INDIVIDUAL IDENTIFICATION NUMBER (ITIN) January, 2011
What is an ITIN? A tax processing number, issued by the IRS, that identifies, for tax purposes, certain resident and non-resident aliens, their spouses, and/or their dependents.
Why an ITIN? To fulfill filing requirements and/or payment responsibilities under the Internal Revenue Code: Some people (residents or non resident aliens) do not have and are not eligible for Social Security Numbers yet they are still required to file a tax return.
An ITIN does NOT. . . n Entitle the recipient to Social Security benefits or Earned Income Tax Credit (EITC) n Change an individual’s immigration status n Give the individual the right to work in the U. S. and is not valid for employment purposes n Serve as identification outside the tax system
How to obtain an ITIN? By completing Form W-7 and attaching proof of identity and foreign status documents together with a valid U. S. Federal Income Tax Return (unless you qualify for an exception).
Form W-7
Supporting Documentation n n Passport only stand-alone document that will probe both, identity and foreign status List of acceptable documents can be found in Instructions to Form W-7 or Publication 915
Common Applicant Errors n n n No return attached and no indication an exception is met Form W-7 or W-7 SP not signed The delegate’s relationship to applicant BOX is not checked Foreign address (or country) not provided on Form W-7 or W-7 SP (line 3), when required Proper documentation is not attached n n Supporting documentation to meet exception not attached to Form W-7 Original, notarized or certified identification documents not provided n Identification documents had expired (where applicable) n Applications not mailed to the ITIN PO Box or sent to the wrong Center
Where can a taxpayer request help in completing Form W-7? n Publication 1915 Understanding Your IRS Individual Taxpayer Identification Number (ITIN), contains step-by-step instructions n Call IRS at 1 -800 -829 -1040 n Visit an IRS Taxpayer Assistance Center n Visit a VITA site that has been trained in completing Form W-7 n Visit a tax professional n Visit an IRS-authorized acceptance agent
Where to Submit an ITIN Application n By Mail: Internal Revenue Service ITIN Operation P. O. Box 149342 Austin, TX 78714 -9342 n In Person: IRS Taxpayer Assistance Center n Through an Acceptance Agent: To obtain a list of agents, visit the IRS website at www. IRS. gov, keyword search: Acceptance Agent
Certifying Acceptance Agents (CAA) A CAA is a person who is authorized to assist alien individuals and other foreign persons in obtaining ITINs from the IRS.
Role of CAA n n n n Conducts interviews with client Determines client’s eligibility for a Social Security Number Reviews/Certifies supporting and supplemental documentation Certifies the documentary evidence of the client foreign status and identity Prepares the W-7 application Maintain copies of the signed W-7, certificate of accuracy, documentary evidence of foreign status and identity, the federal tax return and supporting documentation of exception if applicable for three years Provide additional information on applicant’s behalf Contact the IRS on behalf of applicant as it relates to the ITIN application
Summary n n Form W-7/W-7 (SP) is used to apply for an IRS Individual Taxpayer Identification Number. The ITIN is intended for federal tax purposes only and does not change the individuals immigration status or authorize them to work in the U. S.
Summary n n Any resident or nonresident alien, who is required to file a U. S. federal tax return, or can be claimed as a dependent on a tax return, and who does not qualify for a SSN, must apply for an ITIN. Only residents of the U. S. , Canada, India, Mexico or South Korea may claim an exemption for their spouses and their dependents, if special rules are met.
Summary n n n The ITIN does not entitle the applicant to claim EITC nor entitle them to Social Security benefits. An individual with an ITIN does not qualify for EITC. Children with an ITIN do not qualify for EITC, however, they may qualify for the Child Tax Credit and Additional Child Tax Credit.
Reference n Go to www. IRS. gov keyword search “ITIN” Instructions for Form W-7 n Publication 1915 & 1915 (SP) - n Publication 4327 (ENG/SP) – ITIN - n Understanding Your IRS Individual Taxpayer Identification Number Facilitating Participation in the Tax System
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