What is an ITIN?

An Individual Taxpayer Identification Number allows you to file an income tax return if you do not have a Social Security Number (SSN) and cannot get one from the Social Security Administration. The use of ITINs began in 1996. Since that time, over 7 million ITINs have been issued by the Internal Revenue Service (IRS). An ITIN is a nine-digit number, which contains the number 9 and has a 7 or 8 in the fourth digit.

Why should I file a tax return?

• If you earned income throughout the year and owe taxes, it is against the law not to file an income tax return.
• If you earned income throughout the year and had taxes withheld, you may be due a refund from the government.
• For some immigration applications, you must show that you filed a return.
• Filing a return proves good moral character and a continued presence in the United States.

How can I use an ITIN?

You can use the ITIN to file a tax return. You can use the ITIN to amend returns filed in the past with false Social Security numbers. You can use the ITIN to file delinquent returns. If you worked using a false Social Security number, you can file your tax return with the ITIN using the income earned under the false Social Security number—the IRS does not care that you used a false Social Security number. Many banks accept ITINs for proof of identity when opening up bank accounts. You may be able to use the ITIN to claim dependent exemptions and the child tax credit on your return for your children.

An ITIN is not an employment number or authorization for work within the United States. An ITIN does not allow you to claim the Earned Income Tax Credit (EITC) on your return or claim Social Security or other public benefits, such as food stamps.

An ITIN does not change your immigration status.

How do I apply for an ITIN?

You can apply for an ITIN by filling out a Form W-7 and showing documents that prove foreign status and identity. Form W-7 and its instructions are available in Spanish. Get Form W-7 by calling 1-800-829-1040 or by downloading the form from the IRS Web site. Or you can visit any IRS office or contact Legal Services of New Jersey's Tax Legal Assistance Project at 1-888-576-5529.

You can fill out a Form W-7 for a dependent under the age of 14 and sign the dependent’s application if you are the dependent’s parent, power of attorney, or guardian.

You must show foreign status and identity to the IRS with your application. You may present a passport, birth certificate, foreign government’s driver’s license, or any official document issued by a foreign government to prove your foreign status. To show identity, you may also use your passport. If you do not have a passport, you may use the documents listed on the W-7 instructions. The documents must be current and original, certified by the issuing agency or signed by a United States notary. You must list your birth date, mailing address, and immigration status.

You may apply for an ITIN at any time.

After filing your W-7 application, it takes four to six weeks to get the ITIN letter. If you do not hear from the IRS in that time, call the IRS at 1-800-829-1040. If the IRS requests more information, respond to the IRS within 45 days, or you may have to file a new application.

Will the IRS report me to immigration?

The IRS takes privacy laws very seriously. The IRS cannot report you to immigration or UCIS for getting an ITIN. A court, however, can make the IRS release information about you if you are in deportation proceedings or under suspicion for terrorist activities.

How much does an ITIN cost?

There is no cost to getting an ITIN. There are places that will prepare your ITIN application for free, such as an IRS Volunteer Income Tax Assistance site (VITA) and Tax Counseling for the Elderly (TCE). If an acceptance agent or tax preparer fills out the Form W-7, there may be a charge. Acceptance agents are persons or entities that have entered into a formal arrangement with the IRS that permits them to assist immigrants in obtaining ITINs.

What should I do if I later receive a valid Social Security number?

You must notify the IRS of your Social Security number. The IRS will combine your ITIN records with your new SSN records. Your wages, earned before under the ITIN, will be reported to the Social Security Administration under your Social Security number, and the benefits to which you may be entitled in the future will increase.

This article is from the March 2009 issue of Looking Out for Your Legal Rights^®.