ITIN Services

If you need to file a U.S. federal tax return but aren’t eligible for a Social Security number (SSN), you may need an Individual Taxpayer Identification Number (ITIN). The IRS issues ITINs to qualifying taxpayers, including certain nonresident and resident aliens, spouses, dependents, and foreign individuals with U.S. tax obligations. 

When applying, you need information like Form W-7, documentation establishing your identity and foreign status, and, in most cases, a federal tax return. Any mistakes involving the application, your documentation, or tax forms can cause frustration and delays.

At USA Tax Gurus, we help clients with new ITIN applications and renewals, including W-7 preparation, passport verification through our Certified Acceptance Agent service, and related Form 1040 and 1040-NR filings. If you’re applying from outside the United States, obtaining an ITIN for a nonresident spouse or dependent, or handling U.S. tax obligations as a foreign business owner, we can address the ITIN application alongside the tax issue.

Why Hire USA Tax Gurus For ITIN Services?

Those who must submit a U.S. tax return while being ineligible for a US Social Security Number must first get an Individual Taxpayer Identification Number (ITIN) from the IRS. But the process of acquiring one is complicated and can take time. However, as a Certifying Acceptance Agent, the team at USA Tax Gurus can provide the guidance and professional support you need.

Who We Help With ITIN Applications

USA Tax Gurus assists individuals in the United States and abroad who need an ITIN for a federal tax purpose. Our clients commonly include nonresident aliens filing U.S. tax returns, foreign owners and investors in U.S. businesses, foreign owners of U.S. real estate, spouses and dependents who qualify for an ITIN, individuals claiming applicable tax treaty benefits, and international students, scholars, and researchers.

We also assist taxpayers with expired ITINs and applicants whose previous ITIN applications have been delayed or rejected.

ITIN Services for Foreign Owners of U.S. Businesses

Owning or forming a U.S. business doesn’t automatically mean that a foreign owner needs an ITIN. However, an ITIN may be required when the individual has a U.S. federal tax filing or reporting requirement connected with the business.

For example, a nonresident owner or investor may need an ITIN when required to file Form 1040-NR, report certain U.S.-source income, report income connected with a U.S. business or investment, claim a refund of U.S. tax withheld, or claim an applicable income tax treaty benefit.

The requirements depend on factors such as the type of entity, its federal tax classification, the owner’s activities in the United States, the nature and source of the income, and the individual’s U.S. federal tax filing requirements.

At USA Tax Gurus, we can review the underlying tax situation to determine why an ITIN is needed and coordinate Form W-7 with the related U.S. tax filing or reporting requirement. When required, we can also prepare Form 1040-NR and provide Certified Acceptance Agent services for qualifying identification documents.

What Is an Individual Taxpayer Identification Number?

An Individual Taxpayer Identification Number (ITIN) is a nine-digit number the IRS issues to those who need a U.S. taxpayer identification number for federal tax purposes but aren’t eligible for a Social Security number (SSN). It allows the IRS to identify and account for taxpayers who don’t have an SSN. You can apply for a new ITIN or renew an expired one by filing Form W-7.

An ITIN is limited to federal tax use. It doesn’t authorize employment in the United States, provide or change immigration status, qualify you for Social Security benefits, or serve as identification outside the federal tax system. If you’re eligible for an SSN, you shouldn’t apply for an ITIN.

For example, an ITIN can allow you to file a federal income tax return to report income or claim a refund. It can also be used in connection with certain treaty benefits and other IRS-recognized tax purposes. The reason you need the number affects how you complete Form W-7 and what you submit with it.

Common Reasons You May Need an ITIN

Filing a federal income tax return is one common reason, but the IRS recognizes other situations involving refunds, treaty benefits, withholding, and third-party tax reporting. In each case, you must be ineligible for an SSN and have a federal tax purpose for obtaining the number.

