Gokce Tandogdu
ITIN Specialist, itin.net
The Internal Revenue Service (IRS) is the sole issuer of Individual Taxpayer Identification Numbers (ITINs).
The IRS Directly Issues ITINs
The IRS issues ITINs to individuals who are not eligible for a Social Security number (SSN) but require a U.S. taxpayer identification number for tax purposes. This includes non-resident aliens filing U.S. tax returns, resident aliens filing U.S. tax returns, dependents, and spouses of U.S. citizens or resident aliens, as well as non-resident alien owners of U.S. businesses.
The primary purpose of an ITIN is to facilitate U.S. tax compliance for individuals who cannot obtain an SSN. Without an ITIN, these individuals cannot file U.S. tax returns, claim tax benefits, or meet certain other tax-related obligations. The question of "who issues ITIN?" is straightforward: only the IRS has the authority to assign these numbers.
Eligibility for an ITIN
To be eligible for an ITIN, you must have a U.S. tax filing requirement or a valid tax-related reason for needing a U.S. taxpayer identification number. Common reasons include:
- Filing a U.S. federal income tax return (e.g., Form 1040-NR for non-resident aliens).
- Claiming tax treaty benefits.
- Being a dependent or spouse of a U.S. citizen or resident alien.
- Being a dependent or spouse of a non-resident alien alien filing a U.S. tax return.
- Owning a U.S. business that requires tax reporting (e.g., a U.S. LLC or corporation).
- Meeting certain other U.S. tax obligations.
You cannot apply for an ITIN if you are eligible for an SSN. If you are eligible for an SSN, you must apply for one through the Social Security Administration (SSA).
The ITIN Application Process: Form W-7
The application for an ITIN is made using Form W-7, Application for IRS Individual Taxpayer Identification Number. This form collects personal information, including your name, address, foreign tax identification number (if applicable), and the reason for applying for an ITIN. You must also provide original or certified copies of documentation proving your identity and foreign status.
Required Documentation
To support your Form W-7 application, you must submit documentation that verifies both your identity and your foreign status. The IRS accepts a combination of documents, but typically, applicants provide a passport as the primary document, as it proves both identity and foreign status. If a passport is not available, other documents can be used, such as:
- National identity card (must contain name, photograph, current address, date of birth, and expiration date).
- U.S. driver's license.
- Foreign driver's license.
- Civil birth certificate (for dependents under 18).
- Foreign voter's registration card.
- U.S. state identification card.
- Foreign military identification card.
- National identification card issued in your country of origin.
- U.S. Citizenship and Immigration Services (USCIS) photo identification.
- U.S. visa.
Each document must be original or certified by the issuing agency. If you submit copies, they must be certified by the agency that issued the document. The IRS may also accept certified copies from a Certified Acceptance Agent (CAA), which is an option many non-residents find convenient.
Submitting Form W-7
There are several ways to submit your Form W-7 application and supporting documents:
- By Mail: You can mail your completed Form W-7, along with original or certified copies of your identification documents, directly to the IRS ITIN Operation at the address specified in the Form W-7 instructions. Be aware that mailing original documents carries a risk of loss or damage, and the IRS will retain them until the ITIN is assigned.
- Through an Acceptance Agent: You can apply through an IRS-authorized Acceptance Agent. These agents are trained by the IRS to help applicants complete their Form W-7 and verify their original documentation. They then forward the application to the IRS for processing. This is often the preferred method because the agent can review your application for completeness and return your original documents to you on the same day.
- At an IRS Taxpayer Assistance Center (TAC): Some IRS TACs offer ITIN application services by appointment. You must call to schedule an appointment and bring your original or certified documents. However, not all TACs provide this service, and availability can be limited.
Certified Acceptance Agents (CAAs)
A Certified Acceptance Agent (CAA) is an individual or business entity authorized by the IRS to assist taxpayers in applying for ITINs. CAAs can authenticate your original identification documents and forward your Form W-7 application to the IRS. The significant advantage of using a CAA is that they can return your original documents to you immediately after reviewing them, eliminating the risk of mailing sensitive personal identification to the IRS.
Using a CAA, such as itin.net, can streamline the process. A reputable CAA will ensure your application is complete and accurate, reducing the chances of delays or rejection. They act as a liaison between you and the IRS, making the application process more manageable, especially for those unfamiliar with U.S. tax procedures.
Processing Times and What Happens Next
Once the IRS receives your completed Form W-7 application and supporting documentation, it typically takes 7 to 11 weeks for processing, especially during peak tax filing seasons. The IRS will mail you a Form CP-565, ITIN Assignment Letter, which contains your assigned ITIN. Keep this letter and your ITIN in a safe place, as you will need it for all future U.S. tax filings.
If your application is incomplete or lacks the necessary documentation, the IRS will send you a notice explaining the deficiencies. You will then have an opportunity to correct the errors and resubmit your application.
Common Mistakes and Delays
Several common mistakes can lead to delays or rejection of your Form W-7 application:
- Incomplete Application: Missing information on Form W-7 is a frequent cause of rejection. Ensure all fields are accurately completed.
- Missing or Unacceptable Documentation: Not providing the required original or certified identification documents, or submitting documents that do not meet IRS requirements, will cause delays.
- Incorrect Tax Return Information: If you are applying with a tax return, ensure the return is complete, signed, and accurate. Errors on the associated tax return can hold up your ITIN application.
- Not Having a Tax Filing Requirement: Applying for an ITIN without a legitimate tax filing requirement or tax-related reason is grounds for rejection.
- Incorrectly Certified Copies: If you submit copies of documents, they must be certified by the issuing agency or an authorized CAA. Uncertified copies will not be accepted.
ITIN Renewal and Expiration
ITINs do not expire, 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 issue new ITINs, and if your ITIN is affected by a renewal or re-designation, you will be notified. If your ITIN becomes invalid, you will need to apply for a new one using Form W-7 and resubmit your supporting documentation.
When to Seek Professional Help
While the IRS provides instructions for applying for an ITIN, the process can be complex, especially for individuals with unique circumstances or those unfamiliar with U.S. tax law. If you are unsure about your eligibility, the required documentation, or how to complete Form W-7, seeking assistance from a qualified tax professional or an IRS-authorized Certified Acceptance Agent (CAA) is highly recommended.
For non-residents planning to establish a U.S. business, obtaining an ITIN is often the first step. Following the ITIN application, you may need to apply for an Employer Identification Number (EIN) for your business using Form SS-4, especially if you plan to hire employees or open a U.S. bank account. Establishing a U.S. LLC also requires specific steps, including obtaining an EIN and potentially filing Form 5472 if you are a single-member LLC owned by a foreign person. Opening a U.S. bank account for your business is another crucial step, and many banks require both an EIN and an ITIN for the responsible party. Services like Mercury, Relay, or Brex are popular choices for non-residents seeking U.S. banking solutions.
Navigating these requirements can be daunting. Consulting with a specialist can ensure your applications are processed smoothly and accurately, preventing costly errors and delays. For more information on obtaining an ITIN, you can refer to the comprehensive resources available on itin.net.