Individual Taxpayer Identification Number
Encyclopedia
An Individual Taxpayer Identification Number (or ITIN) is a United States tax
processing number issued by the Internal Revenue Service
. It is a nine-digit number that begins with the number 9 and has a range of 70 to 99 (excluding 89 and 93) in the fourth and fifth digit, example 9XX-70-XXXX or 9XX-99-XXXX. The IRS issues ITINs to individuals who are required to have a taxpayer identification number but who do not have, and are not eligible to obtain, a Social Security Number
.
ITINs are issued regardless of immigration status because both resident
and nonresident aliens may have Federal tax return
and payment responsibilities under the Internal Revenue Code
. Individuals must have a filing requirement and file a valid federal income tax return to receive an ITIN, unless they meet an exception.
The program was created in 1996 for the purpose of tax filing of individuals without a social security account number. Receiving an ITIN number does not in itself confer the right to work and receive income in the United States.
In 2006 1.4 million people used ITIN when filing taxes. Federal tax law prohibits the IRS from sharing data with other government agencies including the Department of Homeland Security, assuring unauthorized immigrants that the tax information will be confidential and not be used to initiate removal procecedures.
ITINs are also used by real estate brokers to facilitate mortgages for unauthorized immigrants.
In addition to use by unauthorized immigrants, ITINs are used by foreign investors in United States real estate. Such investors need ITINs to file federal and state tax returns to report rental income.
Taxation in the United States
The United States is a federal republic with autonomous state and local governments. Taxes are imposed in the United States at each of these levels. These include taxes on income, property, sales, imports, payroll, estates and gifts, as well as various fees.Taxes are imposed on net income of...
processing number issued by the Internal Revenue Service
Internal Revenue Service
The Internal Revenue Service is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue...
. It is a nine-digit number that begins with the number 9 and has a range of 70 to 99 (excluding 89 and 93) in the fourth and fifth digit, example 9XX-70-XXXX or 9XX-99-XXXX. The IRS issues ITINs to individuals who are required to have a taxpayer identification number but who do not have, and are not eligible to obtain, a Social Security Number
Social Security number
In the United States, a Social Security number is a nine-digit number issued to U.S. citizens, permanent residents, and temporary residents under section 205 of the Social Security Act, codified as . The number is issued to an individual by the Social Security Administration, an independent...
.
ITINs are issued regardless of immigration status because both resident
Resident Alien
Resident Alien is the debut album from the British glam rock band Spacehog. Released by Elektra Records on 24 October 1995, the album was certified as gold on 29 July 1996 and included the hit single "In the Meantime", which reached the top of the Mainstream Rock Tracks chart in the United States,...
and nonresident aliens may have Federal tax return
Tax return (United States)
Tax returns in the United States are reports filed with the Internal Revenue Service or with the state or local tax collection agency containing information used to calculate income tax or other taxes...
and payment responsibilities under the Internal Revenue Code
Internal Revenue Code
The Internal Revenue Code is the domestic portion of Federal statutory tax law in the United States, published in various volumes of the United States Statutes at Large, and separately as Title 26 of the United States Code...
. Individuals must have a filing requirement and file a valid federal income tax return to receive an ITIN, unless they meet an exception.
The program was created in 1996 for the purpose of tax filing of individuals without a social security account number. Receiving an ITIN number does not in itself confer the right to work and receive income in the United States.
In 2006 1.4 million people used ITIN when filing taxes. Federal tax law prohibits the IRS from sharing data with other government agencies including the Department of Homeland Security, assuring unauthorized immigrants that the tax information will be confidential and not be used to initiate removal procecedures.
ITINs are also used by real estate brokers to facilitate mortgages for unauthorized immigrants.
In addition to use by unauthorized immigrants, ITINs are used by foreign investors in United States real estate. Such investors need ITINs to file federal and state tax returns to report rental income.