• Filing a U.S. Income Tax Return: You may need an ITIN to report income on a federal return when you don’t have and can’t obtain an SSN. The number identifies you as the taxpayer and allows the IRS to associate the return with your tax account.
• Claiming a Federal Tax Refund: You can have a reason to file even when you don’t owe federal income tax. For example, tax may have been withheld from your income during the year, leaving you entitled to claim an overpayment on a return. An ITIN allows an eligible taxpayer without an SSN to file for that refund.
• Claiming an Income Tax Treaty Benefit: U.S. income tax treaties can reduce the withholding rate on qualifying income received by a nonresident alien. An ITIN may be needed to claim the treaty treatment and provide the number to a U.S. withholding agent. Some applicants can use an IRS exception and submit Form W-7 without an income tax return.
• Receiving Income Subject to Tax Reporting or Withholding: An ITIN may be needed when a third party has to report a payment to the IRS or withhold federal tax. Examples can include pensions, annuities, rental income, royalties, and dividends. The Form W-7 instructions contain exceptions for qualifying applicants whose ITIN is needed for these purposes.
• Addressing Tax Reporting for U.S. Mortgage Interest: A foreign individual who owns U.S. real property may need an ITIN when a mortgage lender has federal reporting obligations for interest paid on the loan. The IRS identifies mortgage interest reporting as one of the exceptions under which an applicant can seek an ITIN without attaching an income tax return.
• Reporting Scholarships, Fellowships, or Grants: Foreign students, scholars, professors, and researchers may need an ITIN when qualifying payments are subject to U.S. tax reporting or withholding. The IRS provides exceptions for qualifying scholarship, fellowship, and grant income, including situations involving treaty benefits.

How Do You Apply for an ITIN?

Complete Form W-7

Form W-7 asks you to select the reason you’re seeking an ITIN and provide information such as your name, mailing address, foreign address, birth information, citizenship, and identification document data. The category you select must correspond with your reason for obtaining the number. The same form is used to renew an expired ITIN.

Prepare Your Federal Income Tax Return

First-time applicants attach Form W-7 to the front of their federal income tax return unless an IRS exception applies. The SSN field remains blank for each person seeking an ITIN. After assigning the number, the IRS enters it on the return and sends the return for processing. If you qualify for an exception, you provide the records identified by the IRS for that exception in place of a tax return.

Gather Proof of Identity and Foreign Status

The IRS accepts 13 categories of documents for establishing identity and foreign status. A passport can establish both by itself. Without a passport, you submit a combination of accepted records, including at least one containing a photograph, except for dependents under age 14 or under age 18 if they’re students. The documents you choose must collectively establish both identity and foreign status. 

Choose a Submission Method

You have three ways to submit an ITIN filing. You can:

• Mail it to the IRS address listed in the Form W-7 instructions
• Visit a participating IRS Taxpayer Assistance Center
• Work with an Acceptance Agent or Certified Acceptance Agent

A CAA can authenticate most identification documents, allowing those records to be returned to you instead of being mailed to the IRS. For dependents, CAAs can authenticate passports and civil birth certificates but not other identification documents. CAAs also can’t authenticate foreign military identification.

USA Tax Gurus can prepare Form W-7, authenticate qualifying identification documents through our CAA services, and prepare the federal return connected to your ITIN filing. We can also address IRS correspondence concerning missing information, document issues, or other questions about a submission.

What Documents Do You Need for an ITIN Application?

The IRS uses the identification records submitted with Form W-7 to establish your identity and foreign status. It accepts 13 types, each of which must be current when you file. You can provide originals or copies certified by the issuing agency. Notarized copies aren’t accepted, except for spouses and dependents of U.S. military personnel who meet the IRS conditions for applications submitted from an overseas or APO/FPO address.

A passport is the only stand-alone record that establishes both identity and foreign status. If you don’t have a valid passport, you can use two accepted forms of identification that establish both elements together. At least one must display your photograph, except when you’re applying for a dependent under age 14, or under age 18 if the dependent is a student.

The IRS accepts the following:

• Passport: Establishes identity and foreign status.
• USCIS Photo Identification: Can establish identity and foreign status.
• U.S. Department of State Visa: Can establish identity and foreign status.
• Foreign Military Identification Card: Can establish identity and foreign status.
• National Identification Card: Can establish identity and foreign status.
• Foreign Voter’s Registration Card: Can establish identity and foreign status.
• Civil Birth Certificate: Can establish identity and, if issued by a foreign country, foreign status. An applicant under age 18 without a valid passport must provide an original civil birth certificate.
• Medical Records: Available for dependents under age 6 and can establish identity. Foreign medical records can also establish foreign status.
• School Records: Available for dependent students under age 24 and can establish identity. Foreign school records can also establish foreign status.
• U.S. Driver’s License: Establishes identity.
• U.S. Military Identification Card: Establishes identity.
• Foreign Driver’s License: Establishes identity.
• U.S. State Identification Card: Establishes identity.

