ITIN – Individual Taxpayer Identification Number is a tax processing number which is issued by the IRS. The number has nine digits and would normally start with the number 9; it has a range of 70-88 in the 4th and 5th digits. The issuing of ITIN is made by the IRS to individuals who are obliged to have a United States taxpayer identification number but do not have, and are not eligible to get a Social Security Number from the Social Security Administration.

Individual Taxpayer Identification Numbers are issued in spite of immigration status, since both resident and non resident aliens may have a United States filing or reporting requirement under the Internal Revenue Code. Individual taxpayers must of necessity, have a filing requirement and also file a valid federal income tax return to get an ITIN, except they meet an exclusion.

The Use of ITIN

ITINS are solely used for federal tax reporting, and are not meant to fulfill any other purpose. It does not authorize work in the United States; neither does it offer eligibility for Social Security benefits or the Earned Income Tax Credit. Outside the tax system, ITINs are not valid identification. The sole purpose of the issuance of ITINS by IRS is to assist individuals comply with the U.S tax laws and to offer an avenue to effectively process and account for tax returns and payments for the taxpayers not eligible for Social Security Numbers.

The Individual that ITIN is Meant For

Foreign nationals and others who possess federal tax reporting or filing requirements and are not eligible for Social Security Numbers are those who IRS issues ITIN. A non-resident alien individual who do not qualify for a SSN, who is requested to file a United States tax return solely for tax refund claim under the provisions of a United States tax treaty, should obtain ITIN.

Perhaps you do not have a SSN and are not qualified to obtain one, but you possess a requirement to supply a federal tax identification number or file a federal income tax return, it is compulsory for you to apply for an Individual Tax Identification number. Perhaps you have a pending application for a SSN, then you should not file Form W—7. You can complete Form W-7 only if the SSA gives you a notice that SSN cannot be issued. The best place to find out your eligibility for Form SSN or get Form SS-5 is to visit www.socialsecurity.gov. The law stipulates that an alien individual cannot have both an ITIN and SSN.

It has to be reiterated, that ITINs are not valid identifications outside the tax system; owing to the fact that ITINs are precisely for tax processing, the Internal Revenue Service does not apply the same standard with agencies that provide authentic identity certification. It is not required of ITIN applicants to apply in person; also, the Internal Revenue Service does not additionally validate the genuineness of identity documents. Outside the federal tax system, ITINs do not prove identity and therefore should not be presented or accepted as identification for purposes other than tax.