Gokce Tandogdu
ITIN Specialist, itin.net
Your ITIN may not be working because it was never assigned, it expired, it was revoked, or you are trying to use it for a purpose for which it is not intended.
A valid ITIN (Individual Taxpayer Identification Number) is issued by the IRS to individuals who need a U.S. taxpayer identification number but do not have, and are not eligible to obtain, a Social Security number (SSN). These individuals include non-resident aliens filing U.S. tax returns, resident aliens (based on days present in the U.S.) filing U.S. tax returns, and dependents or spouses of U.S. citizens/resident aliens. The primary reason an ITIN is issued is for tax processing. If you're encountering issues where your ITIN appears "not working," it generally means the IRS or another entity has not been able to validate it or process a transaction using it.
ITIN Assignment and Validation Issues
An ITIN is not automatically assigned upon application; it is issued after the IRS processes your application (Form W-7) and verifies your tax return or other required documentation. If your ITIN application was incomplete, contained errors, or lacked sufficient documentation, the IRS may not have been able to assign you an ITIN. This means you have no valid ITIN to use.
If you believe you applied for an ITIN but never received one, you should verify if the IRS sent a notice or if the application was returned. Sometimes, applications are rejected due to missing identification documents or incorrect information. If you are unsure whether an ITIN was assigned, you can contact the IRS directly. However, the IRS cannot provide your ITIN over the phone for security reasons. You would need to submit a new Form W-7, Application for IRS Individual Taxpayer Identification Number, along with the necessary supporting documents to have an ITIN assigned. This includes original identification documents or certified copies from the issuing agency.
When you apply for an ITIN, you must submit either an original identification document or a certified copy from the issuing agency. Accepted documents include passports, national identity cards, and birth certificates. If you are not applying through a Certified Acceptance Agent (CAA), you can mail your original documents to the IRS or present them in person at an IRS Taxpayer Assistance Center (TAC). However, TACs do not issue ITINs and can only accept applications. Mailing original documents carries a risk of loss. Using a CAA, like itin.net, can simplify this process by verifying your original documents and sending copies to the IRS, eliminating the need to mail your originals.
Expired ITINs
Many ITINs have expiration dates. The IRS began a phased expiration of ITINs starting with those with the first digit 78 and 79 (e.g., 78X-XX-XXXX or 79X-XX-XXXX). Subsequently, ITINs with the first digit 80, 81, 82, 83, 84, 85, 86, 87, 88, and 89 have also expired. An ITIN with an expiration date will not be accepted by the IRS for tax filing purposes. If your ITIN falls into these categories and you need it for tax filing, you must renew it.
To renew an expired ITIN, you must file a U.S. federal income tax return. You cannot renew an ITIN solely by submitting Form W-7 without a corresponding tax return. The tax return must be filed with the IRS during the tax year for which you are claiming a tax benefit or need to report income. You will need to submit Form W-7 along with your tax return and supporting identification documents, similar to the initial application process. The IRS will then reassign your existing ITIN if it is still valid or issue a new one if necessary.
If you are a non-resident alien who needs an ITIN to claim tax treaty benefits, you must file a U.S. tax return to claim those benefits. The IRS requires that you attach a U.S. federal income tax return to your Form W-7 application. This means you cannot obtain an ITIN solely for the purpose of accessing treaty benefits without filing a tax return. The tax return must be complete and accurate, detailing the income and any applicable treaty provisions. For example, if you are claiming treaty benefits on certain types of income, you must report that income and the claimed treaty reduction on your tax return. Failure to do so will result in the denial of your ITIN application or the invalidation of your existing ITIN if it's being used improperly.
Revoked or Invalidated ITINs
The IRS can revoke or invalidate an ITIN if it is determined that the ITIN was assigned improperly or is no longer needed. This can happen if you later become eligible for and obtain a Social Security number (SSN). Once you have an SSN, you must use it for all tax purposes and your ITIN becomes invalid. Continuing to use an ITIN after obtaining an SSN can lead to processing delays and errors.
Another reason an ITIN might be invalidated is if it was obtained fraudulently. The IRS has sophisticated systems to detect fraudulent applications, and if fraud is suspected, the ITIN can be revoked. If your ITIN has been revoked, you will receive a notice from the IRS, usually a CP-48 notice, explaining the reason for revocation and any actions you need to take. If you believe the revocation was in error, you must respond to the IRS notice with the required information and documentation.
If your ITIN is no longer valid because you obtained an SSN, you need to inform the Social Security Administration (SSA) and the IRS. You should file your tax return using your SSN. For any future tax filings, ensure you use your SSN exclusively. If you previously used your ITIN for certain government benefits or financial accounts, you may need to update your information with those institutions to reflect your SSN.
Incorrect Usage of ITIN
An ITIN is primarily for federal tax reporting. It is not a substitute for an SSN for employment purposes. You cannot legally work in the United States using an ITIN. If an employer has told you to get an ITIN to work, they are mistaken. The correct documentation for employment eligibility in the U.S. is a Social Security card or other authorized work permits. Using an ITIN for employment purposes is a violation of immigration and tax laws.
Similarly, an ITIN is not a general identification number for all purposes. While some financial institutions may accept an ITIN for opening accounts, it is not universally accepted as primary identification. If a bank or other institution rejects your ITIN, it may be because they have specific policies against using ITINs for certain services or require additional documentation.
