What is an ITIN? An In-Depth Guide
Do You Need to Apply For or Renew an ITIN?
We are certified acceptance agents, and we would love to help!
What is an ITIN?
An individual taxpayer identification number (ITIN) is a tax processing number, issued by the Internal Revenue Service, for resident and nonresident aliens, their spouses, and their dependents. It is used if a U.S. taxpayer is not eligible for a Social Security number. The ITIN is a nine-digit number beginning with the number 9, has a range of numbers from 50 to 65, 70 to 88, 90 to 92, and 94 to 99 for the fourth and fifth digits, and is formatted like a Social Security number (like this: 9XX-7X-XXXX).
Only individuals who have a valid tax filing requirement or are filing a U.S. federal income tax return to claim a refund of over-withheld tax are eligible to receive an ITIN. ITINs are used for tax purposes only and are not intended to serve any other purpose.
The ITIN does not authorize you to work in the U.S. or to receive Social Security benefits, is not valid for identification outside the tax system, and does not change your immigration status.
To read more about ITINs, see our U.S. Tax Guide for Foreign Nationals.
Do You Need an ITIN?
If you do not have a U.S. Social Security number (SSN) and are not eligible to obtain an SSN, but you are required to file a U.S. federal income tax return, be claimed as a spouse or dependent on a U.S. tax return, or furnish a tax identification number for any other federal tax purpose, you need an ITIN. You must have a valid filing requirement and file an original valid U.S. federal income tax return with your ITIN application unless you meet one of the exceptions listed below. Even if you meet one of the exceptions to filing a tax return, you must still have a valid tax purpose.
ITIN Examples
Here are some examples of people who need an ITIN:
- A nonresident alien individual not eligible for an SSN who is eligible to obtain the benefit of a reduced tax withholding rate under an income tax treaty.
- A nonresident alien individual not eligible for an SSN who is filing an application for reduced withholding on the sale of U.S. real property.
- A nonresident alien individual not eligible for an SSN who is required to file a U.S. federal income tax return or who is filing a U.S. tax return only to claim a refund.
- A nonresident/resident alien individual not eligible for an SSN who elects to file a joint U.S. federal income tax return with a spouse who is a U.S. citizen or resident.
- A U.S. resident alien (based on the substantial presence test) who files a U.S. federal income tax return but who is not eligible for an SSN.
- An alien individual eligible to be claimed as a dependent on a US federal income tax return but who is not eligible to obtain an SSN.*
* Note that beginning in 2018, dependency exemptions are no longer allowed. However, dependents who are eligible for the Child Tax Credit or Other Dependent Tax Credit must still have an ITIN by the due date of the tax return. Additionally, if you are claiming one of these credits on your U.S. federal tax return, you must be issued an ITIN by the due date of the return. (See our U.S. Tax Guide for Foreign Nationals under The Tax Return.)
For most of the above purposes, a completed U.S. federal income tax return must accompany Form W-7 (Application for IRS Individual Taxpayer Identification Number) to apply for an ITIN, but there are a few exceptions.
Exceptions To the Tax Return Requirement
An ITIN application can generally be filed without a tax return if:
- You are the recipient of partnership income, interest income, annuity income, rental income, or other passive income that is subject to third-party withholding or covered by tax treaty benefits,
- You are claiming the benefits of a U.S. income tax treaty with a foreign country and receive wages or other compensation (scholarships, fellowships, grants, gambling income, etc), or you are receiving taxable scholarship, fellowship, or grant income but not claiming the benefits of a tax treaty,
- You have a home mortgage loan on real property you own in the United States that is subject to third-party reporting of mortgage interest,
- You have sold or exchanged real property located in the United States, which is subject to withholding by the buyer or transferee, or
- You have an IRS reporting requirement as a non-US representative of a foreign corporation who needs to obtain an ITIN for the purpose of meeting their e-filing requirements under TD 9363 and are submitting Form W-7 with Form 13350, Registration for e-services
An explanation of these five exceptions is in Instructions for Form W-7. You can also renew your ITIN and those of your spouse and dependents without filing a tax return.
See below for information regarding renewal requirements.
How Do You Get an ITIN Number?
You must properly complete Form W-7 and attach a valid U.S. federal income tax return unless you qualify for an exception. You must also attach documentation to establish your identity and your connection to a foreign country (foreign status). A list of 13 documents that will satisfy these requirements is shown in the Instructions for Form W-7.
The one standalone document that satisfies both identity and foreign status is a current U.S. passport. If you do not have a current U.S. passport, one of the other documents from the list must be provided to prove foreign status and an additional document must be provided to prove identity.
