Individual Taxpayer Identification Number
An Individual Taxpayer Identification Number (or ITIN) is a United States tax processing number issued by the Internal Revenue Service. It is a nine-digit number that begins with the number 9 and has a range of 70 to 99 (excluding 89 and 93) in the fourth and fifth digit, example 9XX-70-XXXX or 9XX-99-XXXX.[1] The IRS issues ITINs to individuals who are required to have a taxpayer identification number but who do not have, and are not eligible to obtain, a Social Security Number.
ITINs are issued regardless of immigration status because both resident and nonresident aliens may have Federal tax return and payment responsibilities under the Internal Revenue Code.[2] Individuals must have a filing requirement and file a valid federal income tax return to receive an ITIN, unless they meet an exception. An ITIN application cannot be filed electronically ( efile). The application, in most case should be accomplished with a federal income tax return.
An individual can file an ITIN application himself or herself. The applicant should submit original documents or file with a certifying acceptance agent. Certifying acceptance agents charge a fee, but original documents are not required if such an agent is used. An individual can obtain an ITIN for a spouse, parents, or children.
The program was created in 1996 for the purpose of tax filing of individuals without a social security account number. Receiving an ITIN number does not in itself confer the right to work and receive income in the United States.[3]
In 2006 1.4 million people used ITIN when filing taxes. Federal tax law prohibits the IRS from sharing data with other government agencies including the Department of Homeland Security, assuring unauthorized aliens[4] that the tax information will be confidential and will not be used to initiate removal procedures.[5][6]
ITINs are also used by real estate brokers to facilitate mortgages for unauthorized aliens.[7]
In addition to use by unauthorized aliens, ITINs are used by foreign investors in United States real estate. Such investors need ITINs to file federal and state tax returns to report rental income.[8] ITIN cannot be used to claim EITC, however child tax credit and Additional Child tax Credit can be claimed with ITIN. Most of the refundable credits can be claimed with ITIN except EITC.
[edit] References
- ^ "General ITIN Information". May 25, 2011. http://www.irs.gov/individuals/article/0,,id=222209,00.html. Retrieved September 28, 2011.
- ^ NY Times, April 16, 2007
- ^ NY Times,April 15, 2003
- ^ Alien vs Immigrant Comparison Chart
- ^ U.S. Tax Program for Illegal Immigrants Under Fire NPR, March 5, 2007.
- ^ Boston Globe, February 17, 2008
- ^ Politics Undercut Mortgages For Illegal Workers by Nancy Mullane. Morning Edition, National Public Radio. 4 Nov 2008.
- ^ Central Florida Vacation Rental Homeowners' Tax Guide p.14
