Gokce Tandogdu
ITIN Specialist, itin.net
You request an ITIN by submitting Form W-7, Application for IRS Individual Taxpayer Identification Number, along with original or certified copies of supporting identification documents and a U.S. federal tax return to the IRS. This process is for individuals who need a U.S. taxpayer identification number but do not have and are not eligible to obtain a Social Security number (SSN).
Understanding how to request an ITIN is essential for many non-residents and foreign nationals who engage in U.S. financial activities, such as investing in U.S. real estate, operating a U.S. business, or fulfilling specific U.S. tax obligations. The IRS issues ITINs solely for tax purposes.
Who Needs an ITIN?
An ITIN is required for individuals who are not U.S. citizens or U.S. lawful permanent residents, do not have an SSN, and have a U.S. tax filing obligation or are filing a U.S. tax return for specific reasons. This includes:
- Non-resident aliens filing a U.S. federal income tax return (e.g., Form 1040-NR).
- 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 are non-resident aliens and require a U.S. taxpayer identification number.
- Individuals who are filing a U.S. tax return to claim a tax treaty benefit.
- Individuals who are filing a U.S. tax return to claim an exception to the rules regarding full-time employment and to claim dependents.
- Individuals who are required to file a U.S. tax return or information return (such as Form 5472 for U.S. LLCs with foreign owners) and do not have an SSN.
Eligibility is strictly tied to U.S. tax law requirements. If you are unsure whether you meet the criteria, consulting with a tax professional is advisable.
Eligibility Requirements for an ITIN
The primary eligibility requirement for an ITIN is the need for a U.S. taxpayer identification number for U.S. tax purposes, coupled with ineligibility for an SSN. The IRS will not issue an ITIN if you are eligible for an SSN. The Social Security Administration determines SSN eligibility, which is generally tied to U.S. work authorization.
Common scenarios where an ITIN is necessary include:
- Opening a U.S. bank account: While some U.S. banks may allow account opening with just a foreign passport and other identification, many require a U.S. taxpayer identification number, especially for certain types of accounts or if you are considered a U.S. person for tax purposes (e.g., resident alien). An ITIN can fulfill this requirement. If you are looking to open a U.S. bank account, consider services like Mercury, Relay, or Brex, which cater to international entrepreneurs. You can learn more about opening a U.S. bank account on our site.
- Investing in U.S. property: If you own U.S. rental property, you must file a U.S. tax return. Foreign individuals receiving rental income from U.S. property generally need an ITIN to file their tax returns and report this income.
- Operating a U.S. business: Foreign individuals who own or operate a U.S. business, such as a U.S. LLC, are often required to file U.S. tax returns. For instance, foreign-owned single-member U.S. LLCs must file Form 5472 and Form 1120. The owner of the LLC will typically need an ITIN to file any required tax returns or information returns if they do not have an SSN. Forming a U.S. LLC is a common step for foreign nationals looking to do business in the United States.
- Claiming tax treaty benefits: If you are a non-resident alien receiving U.S. source income that is subject to withholding (like dividends or royalties), and you wish to claim a reduced rate or exemption under a U.S. tax treaty, you may need to file a U.S. tax return using an ITIN to claim these benefits.
Remember, the ITIN is strictly for tax reporting and identification purposes with the IRS. It does not grant work authorization, provide eligibility for Social Security benefits, or serve as a general identification document for purposes outside of U.S. taxation.
Required Documents for ITIN Application
To apply for an ITIN, you must submit Form W-7 along with supporting documentation. The required documents fall into two main categories: proof of identity and proof of foreign status.
Proof of Identity
You must provide original documents or certified copies from the issuing agency that show your name, photograph, and either current U.S. address or foreign address. The IRS prefers original identification documents whenever possible. If you submit certified copies, they must be certified by the issuing agency (e.g., the agency that issued your passport or birth certificate). Alternatively, you can have your documents verified by a Certified Acceptance Agent (CAA). Many individuals choose to use a CAA, such as itin.net, to avoid mailing original documents to the IRS.
Acceptable documents for proof of identity include:
- Passport: This is the preferred document as it establishes both identity and foreign status.
- National identity card: Must contain your photograph, name, address, date of birth, and expiration date.
