The Individual Taxpayer Identification Number (ITIN) is issued by the Internal Revenue Service (IRS) to ensure tax compliance, even for individuals, including undocumented immigrants, who lack a Social Security number (SSN) or legal immigration status. This document outlines ITINs’ purpose, eligibility, and usage.
What is an ITIN?
The ITIN was established by the IRS in July 1996 to enable foreign nationals and others ineligible for an SSN to fulfill U.S. tax obligations.
Unlike SSNs, ITINs are nine-digit numbers beginning with 9 and fall within specific ranges for the fourth and fifth digits, formatted similarly to SSNs (9XX-XX-XXXX).
ITINs are obtained by various individuals, including foreign nationals residing in the U.S. for tax filing, students, professors, researchers without SSNs, dependents or spouses of U.S. citizens or lawful residents, and those of foreign nationals on temporary visas.
ITINs do not confer legal status or work authorization.
ITINs do not grant legal immigration status or authorize work in the U.S.
They cannot be used as proof of legal presence or work authorization on an I-9 form.
ITIN holders fulfill tax obligations.
ITINs enable tax payments for individuals without SSNs. In 2015, ITIN filers contributed over $5.5 billion in payroll and Medicare taxes and $23.6 billion in total taxes, per IRS data.
While ITIN holders are ineligible for certain tax and public benefits, such as Social Security benefits or the Earned Income Tax Credit (EITC), their reported earnings may count towards future eligibility.
Some ITIN holders qualify for the Child Tax Credit (CTC), as per legislation, benefitting up to 4 million U.S.-citizen children of ITIN holders.
Other uses of ITINs:
Opening interest-bearing bank accounts and securing driver’s licenses in some states may be facilitated with an ITIN.
ITINs may serve as proof of physical presence in the USA, aiding immigrants in future documentation needs.
Is ITIN used for immigration enforcement?
No, ITIN is solely for tax purposes. IRS does not typically share applicants’ data with immigration agencies, preserving taxpayer privacy as mandated by Section 6103 of the Internal Revenue Code.
To apply for an ITIN, individuals follow these steps:
- Complete a W-7 application form and submit it, along with a completed tax return, to the IRS.
- Provide documents to verify identity and “foreign status,” selecting from the IRS’s list of 13 accepted documents.
- Choose from various application methods:
- Apply by mail or private delivery service, without needing to appear in person. However, original documents (or certified copies) must be sent to the IRS, with applicants waiting for their return.
- Seek assistance from an Acceptance Agent (AA) authorized by the IRS to aid in completing and filing the W-7. Original documents (or certified copies) are also sent to the agency through the AA.
- Engage a Certifying Acceptance Agent (CAA) authorized by the IRS to authenticate documents, allowing applicants to retain their originals.
- Visit a Taxpayer Assistance Center (TAC) in person, staffed by IRS-authorized individuals who can authenticate documents. Applicants can retain their original documents when applying at a TAC.
- Upon approval by the IRS, the ITIN is sent to the applicant via mail.
