Facts About the Individual Taxpayer Identification Number

There is a lot of confusion present regarding the use of individual taxpayer identification number (ITIN). An ITIN is basically a tool that IRS (Internal Revenue Service) uses to make sure that every person residing in the US pays taxes even without a social security number.

Despite the fact that IRS limits the use of ITIN for tax processing only, many people believe that after obtaining this number, they will be eligible to legally work in the US. Well, this is not true in reality. Read on to become familiar with some facts about ITINs that will clear all the confusions present in your mind regarding the use of these numbers.

  • Internal Revenue Service began to issue ITINs in 1996 so that foreigners and other individuals who are ineligible to get a social security number (SSN) can also file their tax returns in compliance with US tax laws. This number is different from the SSN issued to the citizens of America.
  • Since 1996, individual taxpayer identification numbers have allowed more people to pay their taxes and helped IRS to maintain a record. A large number of undocumented immigrants have been reported to pay more than 300 million dollar in taxes in 2011.
  • It is important to note that having an ITIN does not make you eligible for the tax benefits received by US citizens and other taxpayers.
  • Individual taxpayer identification number does not authorize you to legally own a business in the US. In addition, it is not a valid identification of your immigration status.
  • However, you may use your ITIN for opening an interest-bearing account as many banks accept this number as the proof of your identity.
  • Some states also accept ITINs for provision of a driver’s license or state identification card.
  • As ITIN is designed for making tax payments, you should not consider it as an immigration-enforcement tool. IRS does not share any information of the applicants to other US agencies or organizations unless ordered by law.
  • People often confuse ITINs with SSNs due to the similar 9-digit appearance of the numbers. Social Security Administration issues a social security card to the recipient with the SSN mentioned on it. To make it different from a SSN, IRS issues a letter instead. It is important for ITIN holders to keep this letter safely.

What makes you eligible for an ITIN?

Every individual who is not able to get a social security number is basically eligible to apply for an individual taxpayer identification number. If you are a US resident or non-resident alien having tax filing requirements and do not have a social security number, then you need to obtain an ITIN. You also need to obtain this number for your dependents and spouse to make a claim for their exemption on your tax return. You need to get an ITIN for them, only if they are not eligible to get a SSN.

Whether it is a SSN or an individual taxpayer identification number that you need, make sure you obtain one before the beginning of the new tax season.

If you want to apply for an, Individual Taxpayer Identification Number, or ITIN tax number and have any other questions, please feel free to contact us at 888-509-3616. If you have any suggestions please share those with us as well. Freedomtax ITIN Number has a professional team of IRS Certifying Acceptance Agents, and tax accounting professionals with more than 16 years of experience, helping immigrants with their ITIN application. Freedomtax can also help immigrant entrepreneurs incorporate a business in the USA. Freedomtax ITIN Tax Number Online services provides Quality, Professional Service with a Family Feel.

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