Gokce Tandogdu
ITIN Specialist, itin.net
An ITIN (Individual Taxpayer Identification Number) is a nine-digit number issued by the Internal Revenue Service (IRS). The most direct answer to "what number does itin start with" is that all ITINs begin with the digit 9.
For example, an ITIN will look like this: 9XX-XX-XXXX. This format is consistent across all ITINs assigned by the IRS. The specific digits following the initial '9' are assigned by the IRS and do not carry inherent meaning beyond identification.
What is an ITIN and Who Needs One?
An ITIN is assigned to individuals who are non-resident aliens, resident aliens, or certain non-resident aliens who cannot obtain a Social Security Number (SSN). You need an ITIN primarily for U.S. tax purposes. This includes:
- Filing a U.S. federal tax return (e.g., Form 1040-NR for non-resident aliens).
- Claiming tax treaty benefits.
- Meeting certain U.S. tax requirements, such as reporting income from U.S. sources.
It's important to understand that an ITIN is not a work authorization document. It is solely for tax administration purposes. Many foreign nationals, business owners forming a U.S. LLC, and investors need an ITIN to comply with U.S. tax laws even if they do not live or work in the United States.
ITIN vs. SSN: Key Differences
While both are taxpayer identification numbers, an SSN is issued by the Social Security Administration (SSA) and is primarily for individuals authorized to work in the United States. An ITIN, as established, begins with the number 9 and is issued by the IRS for tax administration purposes. If you are eligible for an SSN, you must obtain one instead of an ITIN.
Common scenarios where an ITIN is required include:
- Foreign students on F or J visas who have U.S. source income and are not eligible for an SSN.
- Non-resident aliens who receive U.S. source income (e.g., rental income, royalties, dividends) and need to file a U.S. tax return or claim treaty benefits.
- Individuals who are married to U.S. citizens or resident aliens but are not themselves eligible for an SSN.
- Dependents or spouses of U.S. visa holders who have U.S. tax filing obligations.
- Partners or beneficiaries of U.S. partnerships or estates/trusts.
Even if you are not physically present in the U.S., you may still need an ITIN if you have U.S. tax obligations. Understanding the distinction between an ITIN and an SSN is the first step in ensuring U.S. tax compliance.
How to Obtain an ITIN: The Application Process
The IRS issues ITINs through the Form W-7, Application for IRS Individual Taxpayer Identification Number. You cannot apply for an ITIN online or by phone; you must submit a complete application with supporting documentation.
Required Documentation for Form W-7
To apply for an ITIN, you generally need to provide the following:
- Completed Form W-7: Ensure all sections are filled out accurately. You must provide your full legal name, foreign address, and U.S. address (if applicable).
- Original or Certified Copies of Identification: You must submit an original, valid, government-issued identification document. Acceptable documents include passports, national identity cards, U.S. driver's licenses, civil birth certificates, foreign driver's licenses, and state identification cards. If you submit an original document, the IRS will return it to you. Alternatively, you can use certified copies from the issuing agency or obtain verification through a Certifying Acceptance Agent (CAA).
- Original or Certified Tax Return: You must submit a complete U.S. federal income tax return with your Form W-7, unless you qualify for an exception. For example, if you are applying for an ITIN to claim treaty benefits, you may need to submit specific documentation related to that claim.
Submission Methods for Form W-7
There are three primary ways to submit your Form W-7 application:
- Mail to the IRS: You can mail your completed Form W-7, tax return, and supporting identification documents directly to the IRS ITIN Operation in Austin, Texas. Be aware that mailing original documents carries a risk of loss, and processing times can be lengthy.
- Apply through a Certified Acceptance Agent (CAA): This is often the most convenient method. A CAA is an individual or entity authorized by the IRS to help taxpayers apply for ITINs. When you apply through a CAA, such as itin.net, they can verify your original identification documents and forward your application to the IRS. This means you do not have to mail your original documents, reducing the risk of them being lost or delayed in the mail.
- Visit an IRS Taxpayer Assistance Center (TAC): Some IRS TACs offer ITIN application services by appointment. You must bring your original identification documents with you for verification. Appointments can be difficult to secure, and not all TACs provide this service.
ITIN Processing Times and Costs
The IRS does not charge a fee to apply for an ITIN. However, if you use a service or a CAA, they may charge a fee for their assistance. The IRS processing times for ITIN applications can vary significantly. Currently, the IRS estimates processing times can range from 7 to 11 weeks from the date the application is received. This timeframe can be longer during peak tax seasons or if the application is incomplete or contains errors.
- Peak Season: During tax season (typically January through April), processing times can extend. It's advisable to apply well in advance of any tax filing deadlines.