Dependent filings can involve proof of U.S. residency in addition to identity and foreign status. A passport containing a U.S. entry date can provide that evidence. If the passport doesn’t show an entry date, the applicant can use another accepted residency record based on age, such as a U.S. medical or school record, driver’s license, state identification card, visa, bank statement, rental statement, or utility bill. Not every item is available to every age group.

Note: Different rules apply to dependents from Canada or Mexico. They don’t need proof of U.S. residency when claimed for an allowable tax benefit other than the Credit for Other Dependents. A Canadian or Mexican dependent claimed for that credit must provide residency evidence. Dependents of U.S. military personnel stationed overseas also have an exception to the U.S. residency documentation rule.

Through our Certified Acceptance Agent services, we can authenticate qualifying identification records and return them after examination rather than sending those originals to the IRS. For dependent applicants, we can authenticate passports and civil birth certificates. Other dependent identification records are sent to the IRS as originals or issuing-agency-certified copies.

Applying for an ITIN From Outside the United States

You can apply for an ITIN while living outside the United States. One option is to mail Form W-7, your tax return or exception documentation, and your identification records to the IRS ITIN Operation in Austin, Texas. If you don’t want to send original identification records, the IRS accepts copies certified by the government agency that issued them.

You can also work with a Certified Acceptance Agent in the United States or abroad. As a CAA, we can examine qualifying identification records and return them after authentication, which can eliminate the need to send originals through international mail. 

Please note that filing from another country affects how long you should expect to wait for a response. The IRS advises overseas applicants to allow nine to 11 weeks for notification of their ITIN status, compared with seven weeks for applications outside the January 15 through April 30 peak period. If you haven’t received your ITIN or IRS correspondence by the end of that timeframe, you can contact the agency to check the status.

Why Are ITIN Applications Delayed or Rejected?

The IRS can suspend an ITIN filing when information is missing, Form W-7 is incomplete, or the identification records don’t satisfy its standards. In that situation, the agency may issue a CP566 notice asking you to correct the problem. If the filing is rejected, the IRS sends a CP567 notice explaining the reason and instructing you to submit a new Form W-7 if you still need an ITIN.

• Incomplete or Incorrect Form W-7 Information: Every question on Form W-7 needs an answer, with “N/A” entered where an item doesn’t apply. Your name, date of birth, citizenship, and other identifying information also need to match the records accompanying the form. Differences between these entries can prevent the IRS from completing its review.
• Problems With Identification Records: Damaged, illegible, expired, or unacceptable identification can cause an ITIN filing to fail. The IRS advises applicants to check documents for completeness and blemishes before sending them because records that aren’t clear can be treated as invalid. Problems can also arise when the records submitted don’t establish both identity and foreign status.
• Missing Tax Return or Exception Documentation: A new Form W-7 is submitted with a federal income tax return unless the applicant qualifies for an IRS exception. If you use an exception, you need evidence establishing that you meet its criteria. Omitting the return or the documentation supporting the exception can prevent the IRS from approving the filing.
• Failure to Respond to a CP566 Notice: A CP566 notice gives you 45 days from the notice date to respond. The letter identifies the information or records the IRS needs, and your response is mailed to the address shown on the notice. If you don’t respond within that period, the agency can reject the filing, leaving you to submit a new Form W-7.
• Applying When You Don’t Qualify for an ITIN: The IRS can reject Form W-7 if you’re eligible for an SSN or don’t qualify for an ITIN. A CP567 can also result from invalid documentation or failure to answer an earlier request for information. Reading the rejection notice before filing again helps identify what needs to change in the new submission.

At USA Tax Gurus, we can review a CP566 or CP567 notice, determine why the IRS suspended or rejected your filing, and help prepare the response or new Form W-7. Addressing the reason stated in the notice gives the IRS the information it identified as missing or incorrect.

