If a foreign national who needs to file a U.S. tax return but not eligible for a Social Security Number (SSN), the Internal Revenue Service (IRS) provides an alternative identification number called the Individual Taxpayer Identification Number (ITIN). This is a unique nine-digit number issued specifically for tax processing purposes.
What is ITIN
An ITIN is a tax processing number issued by the IRS to individuals who are required to have a U.S. taxpayer identification number but do not qualify for an SSN. This includes foreign nationals who earn income from U.S. sources, their spouses, and dependents who need to be included on a tax return. The ITIN does not grant work authorization, Social Security benefits, or immigration status. its sole purpose is to facilitate tax administration. For example, consider a foreign national working temporarily in the United States who receives income subject to U.S. taxation but is ineligible for an SSN due to their visa status. To properly report this income and file a tax return, they must apply for an ITIN by submitting IRS Form W-7 along with required identification documents. Once issued, the ITIN serves as their taxpayer identification number for all federal tax-related matters.
How to Apply for an ITIN
Complete Form W-7
Obtaining an ITIN begins with filling out Form W-7, the official IRS application for an Individual Taxpayer Identification Number. This step is crucial and requires careful attention to detail to avoid delays or rejections. Form W-7 can be downloaded directly from the IRS website or obtained from a tax professionals. For most first-time ITIN applicants, a completed U.S. federal income tax return (such as Form 1040 or 1040-NR) must be included with the W-7 form. This is because the IRS generally issues ITINs only when there is a tax filing requirement. If applying for multiple ITINs, like for a spouse and dependents each person must have a completed Form W-7. All W-7 forms for the family are attached to the same tax return. Leave the Social Security Number (SSN) field blank for each ITIN applicant; the IRS will assign the ITINs and fill them in during processing.
If we take an example of Alex, who is married and has two children. None are eligible for an SSN. When filing the family’s U.S. tax return, Alex completes a W-7 for himself, his spouse, and each child. All four W-7 forms are attached to the front of the family’s tax return, and the SSN fields are left blank. The IRS will assign ITINs for each family member and process the return.
Gather Required Identification Documents
Original documents or certified copies must be submitted to verify identity and foreign status. The passport serves as the primary document, as it simultaneously confirms both identity and foreign status. When a passport is provided, no additional documents are necessary. For individuals unable to submit a passport, at least two alternative documents are required. One document must include a photograph, such as a national ID card, U.S. driver’s license, or similar government-issued identification. The second document may include non-photographic records like a birth certificate, residency permit, or other official documentation.
Here most importantly Submitted passports must include a legible date of entry to the U.S. Passports lacking this entry date are deemed invalid for this process. This rule applies strictly, regardless of other passport details.
Obtain Certification of Documents
Certified copies are required to ensure authenticity and must be issued directly by the government agency or authorized entity responsible for the original document.
Certification can be completed through several recognized authorities:
- The original issuing government agency provides certification, ensuring authenticity and official status of the document.
- A Certified Acceptance Agent (CAA) is authorized to review and certify documents for submission.
- Certification services are also available at United States Embassies or Consulates, which typically require scheduling an appointment in advance.
Submitting certified copies is generally safer for those requiring the prompt return of important documents, as original documents sent by mail may be delayed or at risk of loss. Certified copies serve as legally recognized substitutes for originals, provided they meet the standards set by the IRS and are transmitted directly from the certifying authority.
Submit the ITIN Application
A complete ITIN application includes Form W-7, a federal tax return if required and all supporting identification documents. There are several submission methods are available to accommodate different needs and preferences.
Submission Methods
E- Mail: The application comprising Form W-7, the tax return, and supporting documents can be sent directly to the IRS ITIN Operation in Austin, Texas. This method is suitable for applicants who have gathered all necessary documents and prefer to handle the process independently. Mailing the package requires careful attention to include original or certified copies of identification documents, as required by the IRS.
In Person: Applications may be submitted in person at a designated IRS Taxpayer Assistance Center. An appointment is generally required. This approach allows IRS staff to review documents and answer questions on-site, which can help reduce errors or omissions in the application. After the review, original documents are typically returned immediately, providing added security for valuable paperwork.
Through a Certified Acceptance Agent (CAA)
Certified Acceptance Agents are authorized by the IRS to assist with ITIN applications. A CAA can verify original documents and forward the completed application to the IRS on behalf of the applicant. This method is particularly useful for those who want professional guidance or need document verification without mailing originals. CAAs are available both in the U.S. and abroad, making this a flexible option for international applicants.
Additional Tips
- Apply early: Submit your ITIN application as soon as you have a U.S. tax filing or reporting requirement to avoid delays.
- Renewals: ITINs expire and must be renewed if not used on a federal tax return for three consecutive years or if issued before 2013 and not renewed yet.
- Do not send original documents unless necessary, Certified copies are preferred to avoid losing important documents.
- If applying outside the U.S You can apply by mail or through a U.S. Embassy or Consulate, or a Certified Acceptance Agent abroad.
- Students and scholars: If applying alongside your tax return, note that document certification by school officials is no longer accepted; use other certified methods.
