Individual taxpayer identification number or ITINs are used to distinguish individual persons from business entities. An individual must apply for an individual taxpayer identification number when they pay tax, as a resident or non-resident alien who is not eligible to receive social security numbers.
ITINs are issued by the Internal Revenue Service, and used to track income taxes. They were specifically created so that residents of the U.S. who do not qualify for social security numbers can pay taxes and have access to social services. This may include for example: foreign students or people on work visas which do not provide SSN.
Introduced in 1996, as a part of the Taxpayer Relief Act signed by President Bill Clinton, ITINs are a nine digit number, formatted like a social security number.
There are a ton of reasons why someone may need to apply for an ITIN but most don't know the way to do so. It can also be a daunting, intimidating task best left to professionals with experience. Southwest Tax Solutions has lots of experience getting clients their ITINs as quickly as possible.
However, if you choose to go it alone, read the steps below!
An individual taxpayer identification number could be issued one of the following ways:
1. You can order for an individual taxpayer identification number on the IRS website by clicking on 'Individual Taxpayer Identification Number' and then clicking on the link that says 'Apply for an ITIN.' If you are already in the USA receiving wages from your employer, you will need to print off Form W-7 and fill in your details before mailing it in
2. If you are on the phone with individual taxpayer identification number department, an IRS individual taxpayer identification number specialist will ask you a few questions before they process your ITIN application electronically and deliver it to you by mail.
3. Filling in Form W-7 and sending it using certified mail is another form of ordering individual taxpayer identification numbers from the IRS.
There are plenty of reasons why someone may need an ITIN. An individual would need their own individual taxpayer identification number if they make any non deductible payments such as income tax or investment earnings that cannot be directly reported by another person or business entity such as a corporation or limited liability company.
Here in El Paso, Texas, individuals who want to benefit from opportunities offered by the state and federal government, may not always have social security numbers to gain access. In most cases, having an ITIN can be used as an alternative to having a social security number or SSN.