- U.S. driver's license.
- Foreign driver's license.
- U.S. state identification card.
- Foreign voter's registration card.
- U.S. military identification card.
- Foreign military identification card.
- U.S. visa.
- Civilian foreign identification card (must contain photograph and sufficient identifying information).
- Medical records (dependent only).
- School records (dependent only).
If you are applying as a dependent, you will also need to provide documentation linking you to the sponsor, such as a birth certificate or adoption decree. The sponsor will need to provide their own proof of identity and foreign status.
Proof of Foreign Status
If your proof of identity document (like a passport) does not also establish your foreign status, you will need a separate document to prove you are a non-U.S. person. If you use a passport, it serves as proof of both identity and foreign status.
If you use another identity document, you may need to provide one of the following in addition:
- Birth certificate: Must show your name, date of birth, place of birth, and parents' names.
- Foreign driver's license.
- National identity card.
- U.S. visa.
- U.S. state identification card.
- Civilian foreign identification card.
U.S. Federal Tax Return
Crucially, Form W-7 must be submitted with a valid U.S. federal income tax return for the year you are claiming the ITIN. The only exceptions are for those applying for an ITIN to claim treaty benefits or to meet specific IRS requirements without filing a full tax return (e.g., certain withholding agents or third-party payers). For most applicants, this means filing Form 1040-NR for non-resident aliens, or other relevant tax forms as required.
If you are applying for an ITIN solely to claim treaty benefits, you typically need to attach Form W-7 to your tax return and send both to the IRS. If you are applying for an ITIN to meet specific IRS requirements without filing a tax return, you must attach specific documentation to your Form W-7 application, such as a letter from the IRS or a third party explaining the need for the ITIN. For example, if you are seeking an ITIN to apply for an EIN (Employer Identification Number) for a U.S. business you are forming, you may be able to apply for the EIN first and then use that to justify the ITIN application without an immediate tax return. You can find information on obtaining an EIN on our site.
How to Submit Your ITIN Application
There are three primary methods for submitting your Form W-7 application to the IRS:
- Mail the application directly to the IRS: You can mail your completed Form W-7, original or certified supporting identification documents, and your U.S. federal tax return to the IRS address listed in the Form W-7 instructions. This is the most direct method but involves mailing original documents, which carries a risk of loss or damage.
- Apply through a Certified Acceptance Agent (CAA): CAAs are individuals or entities authorized by the IRS to help applicants submit their Form W-7 applications. They can review your documentation and forward your application to the IRS. A significant benefit of using a CAA is that they can verify your original identification documents and return them to you on the same day, eliminating the need to mail originals to the IRS. itin.net is a CAA service that can assist you with this process.
- Visit an IRS Taxpayer Assistance Center (TAC): Some IRS TACs offer ITIN application services by appointment. You must schedule an appointment in advance. TACs can verify original documents but may not be able to return them on the same day. It is essential to check with your local TAC to confirm availability and specific requirements.
Each method has its advantages and disadvantages. For many, especially those hesitant to mail original documents, the CAA route offers a balance of convenience and security.
Processing Times and Costs
The IRS does not charge a fee to apply for an ITIN. However, if you use a third-party service or a Certified Acceptance Agent (CAA), they may charge a fee for their assistance. itin.net, for example, charges a fee for its services, which include assisting with the application and verifying your documents.
IRS processing times for Form W-7 can vary significantly. Historically, processing could take anywhere from 4 to 11 weeks, depending on the volume of applications the IRS is receiving. During peak tax seasons (typically January through April), processing times may be longer. The IRS aims to process applications within 7 weeks, but it is advisable to apply well in advance of any tax deadlines.
Once your application is approved, the IRS will mail you a letter containing your ITIN. This letter, known as IRS notice CP-565, is your official notification of your assigned ITIN. If your application is rejected, the IRS will send a notice explaining the reason for the denial, often IRS notice CP-48. You will then have the opportunity to correct any issues and resubmit your application.
It is important to note that the IRS has stated that ITINs do not expire if they are used on a federal tax return at least once every three consecutive tax years. However, if an ITIN has not been used on a federal tax return for three consecutive years, the IRS may begin to phase out the ITIN. If your ITIN has been deactivated and you need it for tax purposes, you will need to reapply by submitting a new Form W-7 with a U.S. federal tax return.
