The ITIN is the Individual Taxpayer Identification Number created in July 1996 by the IRS (Internal Revenue Service) in order to allow foreigners and those US residents not eligible for a Social Security Number to file their US income tax returns and thus fulfill their tax obligations.
The ITIN is issued by the IRS when individuals need to have an identification number in the US to file their taxes, and these people do not have or do not meet the requirements to get a Social Security Number (SSN) from the Social Security Administration (SSA).
What is an ITIN for anyway? As we already said, the IRS issues ITINs to help people comply with US tax laws, making it more efficient to process their returns, pay taxes, and receive refunds from the US treasury.
The ITIN is issued regardless of the individual's immigration status because both resident and non-resident aliens may be required to file a US tax return or informational return under the Internal Revenue Code. It is also important to clarify that the ITIN was not created for any other purpose than to file a federal tax return, but nowadays we have noticed that banks have been using it to compute good paying credits for their customers who have an ITIN number.
Another common misconception is that the ITIN entitles the holder to work legally in the United States, and this is not true, nor does it entitle the holder to receive social security benefits. The good news however, is that if over the course of one's working life the taxpayer becomes eligible for a social number, all tax payments will be directed to your social number account and you may then be eligible for retirement or other benefits thereafter.
The ITIN is valid for 03 years from its issue, but it will remain valid if the taxpayer annually declares its taxes to the IRS, without the need, in this case, to renew it.
If you would like to learn more about ITIN or apply for your federal number, contact us today and we will help you through the process.
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