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What is an ITIN Number ?

Many people ask “What is an ITIN Number?”
Individual Taxpayer Identification Number (ITIN) is a tax processing nine digit number number issued by the IRS. There are many reasons you may need an ITIN. Ajax Accounting Services can help clients in obtaining an Individual Taxpayer Identification Numbers (ITIN).

Some of the most common reason are:
• You own a U.S. rental property
• You sold U.S. real estate
• You had gambling winnings
• You are the spouse or dependent of someone who files a US tax return
• You are receiving a royalty or pension income which is entitled to tax treaty benefits
• You have a U.S. income tax filing requirement
• The ITIN application is for an individual who needs a US tax identification number but are not eligible for a Social Security Number (“SSN”).

Persons eligible for a SSN are; US citizens, lawful permanent resident, or individuals with a valid work permit. If you are eligible for a SSN, you do not need to apply for a ITIN.

How to apply For ITIN Number Application?

To apply for an ITIN, you will need to complete the Form W-7 and submit it to the IRS with required documentation. The following documents are accepted as proof of identity and foreign status:

  •  Passport
  •  Driver’s license
  • State ID card
  • Foreign passport
  • Military identification card
  •  Alien registration card (green card, I-551)
  • Other government issued identification card
  • School ID card
  • Health insurance card (not a Medicare card)
  • W-2 form
  • 1099 form
  •  Bank statement
  • Tax return from the previous year
  •  Letter from employer on company letterhead verifying employment and income

Is the ITIN a way for the government to track undocumented immigrants?

The ITIN is not a way for the government to track undocumented immigrants. The ITIN is only used for tax purposes and is not connected to any other government agencies. Additionally, your ITIN will not expire as long as you continue to use it on your tax returns. However, if you do not use your ITIN on a tax return at least once in the last three years, your ITIN will become inactive. If your ITIN becomes inactive, you will need to reapply for a new one.