While establishing a US company or after the establishment process, everyone comes across ITIN and EIN. These numbers are the abbreviations for tax numbers issued to the US Internal Revenue Service (IRS) companies.
Our previous blog post covered what an EIN is and who needs it under which situations. In this blog post, however, we will discuss what an ITIN is, who needs it, and how to get it.
What is an ITIN?
ITIN is the individual taxpayer identification number. It is a nine-digit number, beginning with the number 9, issued by the IRS for your tax processes.
ITIN is issued to US taxpayers who do not have and are not eligible to obtain a Social Security number (SSN). It is issued regardless of immigration status because both resident and non-resident aliens may have US tax liabilities.
To obtain an ITIN, individuals must have tax liabilities and a requirement to file a federal income tax return.
What Is an ITIN Used For?
ITIN is only used for federal tax reporting. In the USA, the IRS issues the ITIN to those who do not have a Social Security Number. The aim is to help individuals comply with US tax laws.
Who Needs an ITIN?
The IRS offers an ITIN to foreign and other citizens who must have a requirement to file a federal income tax return but do not have a Social Security Number (SSN). For instance, if you live in the US as a resident, you must pay taxes on your earnings. In this case, as a resident alien who is a US taxpayer, you must obtain an ITIN to benefit from the tax office.
Those who need an ITIN are as follows:
- Non-resident aliens who are required to file a US tax return,
- US resident alien who is (based on days present in the United States) required to file a US tax return,
- Family members of a US citizen/resident alien,
- Family members of a non-resident alien visa holder,
- Individuals who need payment systems such as PayPal and Stripe.
How to Get an ITIN?
To obtain an ITIN, you must complete the W-7 Form via the IRS according to the specified regulation. Then, you have to write a letter introducing yourself and your company by addressing the IRS authority, notarize a copy of your passport, and submit its true copy of the original stamp version to the IRS with other documents.
Following the approval of your application, a notice containing your ITIN will be delivered to you by the IRS within an average of 12 weeks. Getting an ITIN is somewhat a complicated process. Our professional team can easily complete the process of obtaining an ITIN for you. If you apply following your company establishment, we instantly initiate the process and deliver your ITIN number to you digitally within 10-14 weeks. Contact us to receive your ITIN as well as services on many other issues.
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