When you need an ITIN

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What You Need To Know About The ITIN Number

Resident and nonresident aliens are sometimes required to file tax returns with the Internal Revenue Service. In a person is required to file for tax returns and the person is not eligible for or do not have the Social Security Number (SSN), then these individuals use the Individual Taxpayer Identification Number (ITIN) to file their returns. Foreign investors in the United States real estate also need to use the ITIN to declare their tax returns. This is the case if they cannot declare their tax returns using the SSN.

itin number

Itin number application

The ITIN is a tax processing number issued by the IRS for tax purposes only. In any way, the ITIN cannot be used for identification purposes outside of the IRS. It is important for resident and nonresident aliens to investigate whether they are eligible to apply for the SSN before making an application for the ITIN.

The ITIN number ensures that you stay tax compliant. It is important to note that alien individuals are not allowed to have both the SSN and the ITIN. In case you do not know whether you need to apply for the ITIN number for tax purposes, then you need to ask yourself the following questions.

Are you a non-resident alien individual that need to file tax returns and are not eligible for an SSN?

Are you a resident alien individual that needs to file tax returns and are not eligible for SSN?

Are you a spouse or dependent of a U.S. citizen or resident alien?

Are you a spouse or dependent of a non-resident alien visa holder?

In case the answer to either of the questions is yes, then you most certainly qualify for the ITIN for tax purposes. The IRS sometimes issues exceptions for resident and non-resident alien individuals from having an ITIN. In order to know whether you qualify for the exceptions, it is important to familiarize yourself with the Internal Revenue Code.

It is important to note that having the ITIN number does not guarantee you the right to work or receive income in the United States. Federal law prohibits the IRS from sharing data with other government agencies such as the Department of Homeland Security. This assures unauthorized aliens living in the United States that they can pay their tax returns without fear that their illegal status will be exposed to the DHS for extradition purposes. Additionally, the ITIN cannot be presented as a valid identification document to other government agencies or in other business activities. To find out more about itin number processing time please check with your certified acceptance agent.