U.S. Individual Taxpayer Identification Number Guide |
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). |
1. | Compare of the ITIN and SSN |
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 government. |
2. | Individual Taxpayer Identification Number (ITIN) |
ITIN issued by the Internal Revenue Service is a tax number used to process individual tax return. ITIN is a nine-digit number that always begins with the number 9. |
3. | Uses of an ITIN |
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. |
4. | Individuals who need an ITIN | ||||||||||||||||||||||||
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:
Detailed examples of who needs an ITIN:
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5. | ITIN Application Methods |
Method 1: |
6. | ITIN Application Timeframe |
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. |
7. |
Change of the Legal name on the ITIN Letter |
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If the change affects your legal name, you will need to request a name change to IRS to update the records. Include an explanation of the circumstances leading to the change (marriage, divorce, etc.) and submit documentation to support your request. Examples include: (1) A copy of a marriage license. (2) A copy of a divorce certificate. (3) An official court related document validating the name change. |
8. |
Expiration of the ITIN |
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ITINs that haven't been included on a U.S. federal tax return at least once in the last three consecutive tax years will expire. If your ITIN wasn't included on a U.S. federal tax return at least once for tax years 2016, 2017 or 2018, your ITIN will expire on December 31, 2019. In addition, ITINs that were assigned before 2013 will expire according to an annual schedule based on the middle digits of the ITIN. The middle digits refer to the fourth and fifth positions of the ITIN. For example, the middle digits for 9xx-70-xxxx are “70.” ITINs with middle digits (the fourth and fifth positions) "83," "84," "85," "86," or "87" will remain in effect until December 31, 2019. ITINs with middle digits "70" through "82" have expired. If ITIN will be included on a U.S. federal tax return, the expired ITIN must be renewed in order to avoid delays in processing your tax return. |
9. |
Renewal of the ITIN |
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ITINs that haven't been included on a U.S. federal tax return at least once in the last three consecutive tax years will expire. If your ITIN wasn't included on a U.S. federal tax return at least once for tax years 2016, 2017 or 2018, your ITIN will expire on December 31, 2019. In addition, ITINs that were assigned before 2013 will expire according to an annual schedule based on the middle digits of the ITIN. The middle digits refer to the fourth and fifth positions of the ITIN. For example, the middle digits for 9xx-70-xxxx are “70.” ITINs with middle digits (the fourth and fifth positions) "83," "84," "85," "86," or "87" will remain in effect until December 31, 2019. ITINs with middle digits "70" through "82" have expired. If ITIN will be included on a U.S. federal tax return, the expired ITIN must be renewed in order to avoid delays in processing your tax return. |
See also: U.S. Identification Number Application Procedures and Fees |
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