An ITIN is a United States tax number that is used on all returns, statements and other financial documents in case the individuals do not possess a Social Security Number. The IRS issues the ITIN to both the resident immigrants and the non resident foreign nationals filing a tax return to claim refunds under an income tax treaty. Even the dependent or spouse of a US citizen or a nonresident alien visa holder need an ITIN in order to pay their federal taxes. It is a nine digit number that is primarily used as an identity proof when applying for bank loans or credit cards.
The foreign investors and real estate brokers also need an ITIN to file their federal and state tax returns as well as report the rental income. So does an alien individual who is claimed as a spouse for exemption on the US tax return and is willing to build credit history. Therefore, this tax processing number is essential for all such individuals who are responsible as dependents on another person’s tax return and for the non resident students, professors and scholars who qualify as US residents require ITIN for paying the taxes legally. There are additional benefits available to the ITIN holders like the ability to register for certain health and insurance plans. The ITIN cannot replace the SSN, especially when it comes to the working rights. Also, an individual cannot have both the SSN and ITIN at a time.
The applicants of ITIN are required to completely fill up the W7 application form and submit it at the respective IRS office along with a tax return. The ITIN applications cannot be filed electronically. After being approved, they are sent to the concerned person through the mail. The individuals should provide all the relevant supporting original documents of passports, identity cards containing the names, address, date of birth of the applicants, the US or foreign voter cards, registration cards, military identification cards, medical and school records of dependents under 18 years of age. The applicants can apply directly or take the help of certified acceptance agencies and taxpayer assistance centers working overseas in lieu of direct mailing the original copies to the IRS. These agencies also help the applicants in getting their applications rejected by verifying the authenticity of the documents submitted. The staff members of the service are flexible to local languages, making it easier for the foreign applicants in interacting with them. With them the ITIN applications are processed much faster than the applicants applying in person.
The ITIN program was created to track and bring the millions of unauthorized immigrants under the federal revenue system. Since the individuals share a lot of personal information with the IRS, privacy is highly essential for the success of the program. Additionally, the alien individuals who are willing to secure a driver’s permit or state identification card need an ITIN help. With this number they can also provide proof that how long he or she had been residing in the country and having a tax return filed.