What is an ITIN?

Individual Taxpayer Identification Number (ITIN) is a 9-digit tax processing number beginning with “9”, and is formatted like an SSN (9XX-XX-XXXX). ITINs are issued by IRS to help individuals who need to comply with the U.S. tax laws but do not have and are not eligible for SSN. Therefore, ITINs are used for tax purposes only and are not valid for identification outside of the tax system.

Why do you need an ITIN?

An ITIN  will serve as your identification number for filing your tax returns. If you do not qualify for an SSN, you will need to apply for an ITIN.

Here's what else your ITIN does:

• It allows you to get a refund from your income withheld by the IRS, if you qualify.

• It allows you to file your taxes and claim dependents you support in the U.S., Mexico or Canada.

• It may allow you to open a bank account or apply for a mortgage loan.

So your ITIN or tax ID not only helps you file a tax return, it ensures you get the refund you deserve as quickly as possible.

How to apply for a new ITIN (Exceptions discuss later)?

There are XXX Exceptions for the requirement of applying a new ITIN, and those exceptions will be discussed later.

For individuals who do not qualify for any one of those exceptions, you must complete Form W-7/W-7(SP), Application for IRS Individual Taxpayer Identification Number and attach a valid U.S. Federal income tax return. Include your original, or copy certified by the issuing agency of supporting documentations (discuss later). If you applied for SSN and received a letter of denial, that letter also must be attached to the Form W-7.

How to renew an ITIN?

ITINs that haven't been included on a U.S. federal tax return at least once in the last three consecutive tax years will expire. In addition, ITINs that were assigned before 2013 expire in 2018 because of the rules for the middle digits of the ITIN. Expired ITINs must be renewed if there is a tax filing purpose.

You must complete Form W-7/W-7(SP) and include your original identification documents or certified copy from the issuing agency. Send your Form W-7/W-7(SP) and proof of supporting documentations to the address listed in the Form W-7 instruction.

When and Where to complete the application?

If you're applying for a new ITIN, complete Form W-7/W-7(SP) as soon as you are ready to file your U.S. Federal income tax return, since you must attach the return to your application. If you're renewing an existing ITIN, you may submit your Form W-7 renewal application (without filing a tax return) immediately. If your application is approved, IRS will send you a letter assigning you ITIN within 7 weeks (up to 11 weeks during peak tax time).

You can apply the ITIN by mail, or appointment at any designated IRS TAC (Taxpayer Assistance Centers) in the United States. A better solution is to apply through an AA/CAA (discuss later).

Because you are filing your tax return as an attachment to your ITIN application, you should not mail your return to the address listed in the Form 1040, 1040A or 1040EZ instructions. Instead, send your return, Form W-7/W7(SP) and proof of supporting documentations to the address listed in the Form W-7 instructions.

What are AA and CAA?

Acceptance Agents (AAs) are persons (individuals or institutions) who have permission from the IRS that to assist ITIN applicants. An AA will need to submit original documentation or certified copies of the documentation to the IRS for all applicants.

Certified Acceptance Agents (CAAs) are individuals or institutions who assume a greater responsibility. Besides all the same assistance as AAs can do, CAAs have signed contracts with IRS ITIN office and are authorized by IRS to verify the applicant’s applications and supporting documentations in advance, so that IRS can save time on the application review process. After that, they will submit all the documentations (no original documentations needed) to the IRS on your behalf. In addition, once the ITIN is issued, the CAA receives your number directly from IRS.

We are authorized by the IRS ITIN office and duly authorized to issue “Certificate of Accuracy”(COA) certificates. The COA certifies that our office was presented with an original passport and that we as CAA, Certifying Acceptance Agents accepted the original documents presented and was satisfied with the authenticity and original origin so that the original documents need not be sent to the IRS.

We offer complete ITIN service to include the preparation of the following forms: 

• Form W-7, Application for Individual Tax Payer Identification Number
• Form W-7, (COA) Certificate of Accuracy for IRS individual Taxpayer Identification Number , along with required identity documentation.

Notes: For dependents, CAAs can only verify passports and birth certificates.