What If You Become Eligible for a Social Security Number?

If you become eligible for and receive an SSN after using an ITIN, stop using the ITIN for federal tax purposes. You should use your SSN on future returns and other federal tax documents. The IRS doesn’t issue an ITIN to someone who already has an SSN, and the two numbers shouldn’t be used interchangeably.

You should also notify the IRS after receiving your SSN so the agency can combine your prior tax records under one identification number. You can do this at an IRS office or by sending a letter stating that you’ve received an SSN and want your records combined. Include your full name, mailing address, ITIN, a copy of your Social Security card, and a copy of your CP565 Notice of ITIN Assignment if you have it. The IRS will void the ITIN and associate your prior tax information with your SSN.

Updating the IRS records is important because wages and taxes withheld under your former ITIN need to be associated with your SSN. If the agency isn’t notified, you may not receive credit for all wages paid and taxes withheld, which could reduce a refund.

Get Help With Your ITIN From An Expert At USA Tax Gurus

An incomplete Form W-7, unacceptable identification records, or missing tax documentation can delay an ITIN filing. If you need a new number, have an expired ITIN, or received a notice about a filing you’ve already submitted, USA Tax Gurus can help determine what needs to be corrected or prepared. Book a meeting with us today or call 213-668-6316 and see how we can help.

FAQs About ITIN Services

How Long Does It Take to Get an ITIN?

The IRS generally advises applicants to allow approximately seven weeks to receive notification regarding an ITIN application. Processing can take approximately nine to 11 weeks if you apply during the January 15 through April 30 peak processing period or if you’re applying from outside the United States. Processing may take longer if the IRS requires additional information or documentation.

Can I Apply for an ITIN Without Filing a U.S. Tax Return?

Yes, in certain circumstances. Most first-time ITIN applicants must submit Form W-7 with a U.S. federal income tax return. However, the IRS provides exceptions for certain applicants who need an ITIN for another recognized federal tax purpose. If an exception applies, you generally need to submit documentation establishing that you qualify for the exception instead of attaching a federal income tax return. We can review your situation to determine whether an exception may apply and what supporting documentation is required.

How Does ITIN Renewal Work?

An ITIN expires if it isn’t used on a U.S. federal tax return for three consecutive tax years. The expiration occurs on December 31 of the third year of nonuse. An ITIN assigned before 2013 that has never been renewed is also expired. You need to renew an expired number before using it again on a federal return.

When Do I Need to Renew an ITIN?

You need to renew an expired ITIN when you plan to include it on a U.S. federal tax return. If the number appears only on information returns that report payments you receive, such as Form 1099, renewal isn’t needed at that time. You also don’t need an ITIN to make estimated tax payments or request an extension to file.

Does an ITIN Affect My Immigration Status?

No. An ITIN is a taxpayer identification number used for federal tax administration. Receiving one doesn’t change your immigration status or provide authorization to work in the United States. The IRS issues ITINs without regard to immigration status because people can have U.S. tax obligations under federal law even when they aren’t eligible for an SSN.

Can I Make Estimated Tax Payments Before I Receive an ITIN?

Yes. If you receive income without enough federal tax withheld, you may need to make estimated payments before you’re able to obtain an ITIN. The IRS instructs taxpayers in this situation to mail the payment with Form 1040-ES or Form 1040-ES (NR), leaving the taxpayer identification number field blank and entering “ITIN TO BE REQUESTED” where the number is requested. Form W-7 isn’t filed with the estimated tax payment voucher.

Do I Need to Send My Passport to the IRS?

Not in every case. You can submit an original passport, use a copy certified by the issuing agency, visit an IRS Taxpayer Assistance Center that provides ITIN services, or work with a Certified Acceptance Agent. A CAA can authenticate qualifying identification records and return them after examination, allowing many applicants to retain their original passports. Different authentication rules apply to dependent applicants.

Resources: 

• http://irs.gov/Form1040 
• https://www.irs.gov/forms-instructions-and-publications?find=w-7&items_per_page=200 
• https://www.irs.gov/individuals/understanding-your-cp566-notice