Gokce Tandogdu
ITIN Specialist, itin.net
An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the U.S. Internal Revenue Service (IRS). The IRS assigns ITINs to individuals who are required to have a U.S. taxpayer identification number for tax purposes but who do not have, and are not eligible to obtain, a Social Security number (SSN). ITINs are for federal tax purposes only. They do not authorize employment in the United States, nor do they provide eligibility for Social Security benefits. Many non-residents and foreign nationals who need to file U.S. tax returns, especially those with U.S. business interests, will need an ITIN. If you are wondering what is an itin number for taxes, understand that it is the IRS's solution for tracking tax obligations of individuals without an SSN.
Who Needs an ITIN?
The primary individuals who need an ITIN are non-resident aliens who have U.S. tax filing or reporting requirements. This includes:
- Non-resident aliens filing a U.S. federal income tax return: If you are not a U.S. resident for tax purposes but have U.S. source income (e.g., from rental properties, investments, or services performed in the U.S.), you likely need to file a U.S. tax return, such as Form 1040-NR (U.S. Nonresident Alien Income Tax Return), and therefore need an ITIN.
- Dependents or resident aliens who file a U.S. tax return: In some cases, dependents or resident aliens who are not eligible for an SSN but are required to file a U.S. tax return will need an ITIN.
- Individuals claiming tax treaty benefits: If you are a non-resident alien eligible for a reduced tax rate or exemption from U.S. tax under a tax treaty, you must have an ITIN to claim these benefits on your tax return.
- Spouses and dependents of U.S. citizens or resident aliens: If a spouse or dependent is a non-resident alien not eligible for an SSN but must be listed on a U.S. tax return, they may need an ITIN.
- Individuals required to file U.S. tax information returns: This can include situations where a foreign national has ownership in a U.S. business. For example, if you own a U.S. U.S. LLC (Limited Liability Company), you may be 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) and its related Form 1120-F (U.S. Income Tax Return of a Foreign Corporation) or Form 1065 (U.S. Return of Partnership Income) if the LLC is treated as a partnership for tax purposes. The IRS requires these filings to track foreign ownership and transactions in U.S. entities, and an ITIN is necessary for the foreign owner to comply with these reporting obligations. You can learn more about setting up a U.S. LLC and associated tax forms on our /llc page.
- Individuals opening a U.S. bank account: While not strictly for tax filing, many U.S. banks require a U.S. taxpayer identification number to open an account. Since non-residents are not eligible for an SSN, they often use their ITIN for this purpose. Having a U.S. bank account is often a prerequisite for conducting business in the U.S., whether through an LLC or other means. Several financial institutions cater to non-residents, and services like Mercury, Relay, or Brex can facilitate opening a /bank-account for foreign nationals.
An ITIN is distinct from an EIN (Employer Identification Number), which is used to identify a business entity. If you are forming a U.S. business, you will likely need both an ITIN for yourself and an EIN for your business. You can apply for an EIN, also known as a Federal Tax Identification Number, using Form SS-4 (Application for Employer Identification Number). Learn more about obtaining an EIN on our /ein page.
What Documents Are Required for an ITIN?
To apply for an ITIN, you must submit Form W-7, Application for IRS Individual Taxpayer Identification Number. Along with the W-7, you must provide original documents or certified copies of documents that prove your identity and foreign status. The IRS requires specific documentation to verify that you are who you say you are and that you are not eligible for an SSN.
Key documents typically include:
- Proof of Identity: This is a document that shows your name, photograph, and date of birth. Acceptable documents include:
- Passport (unexpired)
- National identity card (must show photo, name, current address, date of birth, and expiration date)
- Driver's license
- Foreign military identification card
- U.S. military identification card
- Proof of Foreign Status: This is a document that shows you are a non-U.S. citizen or foreign national. Acceptable documents include:
- Birth certificate (certified copy)
- Foreign driver's license
- Foreign voter's registration card
- Visa
- U.S. Citizenship and Immigration Services (USCIS) photo identification
Important: You must submit original documents or certified copies from the issuing agency. The IRS will return your original documents to you, but this process can take several weeks. To avoid mailing original documents, you can apply through a Certified Acceptance Agent (CAA), which is a service itin.net offers. A CAA can review your original documents and forward certified copies to the IRS on your behalf. This often speeds up the process and provides peace of mind.
How Do I Apply for an ITIN?
There are three main ways to apply for an ITIN using Form W-7:
- Mail the Application to the IRS: You can complete Form W-7, gather your original identification documents, and mail them along with your federal tax return to the IRS address specified in the Form W-7 instructions. The IRS will process your tax return, assign you an ITIN, and then mail your original documents back to you. This method is free but can be time-consuming, as you must wait for the IRS to process your return and return your documents.
- Apply Through a Certified Acceptance Agent (CAA): This is often the most convenient and secure method. A CAA is an individual or entity authorized by the IRS to help taxpayers apply for ITINs. The CAA will verify your original identification documents, complete a Form W-7 certification, and forward the application to the IRS. You do not need to mail your original documents to the IRS when applying through a CAA. The service at itin.net acts as a CAA, helping you through this process efficiently.
- Apply at an IRS Taxpayer Assistance Center (TAC): Some IRS TACs offer in-person ITIN application services. You must schedule an appointment in advance. While this allows you to apply in person, you will still need to bring your original documentation, and not all TACs provide this service. It's best to check with the specific TAC to confirm availability and requirements.
