Gokce Tandogdu
ITIN Specialist, itin.net
Once an Individual Taxpayer Identification Number (ITIN) is issued by the IRS, it cannot be directly rescinded or canceled by the taxpayer. The ITIN remains associated with your tax records permanently. However, if you have subsequently obtained a Social Security number (SSN), your ITIN is no longer needed for tax filing purposes and your SSN becomes your primary identifier for all federal tax matters. Understanding this distinction is key to addressing the core of how to rescind an ITIN after getting an SSN.
The ITIN's Permanent Nature and SSN Supersession
The IRS assigns ITINs to individuals who are not eligible for an SSN but require a U.S. taxpayer identification number for tax purposes. This includes foreign nationals filing U.S. tax returns or claiming tax treaty benefits. The ITIN is a nine-digit number formatted like an SSN but beginning with the number 9 and with the fourth and fifth digits ranging from 70 through 88, or 50 through 65. Once issued, the ITIN becomes a permanent part of your IRS record. There is no formal process for a taxpayer to request the cancellation or rescission of their ITIN. The IRS's position is that ITINs are issued for identification and do not expire, although the IRS may revoke an ITIN under specific circumstances, such as if it was improperly issued or is no longer needed. When you obtain an SSN, that number supersedes the ITIN. You must use your SSN for all tax filings going forward. The IRS system will link your SSN to your previous tax filings made with your ITIN, ensuring continuity in your tax history. This means that while you can't "rescind" the ITIN, its practical use ceases once you have an SSN.
Why You Might Have an ITIN and Then Get an SSN
Many individuals initially obtain an ITIN because they have a U.S. tax filing obligation or a U.S. business requirement but do not yet qualify for an SSN. Common scenarios include:
- Foreign nationals working temporarily in the U.S. without work authorization: They may need an ITIN to file a tax return if they have U.S. source income and are not eligible for an SSN.
- Non-resident aliens with U.S. business interests: Individuals who form a U.S. LLC or own U.S. real estate may need an ITIN to file required tax returns, such as Form 1040-NR (U.S. Nonresident Alien Income Tax Return) or Form 5472 (Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business).
- Dependents or beneficiaries: U.S. citizens or resident aliens may claim certain dependents who are not eligible for an SSN, and these dependents may need an ITIN to be claimed on a tax return.
- Individuals seeking to open a U.S. bank account: While not always required, some financial institutions might request an ITIN if an SSN is unavailable. However, obtaining an SSN would then make the ITIN unnecessary for this purpose.
Later, an individual might become eligible for an SSN through employment authorization (e.g., obtaining a work visa like an H-1B), marriage to a U.S. citizen, or other pathways. Once the Social Security Administration (SSA) issues an SSN, the individual must begin using it exclusively for all federal tax purposes. The question of how to rescind an ITIN after getting an SSN arises from a desire to simplify one's tax identity or ensure no conflicting numbers are used.
Steps to Take When You Obtain an SSN
There is no specific form to file to "cancel" your ITIN. The crucial step is to ensure all future tax filings use your SSN exclusively. Here’s what you should do:
- Update Your Information with the IRS: When you file your next tax return (e.g., Form 1040-NR or Form 1040), use your newly issued SSN. Do not include your ITIN on this return or any future returns. The IRS's system is designed to recognize that your SSN is now your primary taxpayer identification number. You do not need to send a separate notification letter or form to the IRS to inform them of your SSN. Simply using the SSN on your tax return is sufficient.
- Inform Other Institutions (If Applicable): If you used your ITIN for purposes other than tax filing, such as opening a U.S. bank account or for business registrations, you may need to proactively update your information with those institutions. For example, if a bank used your ITIN to identify you, they will need your SSN for their records. This is particularly important for financial institutions that report to the IRS.
- Understand IRS Communication: If the IRS has previously sent you notices or correspondence related to your ITIN (e.g., CP-565, Notice of ITIN Assignment), they will now send future communications to your SSN. If you have any outstanding tax matters from periods when you used your ITIN, ensure you address them promptly. The IRS will use your SSN for all future correspondence.
What Happens to Your ITIN in IRS Records?
Your ITIN does not disappear from IRS records. It remains in the IRS system linked to your tax account history. This linkage is important because it allows the IRS to track your entire tax history, even across different taxpayer identification numbers. For instance, if you had U.S. tax obligations for several years using an ITIN, and then obtain an SSN and continue filing, the IRS can connect these periods. This is vital for purposes such as calculating future tax liabilities, determining eligibility for benefits, or verifying past compliance. The IRS may, in rare cases, revoke an ITIN if it was issued in error or if the individual is later found to be ineligible for the reason it was issued. However, obtaining an SSN is not a basis for revocation; it simply makes the ITIN redundant for tax purposes.