Common Mistakes When Applying for an ITIN
Applying for an ITIN can be straightforward, but several common mistakes can lead to delays or rejections. Understanding these pitfalls can help ensure a smoother application process.
- Incomplete or inaccurate Form W-7: Ensure all sections of the Form W-7 are filled out completely and accurately. Missing information or errors can cause the IRS to reject your application. Pay close attention to names, addresses, and identification numbers.
- Incorrect supporting documentation: Failing to provide the correct types of identification documents, or not providing originals or certified copies, is a frequent issue. Remember, the IRS requires proof of identity and foreign status. If your primary document (like a passport) doesn't cover both, you need a second document.
- Not including a U.S. federal tax return: For most applicants, Form W-7 must be submitted with a complete and signed U.S. federal tax return for the relevant tax year. If the tax return is missing, incomplete, or not signed, the application will likely be rejected. Ensure the tax return is for the correct year and properly filed.
- Submitting photocopies instead of originals or certified copies: Unless you are using a CAA or an IRS TAC that can verify your documents, you must mail original documents or certified copies from the issuing agency. Photocopies are generally not accepted.
- Incorrectly claiming treaty benefits: If you are applying to claim treaty benefits, ensure you are correctly applying the treaty provisions and that your income qualifies. Incorrect claims can lead to rejection or subsequent IRS scrutiny.
- Not verifying the address for mailing: Ensure you are mailing your application package to the correct IRS address as specified in the current Form W-7 instructions. Addresses can change, so always refer to the latest version of the form.
- Applying for an ITIN when eligible for an SSN: The IRS will deny an ITIN application if you are eligible for an SSN. If you have recently become eligible for an SSN, you should apply for that instead.
Reviewing the official Form W-7 instructions thoroughly before submitting your application is the best way to avoid these common errors. Many applicants find the assistance of a CAA invaluable in navigating these requirements.
What Happens After You Receive Your ITIN?
Once you receive your ITIN (via IRS notice CP-565), it becomes your permanent U.S. taxpayer identification number. You should use this number on all U.S. federal tax returns and other IRS filings where required. It is crucial to keep this notice and your ITIN in a safe place.
If you are applying for an ITIN as part of setting up a U.S. business, such as forming a U.S. LLC, you may also need an EIN. While the ITIN is for individuals, the EIN is for businesses. You can apply for an EIN using Form SS-4 through the IRS website, by mail, fax, or phone. Some services can also assist with the EIN application process.
For individuals who have obtained an ITIN and are operating a U.S. business, like a U.S. LLC, remember the filing requirements. Foreign-owned U.S. LLCs typically need to file Form 5472 annually to report transactions with their foreign owner. This is an information return, not a tax return, but failure to file can result in significant penalties.
If your ITIN has been inactive for three consecutive tax years, the IRS may deactivate it. If you need to use it for tax purposes again, you will need to reapply by submitting a new Form W-7 with a U.S. federal tax return. This is a common reason why individuals need to go through the application process again.
Seeking Help with Your ITIN Application
Navigating the U.S. tax system can be complex, especially for those unfamiliar with its processes. If you find the process of applying for an ITIN daunting, or if your situation is complex, seeking professional assistance is highly recommended.
Certified Acceptance Agents (CAAs) are an excellent resource. As mentioned, CAAs like itin.net, are authorized by the IRS to assist taxpayers with the ITIN application. They can help you complete Form W-7, verify your supporting documents, and submit your application package to the IRS. Using a CAA can significantly simplify the process and provide peace of mind, particularly concerning the handling of original identification documents.
For more complex tax situations, such as those involving significant foreign investments, U.S. business structures, or intricate treaty claims, consulting with a qualified U.S. tax advisor or an enrolled agent is advisable. They can provide tailored advice based on your specific circumstances and ensure compliance with all U.S. tax laws. You can find more information about our specialist, Gokce Tandogdu, on the about page.
Understanding how to request an ITIN is the first step for many foreign nationals and non-residents looking to engage with the U.S. financial and tax systems. By carefully following the IRS guidelines and utilizing available resources, you can successfully obtain the ITIN required for your U.S. tax obligations.