Individual Taxpayer Identification Number (ITIN)
An ITIN is a 9-digit number issued by the U.S. Internal Revenue Service (IRS) to individuals who are required for U.S. federal tax purposes to have a U.S. taxpayer identification number but who do not have and are not eligible to get a social security number (SSN). You have to provide a solid reason to the IRS, why you need an ITIN. Foreign (Israeli) investors, who derive an income from the U.S., have to apply for an ITIN to file a U.S. tax return. ITINs do not serve any purpose other than tax reporting. The processing time to issue an ITIN is up to 11 weeks (COVID-19 created additional delays).
An ITIN that hasn’t been included on a U.S. federal tax return at least once in the last 3 consecutive tax years will expire. For example, If your ITIN wasn’t included on a U.S. federal tax return at least once for tax years 2017, 2018, or 2019, your ITIN will expire on December 31, 2020. You need to take action to renew it. When an individual renews their ITIN, the previously assigned number is renewed.
Supporting Documentation Requirements
You must submit documentation to establish your identity and your connection to a foreign country (“foreign status”). The documentation you provide must be current (that is, not expired). You must submit original documents that support the information provided on Form W-7. In most cases, this means that you have to send your original passport physically to the IRS, unless you use the service of a Certifying Acceptance Agent (CAA).
​
Apply for an ITIN Through a Certifying Acceptance Agent
A Certifying Acceptance Agent (CAA) is authorized by the IRS who can verify original documentation for the applicant. Our firm is a Certified Acceptance Agent. This is a huge advantage, as you are not required to send your original documents to the IRS. Instead, we are sending a certified copy of your documents. This saves you months of being without your original documents (usually passport). Our office submits ITIN applications on a weekly basis.
An expired ITIN might lead to delays in refunds
If you need to file a tax return and your ITIN has expired or will expire before you file in 2021, we recommend you submit your renewal application now to prevent potential delays in the processing of your return. If you use an expired ITIN on a U.S. tax return, it will be processed and treated as a timely filed, but without any exemptions and/or credits claimed and no refund will be paid at that time. You will receive a notice explaining the delay in any refund and that the ITIN has expired.
Related Topics: