An ITIN is a nine-digit number that must be used on all tax-related returns and documents if individuals do not qualify for a Social Security Number in the US. To further elaborate, both resident and non-resident alien individuals Residents who will benefit from a reduced rate of holdings under the income tax treaty may have federal tax returns and payment responsibilities issued by the Internal Revenue Code or nonresident aliens who are willing to file joint taxes with their dependent spouses, the spouse who is a US resident needs an ITIN.
Real estate brokers can use an ITIN to facilitate mortgages for unauthorized immigrants. This tax identification number is also required by foreign investors in US real estate to file state tax returns to report rental income. The same goes for a foreign spouse who is being claimed for exemption based on US tax laws. Therefore, the ITIN is required for all foreign taxpayers who claim a dependent on another’s tax return. individual and nonresident professors, students, and researchers who want to apply for scholarships also need an ITIN to claim an exception to the tax filing requirement. The ITIN program was created so that millions of people can use it as proof of identity when opening a savings account or carrying out other financial activities. Receiving an ITIN does not in itself establish the right to work and earn income or provide eligibility for Social Security benefits. Statements of identity are considered valid for tax filing only.
A person who meets the eligibility requirements can apply for an ITIN, but must disclose a federal tax purpose for seeking it. This involves submitting IRS Form W7, which contains a record of biographical information along with specific types of valid supporting national identification cards, including name, address, date of birth, passport, U.S. or foreign voter registration card, registration, driver’s license and an original tax return attached to it. An ITIN application cannot be submitted electronically. Also, notarized copies of documents are not accepted. ITIN applications along with two of the aforementioned original documents must be mailed to the designated address of the IRS Taxpayer Assistance Centers in the United States. The ITIN issued to a person also expires if it is not used for three consecutive years. In all of these cases, taxpayers can reapply and renew their ITIN.
ITIN has played an important role in attracting more people to the American economy. Realizing the importance of the ITIN in tracking undocumented immigrants, the federal government has also brought in some individuals and commercial institutes as Acceptance Certifying Agents who work in a written agreement with the IRS to provide assistance to taxpayers in need. an ITIN to verify and return. all important papers during application only. Additionally, applicants can call the IRS toll-free numbers to check the status of their application or for additional inquiries.