July 25, 2024

Internal Revenue Service  (IRS) issues Individual Taxpayer Identification Number to all residents who have reporting requirement or U.S filing. These individuals get ITIN number through the Internal Revenue Code. Internal Revenue Service offers ITIN so that the people who don’t have Social Security Number can also pay taxes.

No, you don’t need to be confused with SSN (Social Security Number). ITIN is a specific nine-digit number which are issued for the people who do not qualify for Social Security Number.

The IRS – ITIN Relation

Internal Revenue Service is one of the important administrative revenue services of the central government. In 1996, IRS introduced Irs ITIN to help people pay taxes whether or not they have the Social Security Number. IRS issues ITIN’s irrespective of the status of the immigration.

The Internal Revenue Service provides several ways to apply for the ITIN number. You can directly letter, documents and W-7 form to the respective email address or can directly meet the ITIN assistance center. Basically, all the information about ITIN can get by calling IRS toll-free number.

What is Tax Identification Number?

Also known as Federal Taxpayer Identification Number or US tax Identification number, is a number used for tax purposes in the United States. Internal Revenue Service introduced Individual Taxpayer ID number so that people who are not eligible for social security number can also pay the taxes.

Other than ITIN number, we have two more numbers which are used for tax purposes:

  1. Employer ID Number – Employer ID Number or EIN is a federal tax identification number used for business purposes. Well, only employees are not eligible for EIN. Other unemployed and uneducated persons can also opt for EIN.
  2. Social Security Number – This is the most basic identifier which is used not only for tax purposes but also for personal identification.

A specific thing about ITIN is that it cannot make you eligible for availing social security benefits. You just cannot easily work in the U.S if you only have ITIN. For that, you need to get other tax paying numbers.

How To Renew ITIN?

Like other things, ITIN also has an expiry date. Therefore, you are required to renew (time and again) for availing the benefits.

Internal Revenue Service announced that if you do not use ITIN on any federal income tax return in the period of five years, your ITIN will be expired. Other ITIN’s which are not used on the federal tax return from last three years can also get expired.

Therefore, if you want to renew an ITIN,

You should file a tax return. The newest version of Form W-7 (posted in September) is required with the tax return for starting the renewing procedure.

Summing Up

ITIN is a very wonderful thing issued by the Internal Revenue Service. U.S/ Non-U.S can pay taxes through ITIN even if they don’t have other SSNs (Social Security Number or EIN (Employee Identification Number).

The primary motive of INR to introduce ITIN was to offer tax-paying service to all the U.S residents and immigrants’ residents. However, ITIN cannot be used for showing personal identification. For that, you must need social security number.

Form W-7 along with the tax return is used for Itin renewal (if expired). Therefore, renew the ITIN on time for completing your taxation activities.

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