Gokce Tandogdu
ITIN Specialist, itin.net
An Individual Taxpayer Identification Number (ITIN) does not need to be formally surrendered to the IRS. The IRS automatically invalidates an ITIN under specific circumstances, primarily when it is not used for a federal tax return for three consecutive filing periods or when the holder obtains a Social Security number (SSN). If you have obtained an SSN, your ITIN is no longer valid for tax purposes, and you must use your SSN for all future federal tax filings.
When an ITIN Becomes Invalid
The IRS has specific rules about when an ITIN becomes invalid. The most common reasons an ITIN is no longer usable are:
- No Tax Filing for Three Consecutive Years: If you do not claim your ITIN on a U.S. federal income tax return for three consecutive tax years, the IRS will deactivate it. This means you will need to apply for a new ITIN if you wish to file a tax return in the future.
- Obtaining a Social Security Number (SSN): Once you are issued an SSN by the Social Security Administration, your ITIN automatically becomes invalid. You are legally required to use your SSN for all tax filing and employment purposes from that point forward. This is the most direct answer to the question of how to surrender an ITIN after getting an SSN: you don't actively surrender it; its validity ceases upon SSN issuance.
- IRS Error or Invalidation: In rare cases, the IRS may invalidate an ITIN if it was issued in error or if there are concerns about its legitimacy. This is uncommon and usually involves direct communication from the IRS.
Why You Don't Need to 'Surrender' Your ITIN
There is no official process or form to 'surrender' an ITIN. The IRS manages ITIN validity through its internal systems. Once an ITIN is associated with an SSN in the IRS database, the SSN takes precedence. Your ITIN is effectively retired from use. Attempting to use an invalid ITIN after obtaining an SSN can lead to significant tax processing delays, rejections of your tax return, and potential penalties from the IRS. It's crucial to use your SSN for all tax-related matters once you have one.
The Role of the SSN
The Social Security number is the primary identifier for individuals authorized to work in the United States and for tax purposes. It is issued by the Social Security Administration (SSA) and is used for a wide range of activities, including employment, banking, and social security benefits. If you have become eligible for an SSN (e.g., through employment authorization, family sponsorship, or other means), you must transition to using your SSN exclusively for all federal tax filings. This includes filing your U.S. federal income tax return, whether it's Form 1040, 1040-SR, 1040-NR, or any other required tax form.
What to Do When You Get an SSN
Upon receiving your SSN, you should immediately update your tax information with any relevant parties. This primarily means ensuring that your SSN is used for your next tax filing. If you are an employee, you will need to provide your SSN to your employer by completing Form W-4, Employee's Withholding Certificate. If you are self-employed or have other income that requires estimated tax payments, ensure you use your SSN when making those payments.
For entities that may have previously used your ITIN, such as a U.S. LLC where you might have been 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), you should confirm with the entity and their tax preparer how to update your information. However, Form 5472 is typically filed by the entity, not the individual, and relates to the ownership structure, not the individual's personal tax filing status. The IRS uses the SSN as the primary identifier for individuals.
If you have been using your ITIN to open a U.S. bank account, you will likely need to provide your SSN to the bank to update your account information. Many financial institutions require an SSN for account opening or to remain compliant with reporting requirements. Services like Mercury, Relay, or Brex, which cater to businesses and entrepreneurs, will also require an SSN for individuals associated with the business if they are U.S. persons or have a U.S. tax identification.
Applying for an EIN vs. ITIN
It's important to distinguish between an ITIN and an Employer Identification Number (EIN), also known as a Federal Tax Identification Number. An EIN is for businesses, not individuals. If you are forming a U.S. LLC or operating a business that requires an EIN, you would apply for that separately using Form SS-4. Obtaining an EIN does not affect your ITIN or SSN status. However, if you are establishing a U.S. LLC and plan to operate it, you will likely need either an ITIN (if you are a foreign national without an SSN) or an SSN to be associated with the LLC for tax purposes, especially when filing informational returns like Form 5472. The process for obtaining an EIN is distinct from the ITIN application process, which is handled through the / ITIN application service.
What if I Used My ITIN After Getting an SSN?
If you have accidentally used your ITIN on a tax return after obtaining an SSN, you need to correct this with the IRS. The IRS will likely process your return but may issue notices regarding the discrepancy. The best course of action is to file an amended tax return using Form 1040-X, Amended U.S. Individual Income Tax Return, and provide your SSN. You will need to clearly indicate that the SSN should be used instead of the ITIN. It is highly recommended to consult with a qualified tax professional or refer to IRS guidance on correcting tax return information when an ITIN was used instead of an SSN.
Can an ITIN Be Renewed?
ITINs do not expire in the same way a driver's license does. However, as mentioned, they can become inactive if not used for tax filing for three consecutive years. If your ITIN has become inactive due to non-use, you must reapply for a new ITIN using Form W-7, Application for IRS Individual Taxpayer Identification Number, along with the required supporting documentation. The process of reapplying for an ITIN is similar to the initial application. You can apply directly with the IRS or through a Certified Acceptance Agent (CAA). Using a CAA can sometimes streamline the process, as they are trained by the IRS and can verify your original identification documents, potentially saving you from mailing them to the IRS. The itin.net service assists individuals in navigating this application process.
Next Steps After Obtaining an SSN
Once you have your SSN, your focus should shift to using it correctly for all tax and financial obligations. This includes:
- Tax Filings: Always use your SSN on your federal income tax returns (e.g., Form 1040-NR). Ensure your employer has your SSN for withholding purposes.
- Banking: Update your bank and other financial institution records with your SSN.
- Business Filings: If you are involved with a U.S. business, such as a U.S. LLC, ensure all relevant tax identification details are updated with your SSN if applicable. This is particularly important for compliance with regulations like Form 5472.
- Future Tax Planning: Understand that your tax obligations and benefits will now be tied to your SSN. This may affect eligibility for certain tax credits or deductions.
Seeking Professional Assistance
Navigating U.S. tax laws and identification numbers can be complex, especially when transitioning from an ITIN to an SSN. If you are unsure about how to update your tax information, amend previous returns, or understand your ongoing tax obligations, consulting with a qualified tax professional is advisable. They can provide personalized guidance based on your specific circumstances. For those looking to establish a U.S. presence, understanding the interplay between ITINs, SSNs, EINs, and business structures like U.S. LLCs is key. Resources like itin.net offer assistance with ITIN applications, and understanding the broader context of U.S. business setup, including obtaining an EIN /ein or forming a /llc, is often a necessary step for foreign nationals.
For more information on ITINs and related tax matters, you can explore the /qa section or learn more about the author, an ITIN Specialist, on the /about page.