What is ITIN? 

Individual Tax Identification Number (ITIN)

An individual taxpayer identification number (ITIN) is a tax processing number, issued by the Internal Revenue Service, for resident and non-resident aliens, their spouses, and their dependents, if they are not eligible for a Social Security number. The ITIN is a nine-digit number beginning with the number 9, has a range of numbers from 50 to 65, 70 to 88, 90 to 92, and 94 to 99 for the fourth and fifth digits, and is formatted like a Social Security number (like this: 9XX-7X-XXXX). Only individuals who have a valid tax filing requirement or are filing a U.S. federal income tax return to claim a refund of over withheld tax are eligible to receive an ITIN. ITINs are used for tax purposes only and are not intended to serve any other purpose.

The ITIN does not authorize you to work in the U.S. or to receive Social Security benefits, is not valid for identification outside the tax system, and does not change your immigration status.

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Who requires ITIN (US Tax ID)?

If you do not have a U.S. Social Security number (SSN) and are not eligible to obtain an SSN, but you are required to file a U.S. federal income tax return, be claimed as a spouse or dependent on a U.S. tax return, or furnish a tax identification number for any other federal tax purpose, you need an ITIN. You must have a valid filing requirement and file an original valid U.S. federal income tax return with your ITIN application unless you meet one of the exceptions listed below. Even if you meet one of the exceptions to filing a tax return, you must still have a valid tax purpose.

Here are some examples of who needs an ITIN:

• A U.S Citizen/Resident Alien who elects to file a joint U.S. federal income tax return – Form 1040 with a spouse (who is a foreign national).

• A U.S Citizen/Resident Alien who wants to claim dependents ( Foreign national child ) on 1040 U.S. federal income tax return

• Foreign national claiming reduced tax withholding rate under an income tax treaty (Form 1042S, 1099 reporting).

• Foreign National selling the U.S.A based property claiming a refund on tax withheld or exemption from withholding on the sale of U.S. real property (Form 8288A – 15% FIRPTA withholding).

• A nonresident alien individual (Partner in US LLP, LLC Owners, US Rental Income, Las Vegas Gambling winnings) not eligible for an SSN who is required to file a U.S. federal income tax return or who is filing a U.S. tax return only to claim a refund (Form 8805).

• Foreign National operating US registered LLC business

• Foreign National who is (Author, Artist, Skilled, Sports skilled performer) receiving income USA based sources.

• Foreign National seeking exemption from withholding on compensation from Independent personal services (Form 8233).

• Foreign Nationals making online sales income in the USA market via Amazon.

• Foreign National who is beneficiary of 401k plan distribution from Fidelity etc (Form 1099 R – excess tax withholding re-claim).

• Foreign National requiring ITIN to claim Massachusetts Unclaimed Property from the commonwealth of Massachusetts.

• Foreign National who is a U.S Court-appointed Executor for the beneficiary of the distribution of deceased property or US Trust.

• Foreign National who is having a home mortgage on U.S real property.

 

How Do You Get An ITIN?

You must properly complete Form W-7 and attach a valid U.S. federal income tax return unless you qualify for an exception. You must also attach documentation to establish your identity and your connection to a foreign country. The one standalone document that satisfies both identity and foreign status is a current Foreign country passport. If you do not have a current Foreign country passport, one of the other documents from the list (on Form W7 instruction ) must be provided to prove foreign status and an additional document must be provided to prove identity.

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The Non-CAA Process

Only original documents, or “certified” copies of the documents are accepted. A certified document is one that the original issuing agency provides and certifies as an exact copy of the original document and contains an official stamped seal from the agency (the process of obtaining certified documents through the issuing agency is often expensive, time-consuming, or sometimes not available). Don’t try to send a notarized” copy. A notarized document is one that the taxpayer provides to a public notary who bears witness to the signing of the official document and affixes a seal assuring that the document is legitimate. The notarized documents will not be accepted unless you are a U.S. citizen or resident member of the U.S. military and are submitting documentation for a dependent. The IRS promises to return original documents within 60 days through the regular mail service. However, it’s always very risky to send original documents to the IRS, especially if you must rely on foreign postal systems (we have heard from our clients that they sent original documents to IRS and still had ITIN rejection for submitting incorrect supporting documents and on certain cases passports gone missing in postal transit so they hired our service for the second time to avoid the delays/risk documents loss, etc).

The Certified Acceptance Agent Process (If you are based outside of the U.S.A) – Please refer to FAQ Section on CAA Process

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How Do You Renew an Expired ITIN?

The renewal process is the same as the application process, except you do not need to attach your tax return.  If you have an expired ITIN, it would be prudent to renew it before filing your tax return in 2019. Otherwise, you cannot electronically file your return. Also, you could face a delay in your refund and may be ineligible for certain tax credits, such as the Child Tax Credit. Your ITIN must be renewed by the due date for filing your return to claim this credit. The IRS emphasizes that no action is needed by ITIN holders if they don’t need to file a tax return next year. If your ITIN has not been used on a federal tax return at least once in the last three years, it will no longer be valid for use on a tax return unless you renew it. In addition, if your ITIN was issued prior to 2013 and its middle digits are 73, 74, 75, 76, 77, 81, or 82 (example: 9XX-73-XXXX) it will need to be renewed to file a tax return in 2019. The IRS has had a rolling renewal schedule since 2016. ITINs with middle digits 70, 71, 72, 78, 79 and 80 already expired in 2016 and 2017. However, these ITINs can still be renewed. 

To make this renewal effort easier and reduce paperwork, the IRS offers a family option for ITIN renewal. If any individual receives a renewal letter from the IRS, they can choose to renew the ITINs of all of their family members at the same time rather than doing them separately over several years. Family members include the tax filer, the spouse and any dependents claimed on their tax return.

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You’re Just One Step Away to get your ITIN