If you are trying to open a U.S. bank account and are encountering issues with your ITIN, it's often because the bank's internal policies require an SSN or a different form of identification. Some banks, particularly those catering to international clients, are more accustomed to ITINs. Services like itin.net can help you understand the process of opening a U.S. bank account, which often requires more than just an ITIN, especially if you are not physically present in the U.S. You may need to look into options like online banks or those that specifically support non-resident account opening.
An ITIN is also not a business identification number. For business-related tax filings, such as those for a U.S. LLC, you will typically need an Employer Identification Number (EIN). If you are forming a U.S. LLC, you will need to obtain an EIN from the IRS. You can apply for an EIN using Form SS-4, Application for Employer Identification Number. An ITIN can be used by the responsible party to apply for an EIN if they do not have an SSN, but the ITIN itself is not the business identifier. The EIN is what identifies the business entity for tax purposes. Without an EIN, your U.S. LLC cannot operate effectively for tax compliance, especially if it has employees or is a disregarded entity with specific reporting requirements like Form 5472.
Common Reasons for Application Rejection
When asking "why is my itin number not working," a common underlying issue is that the initial Form W-7 application was rejected. Rejections often stem from incomplete applications, missing or uncertified identification documents, or incorrect tax return information. Ensure all sections of Form W-7 are completed accurately. Pay close attention to the section requiring your U.S. federal income tax return, as this is mandatory for most applicants.
Failure to provide verifiable identification is another frequent cause of rejection. If you submit photocopies instead of original documents or certified copies from the issuing agency, the IRS will likely reject your application. If you are using a CAA, they are trained to ensure your documentation meets IRS standards. If you are mailing your documents, it is highly recommended to get them certified by the issuing agency to avoid loss of originals. The IRS provides specific guidelines on acceptable identification documents and certification methods on its website.
Incorrectly claiming tax treaty benefits can also lead to ITIN rejection. If you are applying to claim benefits under a tax treaty, you must ensure you meet all the requirements of that specific treaty article and accurately report the income and claimed benefits on your tax return. Misinterpreting treaty provisions or failing to provide the necessary documentation to support your claim can result in your Form W-7 being denied. It is advisable to consult tax resources or a tax professional familiar with U.S. tax treaties if you are unsure about eligibility or application procedures.
Steps to Resolve an "Unworking" ITIN
If you suspect your ITIN is not working due to an IRS processing error or a misunderstanding of its status, the first step is to verify its validity. You can request an ITIN Trace from the IRS by writing to them and providing your full name, address, and any known ITIN. The IRS will search its records and respond if an ITIN was assigned. However, this process can take several weeks.
If the ITIN trace confirms an ITIN was assigned but you still face issues, you may need to amend a prior tax return or file a corrected return. If the issue is with a financial institution, contact them directly to understand their specific requirements. They might require additional documentation or have alternative identification procedures for non-residents.
If your ITIN has expired, you must renew it by filing a federal income tax return. Gather your required identification documents (original or certified copies) and complete Form W-7 along with your tax return. Submit both to the IRS. This process can take the IRS 7-11 weeks to process during peak seasons, and longer during off-peak times. Using a CAA can expedite the initial verification of your documents and submission, but the IRS processing time remains the same.
If you never received an ITIN, or if your application was rejected, you will need to reapply using Form W-7. Ensure you address the reasons for the previous rejection. This may involve obtaining new identification documents, ensuring your tax return is complete, or seeking assistance from a CAA to correctly prepare and submit your application. The process of obtaining an ITIN from scratch can take up to 11 weeks after the IRS receives your complete application package.
When to Seek Professional Assistance
Navigating the complexities of U.S. tax laws and the ITIN application process can be challenging, especially for those unfamiliar with the U.S. tax system. If you are unsure about your eligibility for an ITIN, the correct documentation to provide, or how to complete Form W-7 and your U.S. tax return, seeking professional help is advisable. Certified Acceptance Agents (CAAs) are individuals or entities authorized by the IRS to assist taxpayers in obtaining ITINs. They can help verify your identity documents and review your application package before submission.
itin.net, for example, offers services to assist individuals in obtaining their ITINs. Our specialists understand the nuances of the application process and can help ensure your submission is complete and accurate, reducing the likelihood of rejection. This is particularly helpful if you are applying from outside the U.S. and cannot easily present original documents to the IRS directly.
For complex situations, such as claiming foreign tax credits, navigating tax treaty benefits, or dealing with U.S. business structures like a U.S. LLC, consulting a qualified tax professional or an Enrolled Agent is recommended. They can provide tailored advice based on your specific circumstances and ensure compliance with all relevant tax regulations. If you are planning to establish a U.S. business, you will likely need an EIN in addition to an ITIN. Services like itin.net can guide you through the EIN application process, and information on setting up a U.S. LLC can be found at /llc.
Remember, the IRS issues ITINs solely for tax administration purposes. They do not confer any right to work in the U.S. or provide any immigration benefits. If your ITIN is not working, it is crucial to identify the specific reason—whether it's an expired status, an application error, or improper usage—and take the necessary steps to rectify the situation, often by reapplying or renewing through a correct tax filing. For personalized guidance on your ITIN application or renewal, consider reaching out to a specialist. You can learn more about our expertise at /about.