- Completeness: Incomplete applications or missing documentation will cause delays. The IRS will send you a letter if there are issues, but this adds to the overall processing time.
If you need an ITIN to file your tax return by a specific deadline, it is crucial to apply as early as possible. For example, if you are forming a U.S. LLC and need an ITIN to file Form 5472 for reporting transactions with a foreign-owned U.S. disregarded entity, you should factor in these processing times.
Common Mistakes When Applying for an ITIN
Many applicants encounter delays or rejections due to common errors on the Form W-7. Being aware of these pitfalls can help ensure a smoother application process:
- Incomplete Form W-7: Missing information, such as a missing signature or incorrect name spelling, is a frequent issue. Ensure you use the exact name as it appears on your identification document.
- Incorrect or Missing Tax Return: Forgetting to include a complete U.S. federal tax return (unless an exception applies) is a primary reason for rejection. The tax return must be signed and dated.
- Improper Identification Documents: Submitting photocopies instead of original documents or certified copies, or providing identification documents that have expired, will lead to the application being returned.
- Mismatched Information: Discrepancies between the information on Form W-7 and your supporting identification documents (e.g., date of birth, name) can cause problems.
- Not Providing a Foreign Address: Even if you reside in the U.S. temporarily, you must provide a foreign address on Form W-7 if you are a non-resident alien. This is a key differentiator for the IRS.
Carefully reviewing your application and all supporting documents before submission can prevent these common mistakes. Using a CAA can also help identify and correct errors before the application is sent to the IRS.
What Happens After You Receive Your ITIN?
Once your ITIN application is approved, the IRS will mail you an ITIN assignment letter, typically a CP-565 notice, confirming your new ITIN. This letter is important for your tax records.
With your ITIN, you can now:
- File your U.S. federal income tax return: If you haven't already filed it with your W-7 application, you will need to file it using your assigned ITIN. For example, non-resident aliens typically file Form 1040-NR.
- Open a U.S. bank account: While not all banks require an ITIN, some may ask for it, especially if you do not have an SSN. Having an ITIN can facilitate opening accounts with certain institutions, though many now offer options for foreign nationals. If you are looking to open a U.S. bank account, an ITIN might be helpful.
- Apply for an EIN: If you plan to start a business in the U.S., you may need an EIN (Employer Identification Number). While an SSN is often preferred for EIN applications, an ITIN can sometimes be used, particularly if you are the sole proprietor of a U.S. business and need to file specific tax forms.
- Comply with other U.S. tax obligations: This could include reporting income from U.S. investments, fulfilling requirements for U.S. real estate, or meeting specific reporting obligations for foreign-owned U.S. businesses.
It is essential to keep your ITIN assignment letter and your ITIN confidential and secure, just as you would an SSN.
ITIN Renewal and Updates
ITINs do not expire automatically, but they can become invalid if they have not been used on a federal tax return for three consecutive tax years. The IRS may also invalidate ITINs that have not been used in a certain period or those with outdated information.
If your ITIN becomes invalid, or if you need to update your information (such as your name or address), you will need to reapply using Form W-7 and provide updated documentation. The process for renewal or updating an ITIN is similar to the initial application process.
- Check Your ITIN Status: You can check if your ITIN is still valid by reviewing IRS notices or by contacting the IRS directly. However, the most straightforward way to ensure compliance is to file a tax return every year if you have a U.S. tax obligation.
- Name Changes: If your legal name has changed, you must submit documentation proving the name change (e.g., marriage certificate, court order) along with your updated Form W-7.
- No Tax Filing: If you have an ITIN but no U.S. tax filing requirement for three consecutive years, your ITIN will become invalid. You will need to reapply if you later have a U.S. tax obligation.
When to Seek Professional Assistance
While the Form W-7 application process is designed to be manageable, errors or complex situations can arise. Seeking help from a qualified professional can save time and prevent costly mistakes. This is particularly true if:
- You are unsure about your U.S. tax obligations.
- You have complex foreign income or assets to report.
- You are applying for an ITIN for a minor or a dependent.
- You are applying to claim specific tax treaty benefits.
- You have previously had an ITIN application rejected.
Certified Acceptance Agents (CAAs) are specifically trained to assist with the ITIN application process. They can verify your documents, help complete the Form W-7 accurately, and submit it to the IRS on your behalf, often expediting the process and reducing the risk of errors. itin.net is a service that provides assistance through CAAs. For complex tax situations or advice beyond ITIN applications, consulting a U.S. tax attorney or a Certified Public Accountant (CPA) with international tax experience is recommended.
In summary, the answer to "what number does itin start with" is definitively the number 9. This digit is the consistent starting point for all ITINs, distinguishing them from SSNs and serving as the first identifier for individuals needing a U.S. tax identification number.