Crucial Note: You can only apply for an ITIN when you have a U.S. tax filing requirement. This means you generally must be filing a U.S. tax return (e.g., Form 1040-NR) in the same tax year you apply for the ITIN, unless you qualify for an exception (such as applying for a dependent or spouse who needs an ITIN but is not the primary filer, or if you need an ITIN for specific reasons like opening a bank account and are eligible under specific IRS guidelines not tied to immediate filing).
What is the Cost and Timeline for an ITIN?
There is no fee charged by the IRS to apply for an ITIN. The application process itself is free. However, if you use a service like itin.net to act as your Certified Acceptance Agent, there will be a service fee associated with their assistance. This fee covers the expertise and convenience of having your documents verified and your application processed correctly, avoiding the risk of mailing original documents.
The timeline for receiving an ITIN can vary significantly:
- Processing time: Once the IRS receives your complete ITIN application (Form W-7) and supporting documentation, it can take anywhere from 7 to 14 weeks to receive your ITIN. This timeframe can be longer during peak tax seasons (January through April) or if there are errors or missing information in your application.
- Document return: If you mail your original documents to the IRS, they will be returned to you separately from your ITIN assignment. This can take an additional 4 to 10 weeks after your ITIN is issued.
- CAA processing: Applying through a Certified Acceptance Agent (CAA) can sometimes expedite the initial review of your application, but the IRS still controls the final issuance of the ITIN. The overall timeline from submission to ITIN assignment by the IRS generally remains within the 7-14 week window, but the CAA process ensures your documents are handled correctly from the start.
If you are applying for an ITIN to open a U.S. bank account or establish a U.S. LLC, understanding these timelines is important for your business planning. It's advisable to start the ITIN application process well in advance of when you need it.
Common Mistakes When Applying for an ITIN
Applying for an ITIN can seem straightforward, but several common mistakes can lead to delays or rejections. Being aware of these pitfalls can help ensure a smoother application process:
- Missing or incomplete documentation: Failing to provide all required documents or submitting documents that are expired, uncertified, or not acceptable forms of identification can lead to delays. Ensure your passport is valid and that any other identification is up-to-date.
- Incorrectly filled out Form W-7: Errors on the W-7 form, such as incorrect personal information, missing signatures, or improper selection of application reasons, are frequent causes for rejection. Double-check all fields for accuracy.
- Not attaching a U.S. federal tax return (unless an exception applies): The IRS generally requires that Form W-7 be submitted with a valid U.S. federal income tax return. If you are applying for an ITIN for a reason other than filing a tax return (e.g., for banking purposes or to comply with Form 5472 reporting for a U.S. LLC), you must ensure you meet one of the specific exceptions outlined by the IRS and that your application is correctly coded.
- Mailing original documents without a plan: While the IRS will return your original documents, mailing them carries a risk of loss or damage. Using a CAA mitigates this risk. If you do mail them, ensure you have copies for your records.
- Applying for an ITIN when you are eligible for an SSN: An ITIN is specifically for individuals who cannot get an SSN. If you are eligible for an SSN (e.g., through employment authorization), you must apply for an SSN first. Using an ITIN when an SSN is available can cause significant tax and immigration issues.
- Not understanding ITIN renewal requirements: ITINs expire if not used on a federal tax return for three consecutive tax years. Some ITINs also have expiration dates based on IRS notices. If your ITIN has expired, you will need to reapply using Form W-7. You can find more information about ITIN renewal on our /blog section.
What Happens After You Get Your ITIN?
Once the IRS assigns you an ITIN, you will receive a CP-565 notice from the IRS confirming your ITIN. This is a crucial document, so keep it in a safe place. You can now use this ITIN on your U.S. federal tax returns.
- Filing Future Tax Returns: You must use your ITIN every time you file a U.S. federal tax return. If you have U.S. source income or other U.S. tax obligations in subsequent years, your ITIN will be your primary identifier for tax purposes.
- Opening Bank Accounts: As mentioned, your ITIN can be used to open a U.S. bank account. This is often a necessary step for individuals conducting business in the U.S. or managing U.S. investments.
- Business Filings: If you own or are involved with a U.S. business, such as a U.S. LLC, your ITIN will be required for various filings, including Form 5472. This is particularly important for foreign-owned U.S. entities.
- ITIN Renewal: It's important to note that ITINs do not automatically renew. The IRS has a policy of expiring ITINs that have not been used on a federal tax return for three consecutive years. Additionally, the IRS periodically announces specific ITINs that need to be renewed. If your ITIN has expired, you will need to reapply using Form W-7 and provide updated documentation. Most ITINs issued before 2013 have already expired or will expire soon if not renewed. If you need to renew your ITIN, follow the same application process as applying for a new one.
- IRS Notices: Be aware that the IRS may send you other notices (e.g., CP48, CP575) related to your tax accounts or filings. It's important to respond to these notices promptly or consult a tax professional.
How to Get Help with Your ITIN Application
Navigating the U.S. tax system as a foreign national can be complex. If you are unsure about your tax obligations, the documentation required, or the application process for an ITIN, seeking professional help is advisable. The IRS offers resources, and there are also private services available.
- Certified Acceptance Agents (CAAs): As discussed, CAAs play a vital role in the ITIN application process. They are trained by the IRS to assist taxpayers and can verify your identification documents, significantly reducing the risk associated with mailing originals. Services like itin.net provide CAA assistance, streamlining the process and offering guidance. This can be particularly helpful for individuals who are not physically in the U.S. or who want to ensure their application is accurate.
- IRS Resources: The IRS website provides detailed instructions for Form W-7 and other relevant tax forms. Publication 1915,