Gokce Tandogdu
ITIN Specialist, itin.net
If you don't have an ITIN, you generally cannot file a U.S. tax return or claim tax benefits that require one. The immediate answer to what you should put if you don't have an ITIN on a tax form is that you cannot complete the form as intended without it. You must first apply for an ITIN using Form W-7, Application for IRS Individual Taxpayer Identification Number. This process establishes your identity for tax purposes when you are not eligible for a Social Security number (SSN).
Applying for an ITIN
An ITIN is issued by the IRS to individuals who need a U.S. taxpayer identification number but do not have and are not eligible for an SSN. This includes resident and non-resident aliens, their spouses, and dependents, who need to file a U.S. tax return or meet other tax-related exceptions.
Who Needs an ITIN?
Non-U.S. citizens and residents who have U.S. tax obligations but are not eligible for an SSN are the primary applicants. This can include:
- Non-resident aliens filing a U.S. tax return (e.g., Form 1040-NR).
- U.S. resident aliens (based on days present in the U.S.) who are not eligible for an SSN and have U.S. tax filing requirements.
- Dependents or spouses of U.S. citizens or resident aliens who are not eligible for an SSN and require identification for tax purposes.
- Individuals claiming tax treaty benefits.
- Individuals filing with a spouse or dependent who has an ITIN or SSN.
What You Need to Apply for an ITIN
To apply for an ITIN, you will need to complete Form W-7 and submit it with the required documentation. The key components are:
- Completed Form W-7: Ensure all sections are filled out accurately. You can download the latest version from the IRS website.
- Original or Certified Copies of Identification Documents: You must provide proof of your identity and foreign status. Acceptable documents include a passport, national identity card, U.S. driver's license, foreign driver's license, U.S. state identification card, and others listed on the Form W-7 instructions. A passport is generally the best option as it proves both identity and foreign status. If you submit original documents, the IRS will return them by mail.
- Federal Tax Return: In most cases, you must attach a valid U.S. federal income tax return to your Form W-7 application. There are some exceptions where a tax return is not required, such as claiming tax treaty benefits or for certain dependents.
How to Submit Your ITIN Application
There are three primary ways to submit your Form W-7 application:
- Mail Directly to the IRS: You can mail your completed Form W-7, tax return, and original or certified copies of your identification documents to the IRS address listed in the Form W-7 instructions. This is the most common method but can involve significant processing times.
- 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 verify your original identification documents and forward your application to the IRS. This method often expedites the process as CAAs handle the documentation verification, and you retain your original IDs. itin.net is a service that can assist you with this process.
- At an IRS Taxpayer Assistance Center (TAC): Some IRS TACs offer ITIN application processing by appointment. You will need to schedule an appointment and bring your original identification documents. Availability can be limited.
When an ITIN Might Not Be Immediately Required
While the question "what should u put if you dont have itin" implies an immediate need on a form, there are situations where you might not need an ITIN right away, or where an alternative identification number is used.
Employer Identification Number (EIN)
If you are setting up a business, such as a U.S. LLC, you may need an Employer Identification Number (EIN) instead of an ITIN for business purposes. An EIN is a nine-digit number assigned by the IRS to business entities operating in the United States for identification purposes. If you are forming a U.S. LLC, you will need an EIN for tax filings, opening a U.S. bank account, and conducting business. You can apply for an EIN by submitting Form SS-4, Application for Employer Identification Number, directly to the IRS or through a third-party service. An ITIN is for individuals, while an EIN is for businesses. You can learn more about obtaining an EIN on our /ein page.
U.S. LLC and Related Filings
When forming a U.S. LLC, you will need an EIN. For tax purposes, if the LLC is considered a disregarded entity for tax purposes and owned by a single foreign individual, the owner would report the income on their personal tax return, potentially requiring an ITIN. However, if the LLC is a partnership or corporation, it has its own tax filing requirements. Foreign-owned U.S. LLCs that are treated as partnerships or corporations for tax purposes must 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 or Form 1065. The owner of a disregarded U.S. LLC may also need to file Form 5472 if there are certain transactions with the owner. Forming a U.S. LLC is a common step for foreign nationals looking to conduct business in the U.S., and it often involves obtaining an EIN and potentially an ITIN for the owner. Further details on forming a U.S. LLC can be found on our /llc page.
