Philadelphia, Pennsylvania, 2nd Feb, 2017- An Individual Taxpayer Identification Number is a nine digit tax number that is issued to all the alien immigrants from the US who are earning wages but do not possess a Social Security Number. With this number they can open bank accounts, apply for the loans and efficiently process the other financial transactions. It is generally used for federal tax reportings and do not serve the authorization to work or provide other social security benefits.

The IRS issues the ITIN regardless of the immigration status because both the resident individuals and other foreign nationals may have reporting requirements under the Internal Revenue Code. Even the alien spouse who is being claimed as a dependant of a US citizen or a nonresident visa holder is required to file the federal taxes. Therefore ITIN is compulsory for all the unauthorized individuals and the foreign students, professors or researchers filing a US return. Since ITIN runs parallel to the tax preparation business, the clients must have a valid income tax return to obtain it unless they meet an exception. Also an ITIN application cannot be filed electronically.

An individual who fulfills the eligibility requirements can seek an ITIN himself or herself. This includes filling up the W7 application form which contains all the biographical information along with the specific documents of passports, national identity cards, civil birth certificates, US or foreign voter cards, registration cards, military identification cards and a tax return. The applicants can apply directly for an Individual Taxpayer Identification Number or file with the assistance of certifying acceptance agents (CAA), who can submit the applications to the respective IRS offices for a fee. These CAAs also verify and review the authenticity of the supplementary original copies and issues a Certificate of Accuracy ensuring that the applications have been successfully completed. The ITIN program lets more people to pay into the system, thereby building a tax base. Also the ITI holders are eligible to provide a proof of residency. The new laws enacted under the PATH act has also stated that all the ITIN issued after 31st December 2012 will be renewed after every five years. Consequently an ITIN not used for three consecutive years will expire and have to be renewed.