Gokce Tandogdu
ITIN Specialist, itin.net
To obtain an ITIN, you must submit Form W-7, Application for IRS Individual Taxpayer Identification Number, to the IRS, along with original or certified copies of identification documents and a U.S. federal income tax return. This process is for individuals who are not eligible for a Social Security number (SSN) but need a U.S. taxpayer identification number for tax purposes. Understanding what you need to get an ITIN number is the first step in successfully applying.
Eligibility for an ITIN
An ITIN is assigned to individuals who are non-resident aliens, resident aliens who are not eligible to obtain an SSN, and any other U.S. or foreign person who has a U.S. tax filing or reporting requirement but is not eligible for an SSN. This includes individuals who:
- Are required to file a U.S. tax return but do not have, and are not eligible to obtain, an SSN.
- Are dependents or spouses of U.S. citizens or resident aliens, and are required to file a U.S. tax return or claim a treaty benefit.
- Are non-resident alien beneficiaries of U.S. trusts, or are U.S. or foreign persons who are beneficiaries of U.S. estates.
- Are non-resident alien owners of U.S. business interests.
- Are U.S. citizens who are filing a U.S. tax return but are residents of Puerto Rico or Guam.
- Are applying for a U.S. visa and are required to file a U.S. tax return.
- Are claiming tax treaty benefits.
It is critical to note that an ITIN does not authorize employment in the United States, nor does it make the holder eligible for Social Security benefits.
Required Documentation for Form W-7
When you apply for an ITIN, you must provide specific documentation to verify your identity and foreign status. The core requirements are:
1. Completed Form W-7
This is the primary application form. It requires personal information such as your name, mailing address, foreign address, and details about your U.S. tax filing. Ensure all fields are accurately completed. Any errors or omissions can lead to delays or rejection of your application.
2. U.S. Federal Income Tax Return
Generally, you must submit a U.S. federal income tax return with your Form W-7 application. This return must be complete and accurate. If you are applying for an ITIN solely to claim treaty benefits or to comply with specific IRS reporting requirements (like those for U.S. LLCs), you may not need to file a full tax return. However, you must attach a statement to your Form W-7 explaining why you are applying for an ITIN and referencing the relevant tax code section or treaty.
3. Original or Certified Proof of Identity and Foreign Status
This is arguably the most crucial part of the application. You must provide documentation that proves both your identity and your foreign status. The IRS accepts a variety of documents, but they must be original or certified copies from the issuing agency. Accepted documents include:
- Passport: This is the preferred document as it proves both identity and foreign status.
- National Identity Card: Must contain a photograph, name, address, date of birth, and expiration date.
- U.S. Driver's License: Must contain the above information.
- State Driver's License: Must contain the above information.
- Foreign Driver's License: Must contain the above information.
- Foreign Military Identification Card: Must contain the above information.
- U.S. Military Identification Card: Must contain the above information.
- Foreign Voters Registration Card: Must contain the above information.
- Civil Birth Certificate: Must contain the above information.
- Medical Records: For individuals under 18 years of age, if no other document is available.
- School Records: For individuals under 18 years of age, if no other document is available.
You need to provide one primary identification document that shows both your photograph and your biographical information (like a passport). If you cannot provide a primary document, you can submit a combination of secondary documents that, together, prove your identity and foreign status. For example, a birth certificate (for identity) and a foreign driver's license (for foreign status).
Important Note on Documents: The IRS will not return original documents submitted by mail. They will be returned within 60 days of receipt. If you wish to retain your original documents, you must submit certified copies. Certified copies can be obtained from the agency that issued the document, or from an IRS-authorized Certified Acceptance Agent (CAA).
How to Apply for an ITIN
There are three primary methods to submit your Form W-7 application:
1. Mail Your Application Directly to the IRS
You can mail your completed Form W-7, along with your original tax return and supporting identification documents (or certified copies), to the IRS Austin, TX 73301-0009. This is the most common method, but it also involves the longest processing times and the risk of mailing original documents.
2. Apply Through a Certified Acceptance Agent (CAA)
A CAA is an individual or entity authorized by the IRS to help taxpayers apply for ITINs. CAAs can authenticate your original identification documents and review your application package before submitting it to the IRS on your behalf. This means you do not have to mail your original documents, as the CAA will return them to you immediately after verification. Using a CAA, such as itin.net, can significantly expedite the process and reduce the risk of document loss. The CAA submits the application package to the IRS on your behalf. This is often the most convenient and secure method.
3. Visit an IRS Taxpayer Assistance Center (TAC)
Some IRS Taxpayer Assistance Centers offer in-person ITIN application services. You must schedule an appointment in advance. You will need to bring your original identification documents or certified copies to the appointment. The IRS TAC will verify your documents and forward your application to the ITIN Operation. Appointment availability can be limited, and this option may not be available in all locations.
What You Need for Specific Situations
Beyond the general requirements, certain situations necessitate specific documentation or forms. Understanding these nuances is key to a smooth application process when asking what do i need to get an itin number.
Applying for a U.S. Bank Account
Many foreign nationals need an ITIN to open a U.S. bank account. While some banks may accept alternative forms of identification, many require a U.S. taxpayer identification number. If your primary reason for needing an ITIN is to open an account with institutions like Mercury, Relay, or Brex, you will typically need to file a tax return or demonstrate a specific tax reporting requirement. Some banks may allow you to open an account with just your passport, but this is becoming less common. For those planning to establish a U.S. presence, obtaining an EIN for a business entity is often a prerequisite for opening a business bank account, and this process can be initiated before an ITIN is issued if the business is foreign-owned. However, if an individual needs to file a tax return related to their U.S. business activities, they will likely need an ITIN. Opening a U.S. bank account is a common next step after forming a U.S. LLC and potentially obtaining an EIN.