Opening a U.S. Bank Account
Opening a U.S. bank account as a non-resident can be challenging. While some banks may require an ITIN or SSN, others, particularly those catering to international clients or fintech companies like Mercury, Relay, or Brex, may have alternative requirements. Some may accept a foreign passport and a utility bill with your foreign address. It is crucial to check with the specific bank about their documentation requirements for non-residents. Having a U.S. business entity, like an LLC with an EIN, often simplifies the process of opening a U.S. bank account. You can find more information on this topic on our /bank-account page.
Common Reasons for Not Having an ITIN
Individuals who search "what should u put if you dont have itin" often fall into specific categories:
- New to the U.S. Tax System: They may be new immigrants, foreign students, or individuals who have recently started earning U.S. source income but are not yet eligible for an SSN.
- No U.S. Tax Obligation Yet: Some individuals may be planning U.S. activities but have not yet triggered a U.S. tax filing requirement or a need for an ITIN.
- Unaware of Requirements: They might be filling out a form for a U.S. entity or service and are asked for an ITIN without understanding why it's needed or how to obtain one.
- Business vs. Personal Identification: Confusion between an ITIN (for individuals) and an EIN (for businesses).
Processing Times and What to Expect
Obtaining an ITIN involves a waiting period. The IRS processes Form W-7 applications at its Austin, Texas service center. The typical processing time can range from 7 to 11 weeks from the date the IRS receives your application. This timeframe can fluctuate based on the volume of applications the IRS is processing. If you apply through a CAA, they can submit your application on your behalf, and the IRS will communicate directly with you once the ITIN is assigned. Upon successful application, the IRS will mail you a notice containing your ITIN, typically Notice CP-565.
Common Mistakes to Avoid
When applying for an ITIN, several common mistakes can cause delays or rejections:
- Incomplete Form W-7: Missing information or incorrect details on the application form.
- Missing or Unacceptable Identification Documents: Not providing original or certified copies of required IDs, or submitting documents that are expired or not on the IRS list.
- Incorrect Tax Return Attachment: Attaching a state tax return instead of a federal one, or an outdated version of the federal tax return.
- Not Including a Tax Return When Required: Forgetting to include the federal tax return when it is a necessary part of the application, unless an exception applies.
- Using Expired Identification: Submitting identification documents that have passed their expiration date.
ITIN Renewal and Expiration
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 implemented a renewal program for ITINs that have not been used. If your ITIN falls into this category, or if you have an ITIN that was issued before January 1, 2013, you may need to renew it. The renewal process is similar to the initial application, requiring Form W-7 and updated identification documents. You do not need to renew your ITIN if you have used it on a federal tax return in the past three years. The IRS will notify you if your ITIN requires renewal.
Seeking Assistance
Navigating the U.S. tax system can be complex, especially for those unfamiliar with its requirements. If you are unsure about your tax obligations or the ITIN application process, seeking professional help is advisable.
Using a Certified Acceptance Agent (CAA)
As mentioned, Certified Acceptance Agents (CAAs) can significantly simplify the Form W-7 application process. They are trained and authorized by the IRS to assist with ITIN applications. Using a CAA means you can have your original identification documents verified on-site, eliminating the need to mail them to the IRS and wait for their return. This can save time and reduce the risk of losing critical documents. itin.net offers services to connect you with CAAs.
Consulting a Tax Professional
For complex tax situations, such as those involving foreign income, tax treaties, or specific U.S. business structures, consulting a qualified tax professional or attorney is highly recommended. They can provide personalized advice based on your unique circumstances and ensure compliance with all U.S. tax laws. You can learn more about the author's expertise at /about.
In summary, if you are asked for an ITIN and do not have one, you must apply for it using Form W-7, providing the necessary identification and tax documentation. If you are setting up a business, consider whether an EIN is more appropriate. For further questions or to initiate the ITIN application process, you can visit our contact page /contact or explore our Q&A index /qa for more information.