Why do you need a Certified Acceptance Agent (CAA) service?

Using the service of a CAA will make the application or renewal process much easier, especially for individuals who are not that good at English and who are not present in the United States at the time they want to apply the ITIN. The benefits include but not limited to the following:

• CAA will assist you correctly preparing all the required documentations.

• CAA can verify the documentations before they are submitted to IRS and make sure IRS will approve the application.

• No need to send the original documentations to the IRS. CAA can verify your original documentations (such as your passport) and send the copies with your application.

• More convenient and time-saving compared to lining up for the IRS TAC.

• Usually an ITIN application submitted through a CAA has priority over those submitted by individual taxpayers because it has been verified by CAA already.

What are reasons accepted by IRS for applying ITIN?

When complete Form W-7, you must check the box of reason for applying ITIN. As shown in the partial screenshot of the Form, there are eight reasons acceptable for IRS that applicants can choose from.

1. Nonresident alien required to obtain ITIN to claim tax treaty benefit.
2. Nonresident alien filing a U.S. tax return.

If you are a nonresident alien but have U.S. source income, you must file tax return with application of ITIN.

3. U.S. resident alien (Substantial Presence test) filing a U.S. tax return.

(See previous article “Non-resident Alien or Resident Alien” for more details about Substantial Presence Test)

4. Dependent of U.S. citizen/resident alien.

This option is usually used to include children/parents as dependents for tax return in order to claim tax benefits such as credits

5. Spouse of U.S. citizen/resident alien.

(See previous article “Non-resident Alien or Resident Alien” for more about Non-resident Alien filing MFJ with U.S. citizen/resident alien.).

6. Nonresident alien student, professor, or researcher filing a U.S. tax return or claiming an exception.
7. Dependent/Spouse of a nonresident alien holding a U.S. visa.

This option is allowed only for individuals with passport issued by Canada, Mexico and Korea

8. Other Five Exceptions.

Individuals who meet the exceptions don’t need to apply ITIN with a tax return, they can apply the ITIN any time during the year. For exceptions’ details, see “Exceptions” discussed later.

What are required documents for applying ITIN?

. Scroll to bottom of pageAnd, because they're verified on-site, your original documents may not need to be mailed to the IRS. Our CAA will submit copies of these documents, along with your ITIN application or renewal, to the IRS for you. Ask your tax professional if a CAA is available at your H&R Block location.

Supporting Documentation Table

What are requirements for Supporting Documentations for ITIN application?

1. The supporting documentations must verify your identity and claim your foreign status.

A passport with a date of entry is the only document that can stand-alone and provide all of the information required. If a passport is not submitted, a combination of at least two other documents which verify the identity and foreign status together must be provided. (see “Supporting Documentation Table” in the Exhibits to determine whether your documentation meet this requirements).

2. Be an original document, or

    Be a copy of an original document certified by the issuing agency of the original record.

4. Notarized copies are only acceptable for dependents and spouses of U.S. military personnel applying from overseas without an SSN who need an ITIN. A copy of the service member's U.S. military ID will be required or the applicant must be applying from an overseas APO/FPO address. A copy of the service member's U.S. military ID is required to be included with the application if the documents are notarized.

5. Be current, i.e. not expired prior to the date the Form W-7/ W-7(SP) is submitted.

Special Notes:

• Passports without a date of entry for dependents who are not from Canada, Mexico or dependents of U.S. military personnel stationed overseas cannot be used as a stand-alone document. Additional original documentation to verify U.S. residency must be provided by these applicants.
• School records submitted as identification documentation will be accepted only if they are for a school term ending no more than 12 months from the date of the Form W-7 application.

The school record must consist of an official report card or transcript issued by the school or the equivalent of a Ministry of Education. The school record must also be signed by a school official or ministry official. The record must be dated and contain the student's name, course work with grades (unless under age 6), date of grading period(s) (unless under age 6), and school name and address.

• Medical records are valid only for dependents under the age of 6.

