determine your eligibility, ensure your tax return is filed correctly, and advise on any other U.S. tax obligations.
- IRS Resources: The IRS website provides extensive information, including detailed instructions for Form W-7 and FAQs. You can also contact the IRS directly with specific questions, though wait times can be long.
For individuals planning to form a U.S. LLC or requiring an EIN for their business activities, it's beneficial to work with a service that can assist with all these requirements. Understanding the entire process from ITIN to business setup is key for successful U.S. ventures. For more information on ITIN applications and related services, you can visit the ITIN application service, learn about obtaining an EIN, or explore U.S. LLC formation.