How to Apply for an ITIN with the IRS Using Form W-7?
QUESTION: I need to apply for an Individual Taxpayer Identification Number (ITIN) with the Internal Revenue Service (IRS) for tax purposes. I have filled out Form W-7, Application for IRS Individual Taxpayer Identification Number, but I am not sure how to proceed with the vetting process and submission to the IRS. Can you guide me through the steps and requirements for applying for an ITIN using Form W-7?
EXPERT’S RESPONSE: An ITIN is a 9-digit number issued by the IRS to individuals who need a US taxpayer identification number but do not have and are not eligible to get a Social Security number (SSN). You may need an ITIN if you are a non-US resident who has to file a US tax return or report certain income or transactions to the IRS.
To apply for an ITIN, you need to fill out Form W-7, Application for IRS Individual Taxpayer Identification Number, and submit it to the IRS along with your tax return and proof of identity and foreign status. The IRS will review your application and issue your ITIN by mail within 8 to 12 weeks.
In this article, I will guide you through the steps and requirements for applying for an ITIN using Form W-7. I will also provide some tips and resources to help you understand the complex tax concepts and rules that apply to your situation.
Step 1: Determine if you need an ITIN and if you qualify for an exception
Before you apply for an ITIN, you need to determine if you actually need one and if you qualify for an exception to the tax return filing requirement. You need an ITIN if you are a non-US resident who has to file a US tax return or report certain income or transactions to the IRS, such as:
- Income from a US source that is subject to withholding tax where proper withholding was not done at source, such as interest, dividends, royalties, or rents
- Income from a US trade or business, such as self-employment or partnership income
- Income from the sale or exchange of US property, such as stocks, bonds, or real estate
- Income from gambling or lottery winnings in the US where proper withholding was not done at source
- Income from a trust, estate, or annuity in the US
- Income from a scholarship, fellowship, or grant in the US
- Income from a pension or retirement plan in the US
- Income from alimony or child support payments in the US
- Income from a claim or lawsuit settlement in the US
- Income from a debt cancellation or forgiveness in the US
- Income from a virtual currency transaction that is reportable under the IRS guidance
However, you may qualify for an exception to the tax return filing requirement if you meet one of the following conditions:
- You are a non-US resident who is eligible to claim the benefits of a tax treaty with the US and you only have income from a US source that is exempt from tax or subject to a reduced rate of tax under the treaty
- You are a non-US resident who is a partner in a US partnership that is engaged in a US trade or business and you only have income from the partnership that is effectively connected with the trade or business
- You are a non-US resident who is a beneficiary of a US trust, estate, or annuity and you only have income from the trust, estate, or annuity that is effectively connected with a US trade or business
- You are a non-US resident who is a spouse or dependent of a US citizen or resident and you qualify to be claimed as an exemption on their tax return
- You are a non-US resident who is a spouse or dependent of a non-US resident who has to file a US tax return and you qualify to be claimed as an exemption on their tax return
- You are a non-US resident who is a student, professor, researcher, or trainee who is temporarily in the US under an F, J, M, or Q visa and you qualify to be exempt from tax on your income from personal services under the IRS rules
- You are a non-US resident who is a spouse or dependent of a student, professor, researcher, or trainee who is temporarily in the US under an F, J, M, or Q visa and you qualify to be exempt from tax on your income from personal services under the IRS rules
If you qualify for an exception, you do not need to file a tax return with your Form W-7, but you still need to provide supporting documentation to prove your eligibility for the exception. You can find more information and examples of these exceptions on the IRS website https://www.irs.gov/individuals/how-do-i-apply-for-an-itin
Step 2: Fill out Form W-7 and attach your proof of identity and foreign status
To apply for an ITIN, you need to fill out Form W-7, which is available on the IRS website You need to provide the following information on Form W-7:
- Your name, mailing address, foreign address, date of birth, country of birth, and country of citizenship
- Your reason for applying for an ITIN, such as filing a tax return, claiming a tax treaty benefit, or opening a bank account
- Your US visa type and number, if you have one
- Your SSN or ITIN, if you have one