Medical records will be considered current if the date displayed on the medical record is not more than 1 year from the date of last immunization or provider letter. The only acceptable medical record is a shot or immunization record which documents the patient's name and chronological dates of the patient's medical history and care. The record must contain the child's name, date of birth, and verifiable address. It must also document the name, address and phone number of the doctor, hospital, or clinic where the last treatment was administered. If this information is not included on the medical record you must provide a dated letter on official letterhead from the federal authority, physician, hospital or clinic who administered the latest care of the child. If a date of entry is required for the applicant on Form W-7 Line 6d, the medical record must be from a U.S. facility.

What are the “exceptions” to the requirement to attach a U.S. Federal income tax return?

Although most ITIN applicants must attach a valid U.S. Federal income tax return to their Form W-7 application, there are limited circumstances under which an ITIN will be issued without an attached return. If any of the five exceptions listed below apply to you, you will not need to attach a tax return to your W-7/W-7(SP).

Exception 1. Third party Withholding on passive Income;

Third Party Withholding on Passive Income. IRS information reporting and/or tax withholding is required and apply to third parties (frequently banks and other financial institutions), who will request an ITIN from you to enable them to comply with U.S. Treasury Regulations. To obtain an ITIN under this exception, you must include supporting documentation with your Form W-7/W-7(SP) showing that you own an asset that generates income subject to IRS information reporting and/or tax withholding requirements that will take place within the current tax year.

Exception 2. Wages, Salary, Compensation and Honoraria Payments with Tax Treaty Benefits Claimed; Scholarships, Fellowships and Grants with Tax Treaty Benefits Claimed; Scholarships, Fellowships and Grants – No Tax Treaty Benefits Claimed; or Gambling Winnings with Tax Treaty Benefits Claimed

Wages, Salary or Compensation and Honoraria Payments* - Tax Treaty Benefits claimed. IRS information reporting and tax withholding is required by law and apply to third parties who will request a TIN from you to enable them to comply with U.S. Treasury Regulations.

* Individuals present in the U.S. who are receiving honoraria payments only, do not have to apply for a SSN or submit letter of denial from the SSA. A letter from the Authorized School Official who extended the invitation will suffice.

Scholarship, Fellowship or Grant Income. IRS information reporting and/or tax withholding is required by law and apply to third parties who will request a TIN from you to enable them to comply with U.S. Treasury Regulations. Students on a F-1, J-1 or M-1 visa who will not be working while studying in the U.S., will not have to apply for an SSN. Student and Exchange Visitor Program (SEVP) approved institutions for non-resident alien students and exchange visitors, their spouses and dependents classified under section 101(a)(15) (F), (M) or (J) of the Immigration and Nationality Act {8 U.S.C. 1101(a)(15)(F), (M) or (J)} A certification letter is required for each Form W-7 application: primary, associated secondary (spouse) and dependent(s).

Gambling Winnings – Tax Treaty Benefits claimed. If you are a nonresident alien visitor with gambling winnings, your Form W-7/ W-7(SP) will be processed under an exception (2) only if submitted through the appropriate gaming official serving as an authorized ITIN Acceptance Agent.

Exception 3. Third party Reporting of mortgage Interest

Under the Internal Revenue laws, most recipients (lenders) of home mortgage interest report the amount

of interest they receive from the borrower to both the IRS and the borrower. This reporting is usually

done on a Form 1098, Mortgage Interest Statement. First time filers who secure a home loan may

seek an ITIN to provide to their lender.

Exception 4. Third party Withholding – Disposition by a Foreign person of United States Real property Interest

A tax withholding obligation is generally imposed on a buyer or other transferee (withholding agent) when a United States real property interest is acquired from a foreign person. This withholding serves to collect the tax that may be owed by the foreign person. In some instances, the foreign person may apply for a withholding certificate to reduce or eliminate withholding on the disposition of the real property.  An ITIN would be needed for this transaction. This exception may also apply if you have a notice of non-recognition under Treasury Regulations section 1.1445-2(d)(2). See the Exception Tables for more details on Exception 4.

Exception 5. TD-9363.

This exception may apply if you have an IRS reporting requirement under Treasury Decision 9363 and are submitting Form W-7, Form 13350, and supplemental documentation.

This exception only available for individuals generate income from corporations with assets of $10 million or more.