Do you ever wonder what an ITIN is or even why you would need one? Don’t worry, we’ll cover everything in this article about the IRS ITIN application by Form W-7. Easy peasy!
First things first, break down the term ITIN. ITIN stands for Individual Taxpayer Identification Number. In other words, it is a nine-digit number provided to individuals who need to file tax return purposes but are not eligible to receive a Social Security Number (SSN).
The number is meant to allow the IRS to trace tax payments and ensure that even those individuals ineligible for SSNs remain in consonance with U.S. tax laws.
Who Needs an ITIN?
Not everybody needs an ITIN. You should apply for one only if:
- You are not eligible for a Social Security Number (SSN).
- You need to file a S. tax return or claim a tax benefit.
- You are a nonresident alien required to file a tax return.
- You are a spouse or dependent of a U.S. citizen or resident alien.
For example, if you are a student or an alien worker in the United States and have to file taxes but do not get a Social Security Number, you will need to apply for an ITIN.
What is Form W-7?
Form W-7 is an official document showing the form one might use to apply for their ITIN. You fill this and forward it to the IRS.
The application form asks for various information like your name, address, country of citizenship, among many others. Any information you put on the correct form has to be completely filled to avoid your application from being delayed in processing.
Why Form W-7 Important?
Form W-7 is essential because it’s the only way to obtain an ITIN. You will not be in a position to do any of these if you don’t have an ITIN:
- File your U.S. taxes.
- Claim tax benefits you may be eligible to receive.
- Get refunds from the IRS, should you overpay on your taxes.
In short, if you are required to pay taxes but cannot obtain an SSN, then Form W-7 is your ticket to staying compliant with U.S. tax laws.
How to Apply for an ITIN on Form W-7
How do you apply for an ITIN via Form W-7? Honestly, it is not rocket science. Let’s get into the nitty-gritty details:
- Obtain Form W-7
You can obtain this Form W-7 from the IRS website or in any IRS office.
- Fill out the Form
Be very careful when filling out the very detailed and step-by-step instructions for completing the Form W-7.
Some of the information you will be asked to input includes your legal name, country of origin, visa status while within the United States, and your foreign tax identification number if you have one.
- Submit Supporting Documentation
With Form W-7, you must also submit original or certified copies of supporting documentation establishing your identity as an individual and as a foreign national. Examples of these documents can include a copy of your passport and/or visa, as well as a foreign birth certificate.
For your convenience, be sure to note that if your passport is valid and holds a U.S. visa, you are not required to forward your passport and visa.
- Submit Your Application
Mail Form W-7 with supporting documents to the IRS. You can also apply in person at an IRS Taxpayer Assistance Center or through an IRS authorized CA. If you are forwarding your application along with your tax return, send both.
- Wait for IRS Response
Once your application has been processed, the IRS will mail your ITIN. This may take about 6 to 10 weeks. Never forget to have your ITIN ready during all your future tax filing.
Common Mistakes to Avoid
Applying for an ITIN with Form W-7 is not tough work, but there are some common mistakes that tend to happen in the process. Let’s take a look at some of them so you can avoid them:
- Incorrect Information: Always verify the information you generate. Mistakes in any information provided can cause delays in the whole process.
- Incomplete Documents: Ensure that you provide all the documents that are required. Incomplete documents means your application can be declined.
- Expired Documents: If your passport or visa has reached the expiry date, then you cannot be allowed entry with such. Always update your documents before the expiry date.
- Failure to File for Tax Return: If you need an ITIN to file a return, then do not forget to include it with your application. Without the ITIN, your application would be incomplete.
How Long Does The ITIN Stay Valid?
Your ITIN has an expiry date. You might even lose it if:
- You haven’t filed for tax return and have not shown the use of your ITIN for three consecutive years.
- An IRS letter sent to you indicates that the ITIN needs to be renewed.
If the ITIN expires and you do not renew it, then delays may happen with your tax returns or the process of your tax return.
How to Renew an ITIN
To renew your ITIN, you have to fill up another Form W-7. You have to submit it to the IRS before the tax filing date. Be sure to send it before issues happen.
Frequently Asked Questions (FAQs)
Do I get my ITIN online?
No, you cannot get an ITIN online. Just send the Form W-7 with necessary supporting documentation to the IRS, or better still, submit your application in person.
Does the IRS charge a fee to issue an ITIN?
No, the IRS does not charge a fee to process an application for an ITIN.
What happens if I do not apply for an ITIN?
If you need an ITIN but you fail to receive it, you cannot e-file your taxes in the United States. This will leave you with the risk of penalties and even losing tax relief.
Conclusion
Generally, applying for an ITIN through Form W-7 is a fundamental process people who are not eligible for an SSN must undertake to be in compliance with the tax laws of the United States of America.
Now, simply follow the process we have laid out for you and you will be ready to apply for your ITIN. Remember that double-checking the proper information and complete documents will avoid delaying the ITIN issuance. And so, now that you know it, you are one step closer to smoother sailing through the U.S. tax system!
For more detailed information on Individual Taxpayer Identification Numbers (ITINs), including how to apply and legal considerations, visit the IRS official page on ITINs.
For further assistance with ITIN applications, check out our ITIN page.