For Non-Residential Indians (NRIs) who have gone to the USA for better job opportunities, there is a common piece of advice given to them that “Getting a Green Card is crucial for progress in America”. While this advice is not wrong, there is another thing that is equally crucial for non-citizens in the US, and perhaps even more important than a Green Card – obtaining an Individual Tax Identification Number (ITIN). This is also relevant for NRIs in India who earn income in the US and need to file taxes there. Therefore, it is important for NRIs to understand the significance of obtaining an ITIN number in India, depending on their circumstances.

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?

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 legalize 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.

From January to April, the IRS has the highest processing work but outside it, it usually takes 42 days for ITIN to arrive. However, as the majority of the ITIN applications are needed to be filed with 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 between 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?

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, we specialize in providing financial and legal services to assist Indian ventures with their US expansion. As a Certified Acceptance Agent of the IRS in India and the US, we have over 8 years of experience in the field and have successfully obtained more than 2500 ITINs for our clients. We understand the importance of obtaining an ITIN number in India for NRIs who earn income in the US and need to file taxes there. Over the past decade, we have dealt with the IRS on behalf of our clients and have achieved successful outcomes, even in situations where clients faced continuous rejection for months due to incomplete information in Form W-7 or issues with supporting documents. Our team has the expertise and experience to guide clients through the ITIN application process smoothly and efficiently.

Looking for professional assistance for your business? Contact us today! Our team is just a phone call away at +91 9828280505 (also available on WhatsApp) or you can drop us an email at hello@usaindiacfo.com with your business requirements. We guarantee to respond within 2 hours and help you with your needs. Don’t hesitate to reach out!

We help you in obtaining your ITIN, along with providing a range of other services to take full accountability as the virtual CFO to your business.

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