Individual Tax identification Number-ITIN
ITIN vs SSN
An Individual Taxpayer Identification Number (ITIN) is a 9-digit Tax ID issued by the Internal Revenue Service (IRS). The IRS is the Federal Income Tax Department in the United States. An ITIN helps individuals to comply with tax laws in the US. ITINs are issued regardless of immigration status because both resident and non-residents may have US Federal tax filing and payment responsibilities under the Internal Revenue Code. An ITIN is also used by individuals who are required to have a Tax ID but are not eligible for a Social Security Number (SSN).
An SSN is only issued to US residents or to resident aliens who are authorized to work in the US.
Sometimes students, on an F-1 visa, may get an SSN in order to take education tax credit if they work part-time and file tax returns. Those individuals who are on a non-work temporary visa, such as the ESTA, are not permitted to apply for an SSN.
Businessmen and investors, on E1/E2 and EB-5 visas, receive SSNs but these SSNs are different than the SSNs issued to US citizens and resident aliens
Benefits of Having an ITIN ?
If you have any one of the following points, you must have an ITIN
- File a tax return using an ITIN.
- Register a company (C-Corp or LLC) in the US.
- Open up a physical bank account in the US if you have a valid visit visa. You may use ITIN for virtual bank account opening as well.
- Show proof of residency - At some point in the future, an immigrant may need to prove how long he or she has been in the United States and having a tax return filed using an ITIN is one way to show that.
- Eligibility for an e-commerce business - ITIN enables foreign entrepreneurs to fulfill some application requirements in order to be eligible for E-Commerce businesses such as Amazon.
- Resolve problems for PayPal account operation.
- Securing a driver’s license - Some states have allowed the ITIN to be used instead of an SSN in order to receive a driver’s license, driver’s permit, or temporary driver’s license.
- Purchase real estate in the US.
Following are the reasons to apply for an ITIN:
- Non-resident alien who is required to file a US tax return
- US resident alien who is (based on days present in the United States) filing a US tax return
- Dependent or spouse of a US citizen/resident alien
- Dependent or spouse of a non-resident alien visa holder
- Non-resident alien claiming a tax treaty benefit
- Non-resident alien student, professor, or researcher filing a US tax return or claiming an exception
AN ITIN DOES NOT ALLOW TO
Apply for an ITIN
All you need is to make an appointment with us. We will certify your identification documents A Certifying Acceptance Agent will sign your documents. Your ITIN application will be mailed out directly to the ITIN operations Unit. We have a direct line of contact with the IRS to check the status of your application.
You can personally take an appointment at the US Embassy in your country or if you are in the US, you can visit a nearby IRS office in your town for Identity Verification. BUT, You still need a professional to prepare the paperwork to ensure there are no mistakes.
ITIN Needs Renewal
If you haven’t used your ITIN in the past three years, it will expire. There are some rules, as defined by the IRS, which informs you when your ITIN is going to expire For example, ITINs with middle digits of 83, 84, 85, 86 or 87 (e.g. 9NN-83-NNNN) will also expire at the end of 2019.