In the United States, to facilitate tax collection, the Internal Revenue Service (IRS) requires that it is necessary to submit corresponding tax identification numbers when filing federal tax returns. If you plan to open a corporate bank account or a personal bank account in the United States, the tax identification number of the company’s responsible person or individual is also one of the required documents. Individual identification number includes Social Security Number (SSN) and Individual Taxpayer Identification Number (ITIN).

Social Security Number (SSN) is the tax identification number for individuals who are U.S. citizens, U.S. green card holders, or temporary working residents. SSN is nine-digit numbers issued by Social Security Administration (SSA), similar to the “ID card number” which is issued by China.

Individual Taxpayer Identification Number (ITIN) is the tax identification number for individuals who are not satisfied with the SSN application but have the responsibility for U.S. tax reporting issued by Internal Revenue Service (IRS). An ITIN is arranged in the same way as the SSN, starting with 9, with a total of 9 digits. An ITIN is valid for 5 years. If necessary, the taxpayer can re-apply for the existing number before it expires.

ITINs do not serve any purpose other than federal tax reporting at the beginning, but to attract foreign investors do business in U.S., many U.S. local banks accept ITIN as a substitute document for SSN to approve the foreigners’ applications to open bank accounts or credit cards. They are issued regardless of immigration status, because both resident and nonresident aliens may have to file income tax return under the Internal Revenue Code. IRS issues ITINs to help individuals comply with the U.S. tax laws, and to provide a means to efficiently process and account for tax returns and payments for those who are not eligible for Social Security numbers.

ITIN does not authorize the ITIN holder to work in the U.S., to provide eligibility for Social Security benefits, or to qualify a dependent for Earned Income Tax Credit purpose.

If you do not have an SSN and are not eligible to obtain one, and you have a requirement to furnish a federal tax identification number or file a federal tax return, you are eligible to apply for ITIN if you fall into one of the following categories:

• Nonresident alien who is required to file a U.S. tax return
• U.S. resident alien who is (based on days present in U.S.) filing a U.S. tax return
• Dependent or spouse of a U.S. citizen/resident alien
• Dependent or spouse of a nonresident alien visa holder
• Nonresident alien claiming a tax treaty benefit
• Nonresident alien student, professor or researcher filing a U.S. tax return or claiming an exception
  
  

If you qualify to apply for an ITIN and your application is completed, you will receive a letter from the IRS assigning your tax identification number. The processing time is about 6 to 8 weeks, and it may take up to 11 weeks during tax season (Jan - April). Expedited service is not available.

If you do not receive your ITIN or any other correspondence 10 weeks after applying, you may call the IRS to find out the status of your application.