What is itin taxpayers?

Question

ITINMay 25, 2026

What is itin taxpayers?

An ITIN is a tax processing number issued by the IRS to individuals who need a U.S. taxpayer identification number but do not have and are not eligible for a Social Security number.

— Anonymous

1 Answer

Gokce Tandogdu ITIN Specialist, itin.net May 25, 2026 · Accepted Answer · 2026-05-25

An ITIN (Individual Taxpayer Identification Number) is a tax processing number issued by the U.S. Internal Revenue Service (IRS). It is designed for 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). This includes many non-resident aliens, resident aliens, and others who have U.S. tax filing or reporting obligations.

Who Needs an ITIN?

Most individuals who require an ITIN are non-resident aliens needing to file a U.S. tax return, or resident aliens who are filing a U.S. tax return and are not eligible for an SSN. Common situations include:

Non-resident aliens filing a U.S. tax return: If you are not a U.S. citizen or a U.S. resident alien, but you have U.S. source income (e.g., from a business, rental property, or investment) and need to file a federal income tax return (like Form 1040-NR), you will likely need an ITIN. This is the most common scenario when people search for what is itin taxpayers.
Resident aliens filing a U.S. tax return: If you are considered a resident alien for tax purposes under the substantial presence test or the green card test, and you are not eligible for an SSN, you will need an ITIN to file your U.S. tax return (Form 1040).
Dependents or spouses of U.S. citizens/resident aliens: If you are a dependent or spouse of a U.S. citizen or resident alien and you are not eligible for an SSN, you may need an ITIN to be claimed on the U.S. citizen's or resident alien's tax return, or if you have your own U.S. tax filing obligation.
Individuals claiming tax treaty benefits: Some individuals may need an ITIN to claim tax treaty benefits on U.S. income, even if they do not have a filing requirement.
Third-party reporting requirements: Certain individuals may need an ITIN for reporting purposes, such as those required to file Form 5472 for reporting transactions with a related foreign person, which is often a requirement for owners of a U.S. LLC.

An ITIN is different from an Employer Identification Number (EIN) or Social Security Number (SSN). An SSN is issued by the Social Security Administration to U.S. citizens and eligible non-citizens who are authorized to work in the United States. An EIN is a business tax identification number used for businesses, not individuals. The ITIN serves as a personal tax processing number for those without an SSN.

How to Obtain an ITIN

The IRS issues ITINs through a specific application process. You must apply for an ITIN by filing Form W-7, Application for IRS Individual Taxpayer Identification Number. This form requires specific documentation to verify your identity and foreign status. You cannot obtain an ITIN without applying for it; it is not automatically assigned. The application process has several key components:

Complete Form W-7: This form collects personal information, including your name, address, foreign tax identification number (if applicable), and the reason you need an ITIN. You must accurately complete all required fields.
Provide Original or Certified Copies of Identification: You must submit original identification documents or certified copies from the issuing agency. The most commonly accepted documents are a valid passport and one other supporting document such as a birth certificate, national identity card, or driver's license. The IRS has specific rules about which documents are acceptable and how they must be presented.
Include a U.S. Federal Income Tax Return: In most cases, to receive an ITIN, you must file a valid U.S. federal income tax return with your Form W-7. There are limited exceptions to this requirement, such as when applying for certain treaty benefits or specific reporting purposes. If you are filing a tax return to claim a refund or to meet a filing obligation, this return must be complete and accurate.

Methods of Application for an ITIN

You have several options for submitting your Form W-7 application and supporting documents to the IRS:

Mail your application to the IRS: You can mail your completed Form W-7, along with your original or certified identification documents and your U.S. federal income tax return, to the IRS address specified in the Form W-7 instructions. This method requires you to send your original identification documents through the mail, which can be a concern for some applicants. The IRS will review your application and documents and mail them back to you.
Apply through a Certified Acceptance Agent (CAA): This is often the preferred method for many applicants as it allows you to present your original identification documents to the CAA, who will then verify them and send certified copies to the IRS along with your application. This means you do not have to mail your original documents. The CAA acts as an intermediary, streamlining the process and reducing the risk of losing your important documents. itin.net is a service that assists individuals in this process.
Apply at an IRS Taxpayer Assistance Center (TAC): Some IRS TACs offer ITIN application services. You can schedule an appointment to bring your documentation to the TAC. However, not all TACs provide this service, and you must call ahead to confirm availability and make an appointment. You may need to bring original documents or certified copies depending on the specific TAC's requirements.

Each method has its own advantages and disadvantages regarding convenience, security, and processing time.

Processing Times and What to Expect

Once you submit your Form W-7, the IRS will process your application. The processing time can vary significantly depending on the volume of applications the IRS is receiving and the method you used. Historically, processing times have ranged from a few weeks to several months.

Initial Review: The IRS first reviews your application for completeness and verifies your identity documents.
Assignment of ITIN: If your application is approved, the IRS will assign you an ITIN. This number will be mailed to you on a notice. The most common notice you will receive is a CP-565, ITIN Assignment Letter. This letter confirms your ITIN and should be kept in a safe place for your records.
Return of Documents: If you submitted original identification documents by mail, the IRS will mail them back to you. This can take additional time.
Delays: Delays can occur if your application is incomplete, if there are issues with your identification documents, or if the IRS is experiencing a high volume of applications. It is advisable to apply well in advance of any tax filing deadlines to account for potential delays.

