Introduction to U.S. Individual Tax Number (ITIN)

The so-called ITIN (Individual Taxpayer Identification Number ITIN) is a number specially set up by the Internal Revenue Service (IRS) for non-US residents who have tax filing requirements. Beginning with the US personal tax filing in 1996, the US Internal Revenue Service requires tax filers who do not have a Social Security Number (SSN) to provide a personal tax number for tax filing. Therefore, the ITIN number is an important basis for US non-resident personal tax (1040NR) declaration. And having an ITIN has no effect on the application of non-immigrant visa or immigrant visa.

Who needs an ITIN number?

Generally speaking, two types of people need ITIN numbers.

The first category: non-US residents tax filers

If you are a non-U.S. resident, do not have a U.S. Social Security Number (SSN), and have business income, real estate rental income, capital gains income or other investment income in the United States, the income does not have a bilateral tax exemption agreement established between the United States and your country of residence Within the regulations, all non-US residents must report personal tax. The ITIN number is a mandatory requirement for tax declarations for non-US residents. The U.S. Revenue Service requires that the U.S. personal tax form (1040NR) and ITIN number application form (Form W-7) of the non-U.S. resident tax filer of the year must be submitted to the tax bureau together.

From December 17, 2003, the US Internal Revenue Service stipulated that the ITIN application and the 1040NR of the year must be submitted at the same time. Therefore, the first year of tax returns for non-US residents must be the ITIN application and 1040NR at the same time. After the tax filer obtains the ITIN that year, the number is valid for five years. If you continue to declare non-US resident tax within the validity period of the number, you can always use this ITIN number. After the number expires, if you need to file a tax return, you need to apply for a new ITIN number.

The second category: those who apply for tax incentives in the United States and other countries or meet the requirements for tax information disclosure and withholding in the United States

In addition, the US Internal Revenue Service also stipulates that in some special circumstances, applicants can apply for an ITIN number separately, and do not need to submit it with the tax form. These special cases mainly focus on (but not limited to):

Apply for an ITIN number to enjoy tax incentives in the United States and other countries, such as withholding income exemptions or reductions; for example, those who open online stores or publish e-books on American websites will face high income withholding, but if you apply for ITIN The number can enjoy preferential tax rates for copyright in China and the United States.
The U.S. Internal Revenue Service requires non-U.S. residents' income withholding or information disclosure compliance requirements in the United States; for example, if a non-U.S. resident establishes a partnership in the United States, the partnership needs to prepare K1 (Partner Allocation Form) in the fiscal year. Non-U.S. residents can apply for an ITIN to meet the K1 form submission obligation.
Non-US residents sell real estate in the United States. The U.S. Revenue Service stipulates that when non-U.S. residents sell real estate in the United States, 10% of the sales income must be withheld. The ITIN number is a prerequisite for completing real estate transactions and income withholding.

The ITIN number applied through this channel is also valid for five years. After the expiration date, you need to apply for a new ITIN number again.

ITIN application method

(1) Individual application:

The U.S. Revenue Service stipulates that starting from January 1, 2013, non-U.S. residents must submit the original passport or a certified passport issued by the passport issuing authority to apply for an ITIN number on their own. For Chinese citizens, the passport issuing authority in China is the local public security entry and exit agencies, and there is no service for authenticating Chinese passports. Therefore, ITIN applicants must submit the original Chinese passport together with the ITIN application, otherwise the ITIN number application will be rejected . If you are a Canadian citizen, you can apply for a passport certification from Passport Canada for a fee, so that you can use the passport certification instead of the original passport to apply for an ITIN.

(2) Apply through the designated agent for certification:

The U.S. Revenue Service stipulates that the ITIN number can be applied for through the Certifying Acceptance Agent (Certifying Acceptance Agent) of the U.S. Revenue Service. The U.S. Taxation Office authorizes ITIN to certify designated agents, to certify the applicant’s passport and other documents on behalf of the tax bureau, and to help the applicant complete the ITIN application work. Applicants do not need to submit to the tax bureau to apply for ITIN through certified designated agents Original passport or other ID documents. Mr. Wang from Huashang Finance and Taxation Network is the official authorized and authorized certification agent of the US Internal Revenue Service. Customer materials certified and signed by Mr. Wang can be sent to the US Tax Office for ITIN application without submitting the original passport or other ID documents. The final review.

In the Los Angeles area, Huashang Finance and Taxation Network is an IRS-certified designated agent for ITIN application services. Applicants do not need to mail the original passport to apply. We have applied for ITIN on behalf of our clients many times and have successfully obtained the ITIN. If there are problems in the process, we will continue to follow up and take responsibility.

ITIN approval

After receiving the ITIN application, the ITIN Processing Center of the U.S. Taxation Office will generally inform the applicant of the result of the application in written form within six to eight weeks. Generally speaking, there are three results:

The ITIN application is approved. The applicant's ITIN number is attached to the letter.
The ITIN application was rejected. In the letter, the tax bureau clearly informed that the applicant did not meet the ITIN application requirements, and the ITIN was rejected.
The ITIN application was temporarily shelved. In the letter, the tax bureau informed the applicant that the materials provided were incomplete or the content of the application was incorrectly filled in, and requested prompt correction before submitting it to the tax bureau for processing.

For overseas applicants, due to the long mailing time of regular mail, usually applicants will get the ITIN result in about twelve to fifteen weeks. The original passport attached to the individual application will be returned separately by the tax bureau by ordinary mail, and no express service is provided. This method has a high rate of passport loss and a long turnaround time. Therefore, we recommend that customers use our certified designated agent service to avoid the worry of losing their passports.

Use of ITIN

The ITIN number is a special tax filing number provided by the U.S. Taxation Office, and is only used for tax filing or U.S. tax-related purposes. ITIN cannot be used to apply for social welfare in the United States, and it has no effect on US immigrant visas and non-immigrant visas.