What is the ITIN (Individual Tax Identification Number) in the USA and How to Obtain it?

The United States stands out as an international center for trade and investment and is also known for its tax obligations. The complex U.S. tax system imposes various obligations on both domestic and foreign individuals. Foreign nationals engaged in business activities, making investments, or having financial ties in the U.S. for specific reasons are required to submit tax returns. For example, an owner of a Single-member LLC must have an ITIN in the tax return instead of the company's EIN number. In this process, the ITIN (Individual Tax Identification Number), a special identification number defined by the United States Internal Revenue Service (IRS), is of critical importance. So, what is ITIN, who needs this number, and how does the application process work? Here's everything you need to know about ITIN...

What is the ITIN (Individual Tax Identification Number) in the USA? The ITIN, assigned by the United States Internal Revenue Service (IRS), is a special identification number to fulfill tax obligations. Foreign nationals involved in financial or commercial activities in the U.S. who do not have a Social Security Number (SSN) right, acquire and use this number in their tax declaration processes. ITIN is only given for the purpose of submitting a tax return and does not grant work or legal residence rights in the U.S. However, this number is critically important for an individual or institution within the U.S. tax system to fully and correctly meet their tax obligations.

Do I Need to Obtain an ITIN? If you are earning income in the U.S. and are not eligible for an SSN, you may need to apply for an ITIN. Additionally, if you own a company and will be filing tax returns at the end of the year or want to open a PayPal account, you need to get an ITIN.

How to Obtain an ITIN? Form W-7: Initially, you can download the "Form W-7, Individual Taxpayer Identification Number" application form from the official IRS website. Documents: Along with the form, you need to submit documents that validate your identity and foreign status. Application: You can send the form and the necessary documents to the IRS by mail.

Who is Authorized to Submit an ITIN Application? You can apply directly to the IRS or through Acceptance Agents authorized by the IRS. At TAM Accounting, you can make your ITIN applications easily, quickly, and reliably with our agents.

When Will I Receive the ITIN Result? After the approval of your application, the ITIN is typically mailed to your address within 8 weeks. However, this duration may vary depending on application volume and season.

If you are identified as a taxpayer in the United States and do not have SSN rights, obtaining an ITIN is not just a recommendation but also a legal requirement. It's a critical step to fulfill your tax obligations in the U.S. accurately and completely. However, this process can be complex and challenging, especially when dealing with international provisions and regulations. At this point, the professional team of TAM Accounting is proud to offer guidance and support for your ITIN application. Our expert team is by your side to manage your application process most efficiently and smoothly. If you want to complete your ITIN application flawlessly, accurately, and quickly, you can contact the TAM Accounting team and get professional support.