- Your spouse’s and dependents’ names, SSNs or ITINs, and relationship to you, if you are applying for them as well
- Your signature and date
You also need to attach your proof of identity and foreign status to your Form W-7. This means that you need to provide original documents or certified copies from the issuing agency that show your name, photograph, and foreign nationality. The most common document that meets these requirements is your passport. However, if your passport does not have a date of entry to the US, or if you are applying for a dependent, you may need to provide additional documents, such as:
- A US medical record, school record, or state identification card, if you are under 6 years of age
- A US school record, state identification card, or driver’s license, if you are between 6 and 18 years of age
- A US school record, rental statement, utility bill, bank statement, state identification card, or driver’s license, if you are 18 years of age or older
- A US visa, if you have one
You can find more information and examples of these documents on the IRS website https://www.irs.gov/individuals/revised-application-standards-for-itins
Step 3: Submit your Form W-7 and tax return to the IRS
Once you have completed your Form W-7 and gathered your proof of identity and foreign status, you need to submit them to the IRS along with your tax return, unless you qualify for an exception. You have three options to submit your application:
- Mail your Form W-7, tax return, and documents to the IRS at the following address: Department of the Treasury, Internal Revenue Service Center, ITIN Operation. P.O. Box 149342, Austin, TX 78714-9342. This is the option if you are applying on your own, without the help of an authorized agent. However, this option may take longer and will require you to send your original documents to the IRS, which may pose a risk of loss or damage.
- Apply in person using the services of an IRS-authorized Certifying Acceptance Agent (CAA). A CAA is a person or organization that is authorized by the IRS to assist applicants with their ITIN applications. A CAA can review your documents, certify that they are authentic, and submit your application to the IRS on your behalf. This option can save you time and hassle, and prevent you from having to mail your original documents to the IRS. However, this option involve a fee for the CAA’s service. You can find a list of CAAs on the IRS website.
- Make an appointment at a designated IRS Taxpayer Assistance Center (TAC). A TAC is a local office of the IRS that provides face-to-face assistance to taxpayers. A TAC can review your documents, certify that they are authentic, and submit your application to the IRS on your behalf.Your documents will be returned to you at the end of your appointment.This option can also save you time and hassle, and prevent you from having to mail your original documents to the IRS. However, this option may require you to travel to a TAC location and wait for an available appointment. You can find a list of TACs on the IRS website.
After you submit your application, the IRS will process it and issue your ITIN by mail within 8 to 12 weeks. You can check the status of your application by calling the IRS at 800-908-9982 (US only) or 267-941-1000 (international).
How much do we charge for our service?
If you need help with your ITIN application using Form W-7, we offer a professional and affordable service that can save you time and hassle. We have a team of qualified and experienced CPAs who specialize in international tax and accounting. We can prepare and file your Form W-7 and tax return for you, as well as advise you on the best tax strategies and solutions for your situation.
Our fees for filing Form W-7 and tax return for a non-US resident can be found at the link here
How to contact us for help?
If you are interested in hiring us for filing Form W-7 and tax return for you, or if you have any questions or concerns about your tax situation, you can contact us by filling out the form below. We will get back to you within 24 hours and schedule a free consultation with one of our CPAs. We look forward to hearing from you and helping you with your tax needs.
How to learn more about the complex tax concepts and rules?
If you want to learn more about the complex tax concepts and rules that apply to non-US residents who need an ITIN, you can check out the following resources:
- The IRS website, which provides the official forms, instructions, publications, and guidance on various tax topics and issues. You can find the relevant information for your situation by searching for “Form W-7”, “ITIN”, “foreign person”, or “tax treaty”.
- The video below, which explains the basics of ITINs, who needs them, how to apply for them, and what documents are required. This video is produced by O&G Accounting, a reputable and reliable accounting firm that specializes in international tax and accounting.
Introduction to the IRS Individual Taxpayer Identification Number (ITIN)
