Useful Tips

What is ITIN and do I need it?

Tax Identification Number (TIN) is a nine-digit number used as a tracking number by the United States Internal Revenue Service (IRS). Social Security Numbers (SSNs) are tax identification numbers for individuals, and the Social Security Administration (SSA) issues them in the format XXX-XX-XXXX. Employer tax identification numbers are issued to IRS companies. These numbers also contain nine numbers, but they read as XX-XXXXXXX. Taxpayer Identification Number is information about all tax returns filed with the IRS.

TURN OFF “Tax Identification Number - TIN”

TINs come in several different forms. Individuals are assigned TINs in the form of SSNs, while enterprises, such as corporations and partnerships, are assigned employer identification numbers (EINs). Trusts, proxies and other non-banking entities receive direct tax identification numbers. Other types of TINs include an Individual Tax Identification Number (ITIN), Adoption Tax Identification Number (ATIN), and Tax Identification Number (PTIN).

The IRS uses tax identification numbers to track taxpayers. The IRS issues all tax identification numbers, with the exception of SSN. Filers must include the number of documents related to taxes and when applying for benefits.

Social Security Numbers

SSN is the most common form of tax identification number. The child must have an SSN before the parent can demand that the child is dependent on income tax purposes, so most parents voluntarily apply for this number on behalf of their children. SSA processes applications for free, but there are also paid services that offer filling out applications for new parents.

Tax identification number

The IRS began to require PTHIN transfers for each file return to prepare tax returns starting January 1, 2011. Prior to this date, the use of PTHIN was optional. Any drafter who charges for the full or part of the tax return or refund for another person must have and use the PTI.

US tax number for non-residents

Since non-resident aliens (as well as some residents) cannot legally obtain SSN, and since US law requires tax identification of all federal tax returns For all others who are required to pay taxes, the IRS issues an ITIN.

Spouses and dependents of ITIN holders must apply for their separate number.

Unlike SSN, ITIN does not entitle you to work in the United States, nor can it be used to identify you. Also, according to ITIN, it is impossible to obtain social benefits or tax benefits for labor income. This number is assigned only for processing federal taxes - nothing more.

For these reasons, the IRS does not issue an ITIN card, as does the SSA with a Social Security Number.

Each taxpayer must have either SSN or ITIN, but cannot have both numbers at once.

How to get ITIN?

You can get ITIN directly at the IRS office by filling out a simple one-page form W-7 - an application for an individual tax identification number. The beginning of Form W-7 states that applicants do not request an ITIN if they already have an SSN, and that “obtaining an ITIN does not affect your immigration status or your right to work in the United States.”

Applicants are required to identify themselves as W-7 by selecting one item from the following list:

non-resident alien who needs ITIN to receive benefits under an international tax agreement,
non-resident alien applying for a U.S. tax return
U.S. alien (based on number of days in the U.S.) filing a federal tax return,
US citizen or alien dependent
spouse of a U.S. citizen or alien,
A foreign student, professor, or non-resident researcher filing a U.S. federal tax return or tax exemption requirement,
dependent / spouse of a non-resident alien holding a US visa.

You DO NOT need ITIN if:

you have an SSN,
you don’t need to fill out a federal tax return,
you will not be listed as a dependent on another person’s federal tax return.

Note: Any ITIN that has not been used at least once every three years will automatically expire. A new ITIN can be obtained by submitting a new W-7 form to the IRS.

Gregory Finkelson, attorneys at ACS Law Offices and all staff at American Corporate Services, Inc. ready to answer your questions and make sure that you have all the information you need to get ITIN in case you need it.

Form W-7 (U.S. Internal Revenue Service Assignment of Tax Identification Number)

Disclaimer: This article contains general information and does not include legal advice on a specific case.