Establishing a U.S. LLC
Foreign individuals often form a U.S. LLC for various business purposes. If you are forming a U.S. LLC, you might need an ITIN for several reasons. First, if you are the sole member of a single-member LLC (SMLLC) and are a foreign person, the LLC is disregarded for tax purposes, and its income is reported on your personal U.S. tax return. In this case, you would need an ITIN 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, along with a pro forma Form 1120. The deadline for filing Form 5472 is generally April 15th for the preceding tax year, with an automatic extension to October 15th. Failure to file can result in significant penalties of $10,000 per form. Second, if you are a partner in a U.S. partnership, you may need an ITIN to receive your Schedule K-1 and file your personal U.S. tax return. If your LLC requires an Employer Identification Number (EIN), you can obtain an EIN without having an ITIN. However, if you need to file a personal tax return related to the LLC's activities, the ITIN becomes necessary.
Claiming Tax Treaty Benefits
If you are a foreign national residing in a country with a tax treaty with the United States and you are receiving U.S.-source income (like dividends or royalties), you may be eligible for reduced withholding rates under the treaty. To claim these benefits, you generally need to provide a U.S. taxpayer identification number. If you do not have an SSN, you will need to obtain an ITIN. You will typically file Form W-7 along with a U.S. tax return (e.g., Form 1040-NR, U.S. Nonresident Alien Income Tax Return) or a statement explaining your claim for treaty benefits. You will need to cite the specific article of the treaty that applies to your situation.
Dependents and Spouses
If you are a dependent or spouse of a U.S. citizen or resident alien and you have U.S. income or are claiming certain benefits, you may need an ITIN. For example, if a U.S. citizen claims a dependent who is a foreign national and that dependent has unearned income exceeding a certain threshold, a tax return may be required for the dependent, necessitating an ITIN. Similarly, if a foreign spouse has U.S. income, they might need an ITIN to file jointly or separately.
Processing Times and Potential Delays
Processing an ITIN application can take time. The IRS typically processes ITIN applications submitted by mail within 10-12 weeks during peak seasons and potentially 7-10 weeks during off-peak times. Applications submitted through a CAA or TAC may have slightly different internal processing workflows, but the IRS still needs to issue the ITIN. The IRS issues a notice, CP-565, to confirm the ITIN assignment. This is a crucial document, so ensure your mailing address is correct and that you can receive mail from the IRS.
Potential delays can occur due to:
- Incomplete or inaccurate applications.
- Missing or invalid supporting identification documents.
- Failure to submit a complete U.S. tax return or required statement.
- High volume of applications received by the IRS.
- Issues with the mailing address or delivery of IRS correspondence.
Using a CAA can help mitigate some of these issues, as they ensure the application is complete and accurate before submission, potentially reducing processing time.
Common Mistakes to Avoid
Several common mistakes can prevent your ITIN application from being approved or cause significant delays. Being aware of these pitfalls is essential when considering what you need to get an ITIN number:
- Incorrectly filling out Form W-7: Ensure all sections are completed accurately, including your name as it appears on your identification documents and your correct mailing address.
- Submitting insufficient identification: You must provide documents that prove both your identity and foreign status. A passport is ideal. If using secondary documents, ensure they meet the IRS criteria.
- Not sending original or certified copies: The IRS requires original documents or certified copies from the issuing agency or a CAA. Photocopies are generally not accepted unless certified by a CAA.
- Forgetting the tax return: Most applications require an attached U.S. federal income tax return. If you are exempt from filing a full return, ensure you include the required statement explaining your situation.
- Using an expired ID: Ensure all identification documents are valid and not expired.
- Failing to track your application: If you mail your application directly, you won't receive updates. Using a CAA provides a point of contact for status inquiries.
ITIN Renewal
ITINs do not expire automatically unless they have not been used on a federal tax return for three consecutive tax years. However, the IRS has a policy of renewing ITINs in batches. If your ITIN was issued before a certain date (the IRS announces these dates periodically), you may need to renew it if you plan to file a U.S. tax return for the upcoming tax year. The renewal process is similar to the initial application: you must file Form W-7 with a U.S. federal tax return. You do not need to re-submit all your original identification documents if the IRS already has them on file, but you will need to provide updated proof of identity and foreign status if your previously submitted documents have expired.
Seeking Assistance
Navigating the ITIN application process can be complex, especially for those unfamiliar with U.S. tax requirements. If you are unsure about any aspect of the process, it is highly recommended to seek assistance. Certified Acceptance Agents (CAAs) are trained professionals who can guide you through the application, verify your documents, and submit the package to the IRS. Using a service like itin.net, which specializes in ITIN applications via the CAA program, can streamline the process and provide peace of mind. For complex tax situations, or if you are seeking advice on specific U.S. tax obligations, consulting a qualified tax professional or an attorney specializing in international taxation is advisable. For general information about ITINs and related tax forms, the Q&A index on this site can be a valuable resource.
In summary, to get an ITIN number, you need a completed Form W-7, a valid U.S. federal income tax return (or a statement explaining why you are applying), and original or certified identification documents proving your identity and foreign status. The method of submission—mail, CAA, or TAC—can affect processing time and convenience.