The Non-CAA Procedure
Only original documents, or "certified" copies of the documents are accepted. A certified document is one that the original issuing agency provides and certifies as an exact copy of the original document, and contains an official stamped seal from the agency.
Do not try to send a "notarized" copy. A notarized document is one that the taxpayer provides to a public notary who bears witness to the signing of the official document and affixes a seal assuring that the document is legitimate. These documents will not be accepted unless you are a U.S. citizen or resident member of the U.S. military and are submitting documentation for a dependent. See ITIN Documentation FAQs from the IRS.
The IRS promises to return original documents within 60 days through the regular mail service. However, it's always very risky to send original documents to the IRS, especially if you must rely on foreign postal systems.
You can avoid sending original or certified documents through the mail to the IRS by taking your completed tax return and original or certified documents to a designated IRS Taxpayer Assistance Center. There, they will certify your documentation and forward your tax return to the IRS Service Center. Here is a list of Taxpayer Assistance Center Locations where in-person document review is provided.
If you are outside the United States, this option is not plausible. Additionally, the process of obtaining certified documents through the issuing agency is often expensive, time-consuming, or sometimes not available. That is where certified acceptance agents come in.
The CAA Procedure
As Certifying Acceptance Agents (CAAs) we can verify your claim of identity and foreign status and submit Form W-7 on your behalf. We are allowed to use Form W-7 (COA) as evidence that we have reviewed and verified your original documentation, or a certified copy from the issuing agency of those documents, through face-to-face or video electronic interviews.
We must have your original identification documents in our possession during the interview in order to see the security features and authenticate the documents. That means you must mail your documents to us rather than the IRS.
We will return your documents immediately after the interview through your choice of a reliable private carrier. We are required to submit copies of the documents we review, along with the Form W-7(COA). For dependents, we are allowed to authenticate the passport and birth certificate.
Although the Form W-7 instructions list 13 types of documents that a CAA may authenticate for an ITIN application, the IRS has announced that after January 1, 2020, the IRS has eliminated the foreign military identification card from the list. However, you will still be able to use this document to obtain an ITIN if you present it directly to the IRS either by mail or in person at a Taxpayer Assistance Center.
How Do You Renew an Expired ITIN?
The renewal process is the same as the application process. Beginning in 2022, a renewal application must also be attached to a tax return, unless it meets one of the published exceptions. However, if you have an expired ITIN, it would be prudent to file your tax return early. If not, you could face a delay in your refund and may be ineligible for certain tax credits, such as the Child Tax Credit, if the IRS does not renew your ITIN (or a dependent's ITIN) by the due date (including extended due date) for filing your return.
Additionally, if your ITIN has not been used on a federal tax return at least once in the last three years, it will no longer be valid for use on a tax return unless it is renewed. However, for ITINs issued before 2013, the IRS uses a rolling renewal schedule.
If your ITIN has middle digits (the fourth and fifth digits) of 70, 71, 72, 73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87 or 88 (example: 9XX-73-XXXX), it has already expired. ITINs with middle digits 90, 91, 92, 94, 95, 96, 97, 98, or 99, that were assigned before 2013 and have not already been renewed, expired at the end of 2021. However, all of these ITINs can still be renewed.
The IRS emphasizes that no action is needed by ITIN holders if they don’t need to file a tax return next year.
Family Option Remains Available
To make this renewal effort easier and reduce paperwork, the IRS offers a family option for ITIN renewals. If any individual receives a renewal letter from the IRS, they can choose to renew the ITINs of all of their family members at the same time rather than doing them separately over several years. Family members include the tax filer, their spouse, and any dependents claimed on their tax return.
We Can Help!
CAA ITIN Application or Renewal: $325 (Excluding Postage)
Here's what we do:
- If you cannot visit our office in Edina, Minnesota so we can verify your identifying documents, you can send the documents to us by mail or private carrier.
- We will schedule a short video conference with you (or your dependents) to confirm your identity.
- We will then immediately return your documents through your choice of delivery. This part, you need to pay for.
- We will verify your documents showing proof of identity and foreign status, then properly prepare and sign Form W-7 and Form W-7 (COA). If we prepare your tax return or other qualifying document for IRS submission, we will send all documents by Priority Mail to the relevant IRS Service Center.
- Here's the best part - we follow up with the IRS to ensure that the ITIN is issued. Unlimited follow-ups are included in the $295 flat fee.
Just submit the contact form, giving us your circumstances for needing an ITIN, and we will take it from there.