An Individual Taxpayer Identification Number is a United States tax processing
number issued by the Internal Revenue Service. It is a nine-digit number that
begins with the number 9 and generally has a range of 70 to 99 in the fourth
and fifth digit, example 9XX-70-XXXX or 9XX-99-XXXX. ITIN numbers exist beyond
these ranges, although still beginning with 9. They are issued to big groups of
US corporation foreign employees, and the remaining digits correspond directly
to the company's internal employee identifier. The IRS issues ITINs to
individuals who are required to have a taxpayer identification number but who
do not have, and are not eligible to obtain, a Social Security Number.
ITINs are issued regardless of immigration status because both resident
and nonresident aliens may have Federal tax return and payment responsibilities
under the Internal Revenue Code. Individuals must have a filing
requirement and file a valid federal income tax return to receive an ITIN,
unless they meet an exception. An ITIN application cannot be filed
electronically. The application, in most cases, should be attached to a valid
federal income tax return. The program was created in 1996 for the
purpose of tax filing of individuals without a social security account
number. Receiving an ITIN number does not in itself confer the right to work
and receive income in the United States. In 2006 1.4 million people used ITIN
when filing taxes. Federal tax law prohibits the IRS from sharing data with
other government agencies including the Department of Homeland Security,
assuring unauthorized aliens that the tax information will be confidential and
will not be used to initiate removal procedures.
ITINs are also used by real estate brokers to facilitate mortgages for
unauthorized aliens. In addition to use by unauthorized aliens, ITINs are used
by foreign investors in United States real estate. Such investors need ITINs
to file federal and state tax returns to report rental income.
An individual who meets eligibility requirements can file an ITIN
application himself or herself. This involves submitting IRS form W-7, which
records biographical information, along with specified types of valid supporting
ID and a tax return. The applicant can apply directly or file with a certifying
acceptance agent, who can assist with the application process for a fee. ITINs
can also be issued for a spouse or dependents, if documentation and
signature requirements are met and they are claimed on a valid tax return.
Effective June 22, 2012 the IRS began requiring most applicants, even those
using acceptance agents, to submit original supporting documents or copies
certified by their issuing agency. The IRS will not accept notarized copies of
the passport for ITIN application. In 2012 the IRS indicated that ITINs
would expire after 5 years, and in 2014, they amended that policy to only expire
ITINs if they had not been used in the last 5 years. Under this revised policy
all ITIN's must be used to file a return or they will expire and be reassigned.
This now includes those issued before 2013. These changes go into effect in
2016. References
^ "General ITIN Information". May 25, 2011. Retrieved September 28, 2011.
^ NY Times, April 16, 2007 ^ NY Times,April 15, 2003
^ Alien vs Immigrant Comparison Chart ^ U.S. Tax Program for Illegal
Immigrants Under Fire NPR, March 5, 2007.
^ Boston Globe, February 17, 2008 ^ Politics Undercut Mortgages For
Illegal Workers by Nancy Mullane. Morning Edition, National Public Radio.
November 4, 2008. ^ "Individual Taxpayer Identification
Number". Irs.gov. Retrieved September 25, 2012.
^ Unused ITINS to Expire After Five Years; New Uniform Policy Eases Burden
on Taxpayers, Protects ITIN Integrity IRS, June 30, 2014.
External links More about ITINs from the IRS official
site