If you are applying as part of filing your tax return, the IRS will process your tax return and your ITIN application concurrently. You will receive your ITIN and your tax return refund (if applicable) at different times.

ITIN Renewal and Expiration

While ITINs do not have a strict expiration date in the sense that they must be renewed annually, the IRS has implemented a policy where ITINs that have not been used on a federal tax return for three consecutive tax years are deemed expired. Additionally, the IRS has begun requiring renewal for ITINs with the first four digits 70, 71, 72, 73, 74, 75, 76, 77, 78, 79, 80, 81, 82, or 83.

Deemed Expired: If your ITIN has not been used for three consecutive years, it is no longer valid for tax purposes. You will need to reapply for a new ITIN using Form W-7 and providing updated identification documents and a tax return.
Mandatory Renewal: The IRS has been phasing in a renewal program for specific ITIN ranges. If your ITIN falls within one of the designated ranges and you intend to use it for tax filing, you must renew it. The IRS typically announces these renewal periods and provides instructions on how to renew.
Renewal Process: The renewal process is similar to the initial application. You will need to submit a new Form W-7, along with updated original or certified identification documents, and a U.S. federal income tax return for the year you are filing. You do not need to include a tax return if you are renewing solely to claim treaty benefits under specific circumstances.

It is essential to keep track of your ITIN usage and to stay informed about IRS announcements regarding ITIN renewal requirements to avoid issues with your tax filings.

Common Mistakes When Applying for an ITIN

Applicants often make mistakes that can lead to delays or rejection of their Form W-7 application. Understanding these common pitfalls can help ensure a smoother process:

Incorrect or Incomplete Form W-7: Missing information, illegible handwriting, or incorrect personal details can cause the IRS to reject the application. Ensure all fields are filled out accurately and legibly.
Improper Identification Documents: Submitting expired documents, photocopies instead of originals or certified copies, or documents that do not meet the IRS criteria for verification. Always check the latest Form W-7 instructions for the most up-to-date list of acceptable documents and verification requirements.
Missing or Incorrect Tax Return: Failing to include a valid U.S. federal income tax return when required, or submitting a return that is not properly completed or signed. Remember, the tax return is usually a mandatory part of the ITIN application.
Not Using a Certified Acceptance Agent (CAA) When Appropriate: While not strictly a mistake, not utilizing a CAA can mean mailing original documents, which carries inherent risks. For many, especially those abroad, using a CAA like itin.net offers significant peace of mind and convenience.
Failing to Renew Expired ITINs: Not realizing an ITIN has become inactive due to non-use for three years or not renewing a designated ITIN range when required can lead to complications when filing taxes in subsequent years.

ITINs for Business Purposes: U.S. LLCs and Banking

While an ITIN is an individual tax identification number, it often plays a crucial role for non-residents establishing a U.S. business presence. For example, if you form a U.S. LLC , you may need an ITIN for several reasons:

Opening a U.S. bank account: Many U.S. banks require an ITIN or an EIN to open a business bank account for a foreign-owned LLC. While some banks may accept an ITIN, others might require an EIN. Having an ITIN can be an initial step towards establishing financial operations in the U.S. For instance, services like Mercury, Relay, or Brex often have specific requirements for non-residents, and an ITIN can be a foundational document.
Filing Form 5472: If your U.S. LLC is a single-member LLC (disregarded entity for tax purposes) and is owned by a foreign person, you are generally required to file Form 5472, Information Return of a 23 CFR 1.6038A-1(c) Related Foreign Corporation or a Foreign-Owned U.S. Corporation. This form reports certain transactions between the U.S. business and its foreign owner. While Form 5472 is a business form, the ITIN of the individual owner is often reported on it.
Personal Tax Obligations: If the business generates income that is attributable to you personally, you may need to file a personal U.S. tax return using your ITIN.

It is important to distinguish that an ITIN is for individuals, whereas an EIN is for businesses. However, for non-residents, the ITIN is often the first identification number obtained when planning to set up a U.S. business structure. If you are forming a U.S. LLC, you will also need to consider obtaining an EIN for the business itself, which is a separate application using Form SS-4.

When to Seek Professional Assistance

While the IRS provides instructions for applying for an ITIN, the process can be complex, especially for those unfamiliar with U.S. tax regulations. If you encounter difficulties with your application, have complex tax situations, or are unsure about the documentation required, seeking professional assistance is highly recommended. Certified Acceptance Agents (CAAs) are trained and authorized by the IRS to help with ITIN applications. They can verify your identification documents and ensure your application is complete, reducing the chance of errors and delays. For more complex tax advice, including understanding your U.S. tax obligations or treaty benefits, consulting with a qualified tax professional or an enrolled agent is advisable. You can learn more about the ITIN specialist behind itin.net at our about page.

In summary, an ITIN is a vital tax processing number for individuals who have U.S. tax obligations but cannot obtain an SSN. Understanding the application process, requirements, and potential pitfalls is crucial for successful tax compliance.