How to Apply for an ITIN as a Non-Resident

An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service (IRS) for individuals who are not eligible to obtain a Social Security Number (SSN). It's primarily used by non-residents and foreign nationals who need to meet US tax obligations. An ITIN can be beneficial for various reasons, such as opening a US bank account, filing taxes, or conducting business in the US from abroad. For those who are not US citizens or residents, obtaining an ITIN can be a critical step in accessing US financial and tax systems.

What is an ITIN?

An ITIN is a nine-digit tax identification number, issued by the IRS to people who are not eligible for an SSN, such as non-residents, dependents, and foreign nationals. Its primary purpose is to help these individuals comply with US tax laws, allowing them to file federal tax returns, claim tax credits, and report income. Additionally, an ITIN may be required to open US financial accounts, access certain payment systems, and fulfill compliance needs for those who conduct business or own property in the US. It's important to note that an ITIN does not grant work authorization or provide any social benefits—it’s solely for tax and financial identification.

Why You Might Need an ITIN

An ITIN is an essential tax identification number for non-residents who wish to engage with the US financial system. It serves multiple purposes, from facilitating tax compliance to helping open bank accounts. Below are some of the key reasons why obtaining an ITIN can be beneficial for those living abroad or without a Social Security Number.

• Opening US bank accounts
  An ITIN is often required for non-residents to open US bank accounts—both personal and business. Since non-residents don’t typically qualify for an SSN, the ITIN serves as a verification tool for banks, making it easier to establish financial presence and manage international transactions.
• Tax compliance
  For those earning income from US sources, owning US property, or having a business partnership in the country, an ITIN is crucial. It allows non-residents to file US federal tax returns, report earnings, and meet tax obligations properly and legally.
• Other uses
  An ITIN can also assist in setting up payment systems (e.g., PayPal, Stripe), applying for a mortgage or loan, or conducting any financial activity in the US that requires a taxpayer ID. Essentially, the ITIN is a versatile tool for navigating a variety of financial and legal processes in the US.

Whether it's for opening bank accounts, making investments, or managing business transactions, having an ITIN simplifies the process for anyone needing to engage with the US system from abroad.

How to get an ITIN from abroad

Getting an ITIN (Individual Taxpayer Identification Number) remotely is possible and can be done without a US visit. To apply, you’ll need to prepare specific documents, which we’ll cover below. The process primarily involves submitting an application, the required documents, and possibly your US federal tax return.

Required documents for your ITIN application

To apply for an ITIN, gather the following:

1. Form W-7: the official IRS application form for an ITIN.
2. US federal tax return: most applicants need to submit this with their Form W-7 unless they qualify for an exemption.
3. Identity and foreign status proof: this can be a passport or a combination of other approved documents.

We’ll explore the details of each document type below.

US federal tax return and exemptions

Generally, an ITIN application is filed alongside a US federal tax return. However, there are specific exemptions where the tax return is not required. These exemptions often relate to financial activities like passive income, third-party reporting for mortgage interest, or foreign partnership reporting.

To find out if you qualify for an exemption, review the instructions on Form W-7 or consult with a US tax attorney. Some common exemptions include:

• Passive income subject to withholding or covered by tax treaties (e.g., partnership, interest, rental income).
• Income such as wages, scholarships, or grants.
• Third-party mortgage interest reporting.
• Foreign person involved in a US foreclosure.
• Representative of a foreign corporation with reporting requirements.

Documents for proving identity and foreign status

The IRS requires documents to verify your identity and foreign status. Form W-7 lists 13 acceptable documents, but a passport is the most comprehensive and can be submitted independently. Other combinations (if not using a passport) require at least two documents, one containing a photo.

Some examples of documents include:

• Passport (submitted alone).
• National ID card (with photo, name, address, birth date, and expiration).
• US Driver’s License or International Driver’s License.
• Birth Certificate (for dependents under 18).
• US or Foreign Military ID Card.
• US Visa or USCIS Photo ID.
• Medical or School Records (for young dependents).

If any documents lack an expiration date, they must have been issued within 12 months prior to the application.

Certifying documents with an apostille

When applying from abroad, never send original documents. Instead, use an apostille to certify copies. An apostille is a form of document authentication recognized in all signatory countries of the Hague Convention. It allows certified copies to be legally accepted by US authorities, eliminating the need for original documents.

Filling out and submitting Form W-7

Form W-7 is the core of your ITIN application, and it must be filled out accurately. Pay particular attention to the “Reason you’re submitting Form W-7” section, as this largely determines whether your application will be approved. Remember, the US format for dates is MM/DD/YYYY.

You can find Form W-7 and its instructions on the IRS website. If submitting by mail, send it to the following addresses:

• For regular mail:
  Internal Revenue Service
  ITIN Operation
  P.O. Box 149342
  Austin, TX 78714-9342
• For courier delivery:
  Internal Revenue Service
  ITIN Operation
  Mail Stop 6090-AUSC
  3651 S. Interregional, Hwy 35
  Austin, TX 78741-0000

Processing time and IRS responses

The time taken to process your ITIN application depends on when you submit it:

• January 15 – April 30: processing takes up to 12 weeks.
• May 1 – December 31: processing takes up to 8 weeks.

You can check the status of your application 7 weeks after your expected delivery date by calling 1-267-941-1000.

If approved, you’ll receive a CP-565A Notice with your ITIN. If the IRS requires additional documents, a CP-566 Notice will be sent. If your application is rejected, you’ll receive a CP-567 Notice, detailing the reason for rejection.

Final thoughts

Remember, an ITIN is essential for non-residents to access US financial systems, file taxes, or conduct business smoothly, so investing the effort to obtain one can open many doors. If you need guidance on acquiring an ITIN, or help with setting up a US company and financial accounts, SellerSail offers professional services to assist you in navigating the process efficiently. Get in touch with us to get started on securing your ITIN and streamlining your business needs.