Let’s talk about what is an ITIN and how do I get one?
So today we’re asking the number one question, the most fundamental question about all of this, which is what is an ITIN and how do I get one?
And ITIN is called in individual tax identification number is issue to you as an individual, as a person. It’s not like an EIN where EIN is issued to each business entity. So, for example, an LLC, each LLC that’s registered has only an ITIN is one per person and once issue doesn’t change.
What is an ITIN?
ITIN was brought in by the IRS back in 1996 for individuals were physically present in the United States or even outside the United States, but they had a U.S. tax reporting requirement whether they had to file taxes and pay taxes.
They didn’t have a social security number. So then they were kind of like the situation.
How do they go about doing this?
So the IRS brought out ITINs so that they could do so. And today we have millions and millions of individuals, not only in the United States, but all around the world who have tax reporting requirements or taxpayers who have to make that associate with the U.S. and they need the ITIN in order to be able to file that tax and pay that tax.
So that’s what the ITIN is. And now today, there’s so many things that require the ITIN where we go back to our saying that’s in all the other article where when you’re Non U.S. citizens the ITIN is honestly the good everything.
Uses of ITIN
You’re going to run it in every aspect of your life, whether it’s applying for a credit card, opening up a bank account, filing and paying taxes, or opening up accounts online with like Amazon, eBay, Shopify.
If it receives certain types of incomes like royalties, dividends, pensions, annuities, rental income, gambling income, this if you want to open a brokerage account, you want to take a license exam, whether it’s for nursing or engineering or anything.
There’s so many different places you’re going to run into the fact that you need to have an ITIN. So that’s what ITIN is, how it all came about, what it can do now,
How Do You Get an ITIN
If, first of all, you have to qualify for one and second, you need to correctly fill out the paperwork. People just think it’s just a W-7 form and that’s how you get an ITIN. It is not just the receiving form.
Yes, that’s one of the paperwork that go with the application. But it’s not the only thing.
You have to also provide documentation as well the two documentation requirements or identification and also supporting identification is generally satisfied with a valid passport.
If you don’t have a valid passport, then it’s can be substituted with two alternative documents and IRS the list of alternatives you could use in place a passport if you don’t provide those automatic rejection, if the application itself is not filled correctly.
Automatic rejection. The second documentation requirement is supporting documentation that’s traditionally satisfied with an income tax return form. If you cannot provide an income tax return form, we don’t need to fill out one that you have to qualify for one of the five ITIN exception categories and provide the documentation from the category you qualify for.
If you don’t do that, then again, automatic rejection if you do that. But for example, let’s say you provide the documentation that’s from the category.
You qualify for those exemption categories, but it’s not in the right format or it’s not correct. Again, that’s automatic rejection. So that’s how you get an ITIN but keep in mind, there’s a lot of nooks and crannies in this application where it can all go wrong and get rejected. That’s why we really try to emphasize to people, yes, you can do this application on your own.
It seems simple, but there’s so many ways they can go wrong.
Why You Should go with ITIN Certified Acceptance Agent
We always recommend people work with an IRS certified acceptance agent like we are, who are specially trained in this process to make sure that all of these things are checked off and done correctly by the book so that you don’t run into issues, you don’t get rejected, so you can get ITIN successfully.
And have that peace of mind and also say some time granted that’s it is working under normal circumstances.
Obviously, right now we’re going through covid and there’s extenuating circumstances where the processing is is delayed naturally, but under normal circumstances yes, working with an agent can save you a lot of time and headache. So we definitely recommend doing that.
What To Do Next
So that’s a little bit about the background and history of ITINs and
what it is?
what can do? and
how to get one?..
We hope this article was informative and helpful. It was a pleasure talking about it.
If you have any questions, post them below. If you want to speak to us directly you can e-mail us at firstname.lastname@example.org. And if you’re ready to sign up for the ITIN application service and would love to go ahead and click the link below to get started.
Start your ITIN application here: ITIN.com