ITIN is used by the investor when submitting the reports to the United States and is produced by the IRS, after examination of identification documents such as: passport, birth certificate, etc. This is the number that is produced for an individual in order to identify him with the tax authorities in the United States, since the individual is a “complete stranger” to the American tax authorities.
The identification number for tax purposes is equivalent to SSN for individuals who are not entitled to it and serves as a means of identification for the taxpayer versus the income tax in the United States at all times. ITIN does not confer social and insurance rights in the U.S. nor does it grant different status for immigration purposes, but is used for tax purposes only.
The number will always contain nine digits beginning with the number 9 and is valid for a long period but can expire after three years of non-use. The ITIN number is necessary to pay tax and to receive tax refunds for taxes that were originally deducted.
ITIN is used to identify an individual who is not eligible for a Social Security number because he or she is not a citizen or permanent resident. The primary use of the ITIN number is to file a U.S. income tax return; for the purpose of identifying companies or partnerships the EIN number must be used. Our office is authorized to sign a copy of the passport as a trustee of the source and to process the entire ITIN application, without the need to arrive at the embassy or send original documents.
The ITIN Application Is Usually Submitted In One Of Two Ways:
- Default for issuing ITIN – Attaching a federal tax return for that tax year and appropriate references to the report along with the application form – W7.
- Apply for ITIN ID number using additional exceptional options – relying on LLC memberships as partners or purchasing real estate and more. This way additional documents will be required.
After submitting the application along with the tax return, one has to wait about three months to get the ID number in the mail. As stated, the process is one-time and the ID number is valid for three years, if not used. The IRS periodically renews the validity of the identification numbers and it is advisable to check the validity of the number with our office.
Each year, the IRS sends alerts to about one million taxpayers, whose tax identification number (ITIN) will be revoked at the end of the tax year.
I’m Not A US Citizen Or A Resident Of The United States, So How Do I Know I Should Apply To ITIN?
In order to produce for yourself an American tax identification number a clear reason is required as stated. We have compiled for you the popular reasons –
- Acquisition of personal real estate in the USA
- Membership in an American LLC commonly known as “Group, Fund, Partnership”
- S. revenue generation during the tax year that requires reporting at the end of the year
- Trading in the capital market in an American account