Title : The Facts About the Individual Taxpayer Identification Number (ITIN)
ITIN Application – Form W-7
An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service. An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service. You’ll need to have either a Social Security number (SSN) or an Individual Taxpayer Identification Number (ITIN). An ITIN is simply for the purpose of filing US taxes, and are for individuals who are not eligible or have a Social Security Number, but need to file US taxes. This goes for both resident and non-resident aliens (US foreigner) who have US tax filing requirements under the Internal Revenue Code.
Keep in mind that having an ITIN does not grant you work access or legal status into the US nor does it provide the opportunity to receive SSN benefits!
ITINs do not serve any purpose other than federal tax reporting.
An ITIN does not:
- Authorize work in the U.S.
- Provide eligibility for Social Security benefits
- Qualify a dependent for Earned Income Tax Credit Purposes
The purpose of an ITIN is for taxes – it provides no legal status in the United States. In some cases, though, an individual can also use an ITIN to open a bank account or obtain a driver’s license.
Some foreigners may be eligible for ansocial security number (SSN) if they are authorized to work within the US. However, the ITIN allows foreigners who aren’t eligible for an SSN to comply with their expat tax filing requirements in the US. These foreigners may have a tax-filing obligation for reasons such as:
- You have a requirement to furnish a federal tax identification number or file a federal tax return, and
- Non-resident alien who is required to file a U.S. tax return
- U.S. resident alien who is (based on days present in the United States) filing a U.S. tax return.
- Dependent or spouse of a U.S. citizen/resident alien
- Dependent or spouse of a nonresident alien visa holder
-
Non-resident alien claiming a tax treaty benefit
- Non-resident alien student, professor or researcher filing a U.S. tax return or claiming an exception
What is requireddocument for an Individual Tax Identification Number (ITIN)
When applying for an ITIN in advance of your tax return, you will need to provide the following documents as proof of your identity.
- An original (or a certified copy) of your passport is the only document the IRS will accept for both identity and foreign status. We never recommend sending original copies of your identification documents. If, for some reason you do not have a passport, you must provide the IRS with a combination of current documents that contain expiration dates.
- They will accept copies of two or more of the following documents together, as well as the passport:
- US driver’s license
- Civil birth certificate
- Foreign driver’s license
- US state ID card
- Foreign voter’s registration card
- US military ID card
- Foreign military ID card Visa
- US Citizenship and Immigration Services (USCIS) photo ID
- Medical records
- records (dependents and/or students – under 25 years old – only)
Step 1: Firstly, you will need to complete and sign Form W-7 as part of the ITIN application.
Step 2: Get copies of your identification documents certified
The next step would be to get copies of your identification documents certified. If you are in your home country outside of the US then this may be trickier as usually your responsible officer at your school can certify copies of your identification documents.
In these cases you may be able to use your home country passport office or you could make a reservation at your nearest United States Embassy/ Consulate or with a Certified Acceptance Agent. We Expedo Tax are one of the IRS official Certified Acceptance Agent who has with 100% assured acceptance done. (check out this link to Acceptance Agents outside the US).
Step 3: Send your application to the IRS
After you get your relevant documents certified, you can send your application to the IRS, accompanied by a signed W-7 form (also known as ‘Application for IRS Individual Tax Identification Number’).
There are three options for Get copies of your identification documents certified.
We Expedo Tax are one of the IRS official Certified Acceptance Agent who has with 100% assured acceptance. IRS-authorized Certifying Acceptance Agent: These services are available both inside and outside the U.S. In most cases you must make an appointment. Bring original documents to prove your eligibility.
Apply at a designated IRS Taxpayer Assistance Center: they will require you to make an appointment and provide original documents proving your eligibility. By choosing our service we will assist with nearest IRS Taxpayer Assistance Center and helps you in all filing needs. Preparing W7 and Tax return.
The IRS allows you to apply for an ITIN at the same time you fill out your tax return and file your taxes. To do so, you submit a W-7 form and complete a tax return. You’ll also need to provide original or certified copies of documents proving your identity and foreign status. By choosing our service we will assist with nearest IRS Taxpayer Assistance Centre and helps you in all filing needs. Preparing W7 and Tax return
ITIN Processing Time
The usual waiting time for your ITIN to be processed outside of peak times (January to April) is six to eight weeks however it will depend on when you apply.
Once you apply for an ITIN, you can expect to hear from the IRS about the status of your application within six to eight weeks. During peak tax season the timeframe could be significantly longer. That’s why we recommend you to apply for your ITIN as soon as possible!
To prevent delays, make sure you’ve provided correct information, and all required supporting documentation. Any incomplete or incorrect applications may take longer to process.
Do I Need to Renew My ITIN
Yes, an ITIN need to be re-validated every five years. If you don’t use your ITIN for three consecutive years, it’s considered expired.
Renewing your ITIN is the same process as applying for a new ITIN. However, if you mail in your renewal application, you can simply send along a form W-7 with supporting documents, without attaching a tax return.
If you need to file a tax return in 2021 and your ITIN has expired or will expire before you file in 2021, IRS recommends you submit your renewal application now to prevent potential delays in the processing of your return. If you use an expired ITIN on a U.S. tax return, it will be processed and treated as timely filed, but without any exemptions and/or credits claimed and no refund will be paid at that time. You will receive a notice explaining the delay in any refund and that the ITIN has expired.
Conclusion
An ITIN is an important document for filing tax returns. So once it is issued, keep it secure until it is expired or you no longer require it. When filing for an ITIN, it is advised to receive help from an experienced attorney.
For more information refer :
https://www.irs.gov/individuals/individual-taxpayer-identification-number
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