Individual Tax Identification Number
There is this very famous advice given to Non-Residential Indians (NRIs) who went to the USA for earning prospects, “If you wish to progress in America, getting a Green Card is CRUCIAL for you”. Well, it’s not wrong, but there is one more thing which is crucial for non-citizens in the US, maybe even more than Green Card, it’s Individual Tax Identification Number (ITIN).
What is an ITIN
Individual Tax Identification Number (ITIN) is issued by the Internal Revenue Service Department (IRS) to people ineligible for a Social Security Number (SSN) irrespective of their immigration status. Isn’t it a very wise idea to not be casual with your federal taxes, especially when you are not a citizen?
Common Issues while Obtaining ITIN
The process of obtaining an ITIN is difficult and cumbersome and if professional advice is not sought, also prone to multiple errors adding to the tiresome process. Most people hire a lawyer when their ITIN application has already been returned to them a couple of times and some good billable months have already been wasted.
Having proper income tax returns largely impacts the “good character” for people who wish to legalise their immigration status and thus having an ITIN and filing proper tax returns with that ITIN is indispensable. Immigrant workers are subject to minimum tax withholdings unless they have an ITIN. Also, renewing the ITIN is another task you have to look into.
Time Taken to Obtain ITIN
From January to April, the IRS has the highest processing work, but outside it, it usually takes 42 days for ITIN to arrive. Since most of the ITIN filings require a tax return, they are usually filed in the time period of January to April which increases the time by 56 to 70 days. After your ITIN application is approved by the IRS, it takes them 42 to 56 days to process tax returns.
Thus, one can’t afford to make mistakes in Form W-7/Form W-7 (SP) and get their application back. It’s always better to seek professional help from financial experts like ourselves from the very beginning and get done with all the tax hassles. Not to forget all the leg-work involved and the confusions it creates, like:
- How to ascertain if one has received some benefits of a reduced tax withholding rate under an income tax treaty?
- What are the limitations of ITIN?
- How to get certified copies of identity documents from the concerned authorities? How to get a letter of denial from the Social Security Administration (SSA)?
- How to e-file the tax return using ITIN?
- Do you fall under the exceptions for an ITIN?
Difference between ITIN and SSN
SSN is for the US citizens and for authorized non-citizens residents (students on F1 visas, Green Card holders, etc). ITIN is for foreign-status residents including undocumented aliens, non-resident aliens, foreign companies, partnerships, and trusts require an ITIN.
SSN is needed to work, collect Social Security benefits and pensions, and are required in order to be eligible for other social services and every American has one as it serves National ID number for the purpose of various financial and medical services. ITIN is required to file for taxes by the non-residents.
At USAIndiaCFO, our Certified Acceptance Agent of the IRS in India and the US has more than 8+ years of experience in the field of providing financial and legal services to assist Indian ventures with their US expansion. We have successfully obtained 2500+ ITINs for our clients. We have been dealing with the IRS for more than a decade now and thus we have brought results even in situations where people were facing continuous rejections due to problems with incomplete information in Form W-7 or due to furnishing the supporting documents.
Your professional assistance is just a call away. Give us a ring at 7727887799 (also available on WhatsApp) or drop us an email containing your business requirements at email@example.com and our team will reach out to you within 2 hours.
We help you obtain an ITIN, along with providing a range of other services to take full accountability as your virtual CFO.
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