Do I Need to Inform the Social Security Administration?
No, you do not need to inform the Social Security Administration (SSA) about your ITIN once you have obtained an SSN. The SSA's role is to issue SSNs and maintain records related to them. Your ITIN is an IRS-issued number. The process of obtaining an SSN typically involves proving your legal right to work in the U.S. or other eligibility criteria. Once you are assigned an SSN, it is your official number for all federal purposes, including taxes. The IRS and SSA systems are designed to communicate and reconcile taxpayer information. When you file taxes with your SSN, the IRS will automatically update its records to reflect your SSN as your primary identifier, effectively sidelining your ITIN for all future tax-related activities.
Tax Filing Considerations After Getting an SSN
When you transition from using an ITIN to an SSN for tax filing, several points are critical:
- Consistency is Key: Always use your SSN on all tax forms and documents. Do not mix or alternate between your ITIN and SSN. This can create confusion and processing delays with the IRS.
- Correct Tax Forms: Ensure you are filing the correct tax form. If you are a non-resident alien with U.S. income, you will typically file Form 1040-NR. Once you become a U.S. resident alien for tax purposes (which often happens when you obtain certain work visas or a green card), you will file Form 1040. Your SSN is required for both.
- Reporting Previous Income: Your tax history under your ITIN remains relevant. For example, if you are applying for certain benefits or loans that require a review of your tax history, the IRS may look at records associated with both your ITIN and SSN. This highlights why you can't truly "erase" the ITIN's existence.
- State Tax Filings: If you have state tax filing obligations, remember to update your SSN with the relevant state tax authorities as well. Procedures vary by state.
When an ITIN Might Still Be Relevant (Rare Cases)
While your SSN supersedes your ITIN for all U.S. federal tax purposes, there might be extremely rare, specific circumstances where an ITIN remains in IRS records without being actively used for filing. For example, if an ITIN was issued as part of an audit or investigation that is still pending, or if there were complex international tax situations involving multiple jurisdictions. However, for the vast majority of individuals who obtain an SSN, the ITIN becomes functionally obsolete for tax filing. The only scenario where an ITIN might be referenced by the IRS after SSN issuance is if there's a need to reconcile past filings or address historical discrepancies. If you are asking how to rescind an ITIN after getting an SSN because you believe it was issued incorrectly or under fraudulent pretenses, that is a different situation that would require direct communication with the IRS, potentially through a tax professional.
Can the IRS Revoke an ITIN?
Yes, the IRS can revoke an ITIN, but not simply because the holder obtained an SSN. The IRS may revoke an ITIN if:
- It was assigned improperly (e.g., the applicant did not meet the criteria for needing an ITIN).
- The taxpayer is later determined to be ineligible for the ITIN.
- The ITIN was not used on a federal tax return for three consecutive tax years. In this case, the IRS may send a notice (CP-48) indicating the ITIN will be deactivated unless the taxpayer responds with a tax return or other required documentation. However, this is a deactivation process, not a rescission initiated by the taxpayer.
- The ITIN is determined to be fraudulent or associated with tax fraud.
If the IRS revokes your ITIN, they will send you a notice informing you of this action. If you have an SSN, this revocation process is unlikely to affect you directly, as your SSN would already be your primary identifier.
Seeking Assistance for Tax Matters
While the process of transitioning from an ITIN to an SSN is largely automatic through your tax filings, navigating complex tax situations can be challenging. If you have any doubts about your tax obligations, the correct forms to file, or how your ITIN and SSN history interact, it is advisable to consult with a qualified tax professional. For those who initially obtained an ITIN to facilitate U.S. business setup, such as forming a U.S. LLC or applying for an Employer Identification Number (EIN) via Form SS-4, and have since obtained an SSN, ensuring all your U.S. tax and business registrations are updated correctly is important. The itin.net service is dedicated to helping individuals understand and manage their U.S. tax identification numbers. If you need assistance with ITIN applications or related matters, consider exploring our services. For general guidance and information on U.S. tax topics, our blog and Q&A index offer further resources. If you have specific questions not covered here, contacting a professional is recommended.
In summary, you cannot directly rescind an ITIN after obtaining an SSN. The SSN automatically becomes your primary tax identification number. Continue to use your SSN for all tax filings, and the IRS system will handle the transition. Your ITIN remains in your record for historical purposes but is no longer used for active tax filings.