| Your Master Tax Advisor/Mei-Feng Moe, E.A. ITIN : What Is It and Who Needs It? |
| Most people who file a tax return use their social security number (SSN) or a federal employer identification number (FEIN). What about those people who are not eligible to obtain a social security number but are required to file a tax return? Individual Taxpayer Identification Number (ITIN) is issued by the IRS to individuals who are required to have a U.S. taxpayer identification number, but do not have a SSN and are not eligible to get one. It is always a 9 digit number, formatted like a SSN, but beginning with a 9 and contains a 7 or an 8 as the fourth digit (e.g., 9XX-7X-XXXX.) The ITIN is only used for processing federal, state and local income tax returns. It does NOT affect immigration status, authorization to work in the U.S., entitlement to social security benefits, or the Earned Income Tax Credit. Outside the tax system, it is not a valid identification and is not to be offered or accepted as an official form of identification. You will need to apply for an ITIN if you are: |
| - a nonresident alien filing a U.S. tax return; - a resident alien (*) filing a U.S. tax return; - a dependent or spouse of a U.S. citizen/resident alien - a dependent or spouse of a nonresident alien visa holder. |
| (*) A resident alien for income tax purposes is based on days present in the U.S. and is not be confused with immigration laws. If you live in the U.S. more than six months, you are a resident alien for income tax purpose, even if you are a nonresident alien for immigration purposes. With an ITIN, you may claim the exemption for a spouse who lives in the U.S. or anywhere else in the world. For a dependent exemption, a dependent must live in the U.S., Mexico, Canada, Korea, or India. (Japan was taken off this list effective 01/01/05 under a new treaty.) For a child tax credit, the dependent must have lived in the U.S. To apply for an ITIN, a Form W-7 or W-7 SP (Spanish version) entitled "Application for IRS Individual Taxpayer Identification Number" must be completed and submitted to the IRS with proof that the ITIN will be used in connection with filing a tax return. In most situations, a tax return must be attached to the form W-7. Supporting documentation is required to substantiate the true identity and foreign/alien status when applying for an ITIN. The IRS will accept a passport or a combination (two or more) of the following documents as proof of identity and foreign status: |
| - National identification card (must show photo, name, current address, date of birth, and expiration date) - U. S. driver's license - Civil birth certificate - Foreign driver's license - U. S. state identification card - Foreign voter's registration card - U. S. military identification card - Foreign military identification card - Visa (An endorsement made on a passport by the proper authorities denoting that it has been examined and that the bearer may stay in a country, or work in a country, etc., for a defined period of time.) - U. S. Citizenship and Immigration Services (ISCIS) photo identification - Medical records (dependents only -- must be within the last four months) - School records (dependents and/or students only -- must be within the last 12 months) |
| The documents listed above are the only documents that the IRS will accept. These documents must be current and at least one must contain a recent photograph. The only exception to the photograph requirement is a dependent that is under age 14 or a student under 18. The ITIN program has been in existence for the past 10 years and was recently revised by the IRS. This article covers the revised application standards. The IRS has also implemented a new program to certify Acceptance Agents to assist taxpayers in obtaining ITIN. An Acceptance Agent is an individual, business or organization (college, financial institution, tax and accounting firms, etc.) authorized by the IRS to review applicant?s documentation and forward the application to the IRS along with a certificate of accuracy. A list of Acceptance Agents may be found on the IRS website: www.irs.gov. About the author Mei-Feng Moe (May) is a Master Tax Advisor certified by H&;R Block. In addition to giving tax advice and preparing tax returns, she has also been teaching income tax courses for a number of years. She is an Enrolled Agent who may represent clients before the IRS. She also holds series 6 and series 63 security licenses. |
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