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Some Directions Need To Follow While Applying For ITIN

  • Apr 24, 2018
  • Betty E
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The Individual Taxpayer Identification number (ITIN) is mainly a tax processing number certified by the Internal Revenue Service to the individuals who do not possess a social security number but are able to earn a certain taxable income or may be receiving any scholarships, awards and stipends from any renowned university. The person can apply for ITIN to fill up the tax returns by opening a bank account or apply for a mortgage loan. They are a nine digit number starting with the number nine and used as an identity proof to access all types of financial services mainly in the United States.

Some Directions Need To Follow While Applying For ITIN

There are lots of trustworthy companies those who do not accept any notarized copy or document of the applicants on an ITIN. Only the original documents of birth certificates, passport, visa, driving license, foreign voter card and military identification card or valid copies of these documents need to be present. The nine digit number ITIN issued by IRS to the resident aliens and other foreign nationals who does not possess any social security number for carrying the various tax processing activities in United States. The IRS ITIN does not serve any authorization to work or provide any social security benefits of earning income. They are mainly used by the millions of people for federal tax reporting only. The renewal is the extended part of the free ITIN service which is offered by the tax offices to help the individuals in meeting the various tax obligations.

Since ITIN is issued to foreign nationals and other individuals who fall under the federal tax filing requirements, so both US residents and non residents can opt for an ITIN in order to claim their exemption. But it is must that there should be a separate application for the individual taxpayer, spouse as well as their dependent children. The applicant should fill up the complete IRS form. You can download the form from the Internet or can bring it from the nearest social security office.

Now, for renewal, IRS emphasizes the fact that no action is necessary for ITIN holders who do not want to file a tax return in the subsequent year. But then the question should arise that what would be the need for ITIN renewal. The answer to this is that a new law passed under the PATH act with two key groups of ITIN holders. The first will be include all those taxpayers who have not used their ITIN number on a federal tax return for the last three years must renew their ITIN before filing the 2018 tax return. Second the individuals who already have an ITIN which has been issued before 2013 will begin to expire according to the middle digits.

Since ITIN is running parallel to the tax preparation services, both the applicants and their dependent sources can also claim for an ITIN renewal. In such case, they need to provide a valid reason for renewing.