Individual Taxpayer ID Number (ITIN)

In order to file your taxes, the government needs a way to identify and keep track of the income you earn. This is done through a tax identification number. This is the same number used by credit bureaus to determine your credit score (see the Finance & Capital topic area). 

For those eligible, this number is your Social Security Number (SSN). If you do not have or are not eligible for a SSN, you may instead file for an Individual Taxpayer Identification Number (ITIN), regardless of immigration status. ITINs are issued by the US Internal Revenue Service (IRS). The IRS is the nation’s tax collection agency and is responsible for administering the federal tax code. 

ITINs allow individuals ineligible for a SSN to:

1. Report their earnings to the IRS
2. Open interest-bearing bank accounts with certain banks
3. Open checking accounts with certain banks and build credit
4. Conduct business in the U.S. 
5. Access personal and business loans

The IRS issues ITINs regardless of immigration status, because both citizens and noncitizens may have a U.S. tax filing or reporting requirement under the Internal Revenue Code. That means that regardless of immigration status, if you earn more than $400 in the U.S., or meet any other filing requirement, you are required to pay taxes on your income. 

It can be complicated to apply for an ITIN by yourself if you are unfamiliar with the process. We suggest working with a professional or an IRS acceptance agent if you can. For more detailed information and a step-by-step guide through the application process, watch the Immigrants Rising webinar ITIN 101: EVERYTHING YOU WANT TO KNOW ABOUT ITINS, BUT DON’T KNOW WHAT TO ASK.

You can complete your ITIN application through the Internal Revenue Service by filling out form W-7: Application for IRS Individual Taxpayer Identification Number.

• Not a valid form of identification
  ITINs are not valid identification outside the federal tax system. ITINs are strictly for tax processing, so the IRS does not apply the same standards as agencies that provide genuine identity certification (e.g. state IDs/ driver’s license, passports, green cards, etc.). However, some states may accept the ITIN as part of the driver’s license application or verification of residency. 

• Does not change immigration status
  ITINs are for federal income tax purposes only. Getting an ITIN does not change your immigration status or your authorization to work in the United States.

• Ineligibility for some benefits
  An ITIN does not provide eligibility for Social Security benefits or the Earned Income Tax Credit. 

Cannot be used for employment
ITINs cannot be used in place of a Social Security number for employment purposes.

Several important changes have been made to the ITIN application and process since it began: 

• In 2003, the IRS began to tighten standards for issuing ITINs by requiring tax returns as proof that the ITIN would be used for tax administration purposes. The IRS also announced that it would change the appearance of the ITIN from a card to a letter to avoid possible similarities with the SSN card.
  

In 2012, the IRS announced revised procedures for 2013 and beyond, requiring original documents or copies certified by the issuing agency for most applications. Moreover, on November 29, 2012, the IRS announced for the first time that ITINs would expire after five years. They also announced that Certifying Acceptance Agents (CAAs) would be allowed to engage in the ITIN application process by reviewing original documents or copies certified by the issuing agency.

Once renewed, an ITIN will remain in effect unless it is not used on a tax return for three consecutive years. It is important to note that the issuance date of a renewed ITIN is the date the ITIN was originally issued, not the renewal date. 

What may happen if an ITIN is not renewed?

It can be easy to forget to renew your ITIN if you haven’t filed a tax return in a while. The IRS will still accept a tax return if the ITIN is expired but may delay processing and the application of certain tax credits. This could result in a reduced refund or additional penalties and interest. 

Confidentiality of ITIN Information, IRS Code § 6103

Under current law, information on the ITIN is protected from being shared with other federal agencies, including immigration agencies. ITIN information is partially protected by Internal Revenue Code § 6103, which generally prohibits the IRS from disclosing taxpayer information. To change the confidentiality of tax related information, including ITIN information, Congress would have to change the law.

Exceptions

However, there are important exceptions that you should be aware of. 

In general, the IRS is required to disclose taxpayer information to:

• State agencies responsible for tax administration
• Law enforcement agencies for investigation and prosecution of nontax criminal laws 
• Powers of attorney and other designees

The IRS may also provide limited disclosure of information in the course of official tax administration investigations to third parties if necessary to obtain information that is not otherwise reasonably available. 

Risks

Historically, the IRS has been very invested in maintaining the confidentiality of its information, since the IRS does not want to see the reduction in tax revenue that would result if the confidentiality protections were weakened. In other words, the IRS is more interested in receiving your money than tracking your immigration status.

Benefits of having an ITIN: 

1. Will help you pay taxes, which can be beneficial in the future 
2. Will help you legitimize your business 
3. Certain states allow ITIN holders to apply to get a driver’s license and state ID 
4. Can open a bank account 
5. Build credit 
6. Can help you obtain loans

An individual with an expired ITIN who has obtained or become eligible for an SSN (for example, through DACA) should not renew the ITIN and should discontinue using it. It is improper to use both the ITIN and the SSN assigned to the same person to file tax returns. 

It is your responsibility to notify the IRS about your new SSN so it can combine all of your tax records under one identification number. The IRS will then void the ITIN and associate all prior tax information filed under the ITIN with the SSN. If you do not notify the IRS when you are assigned a SSN, you may not receive credit for all wages paid and taxes withheld, which could reduce the amount of any refund due.

If you become eligible to obtain a SSN, (i.e. DACA or permanent residents) you should obtain one from the Social Security Administration (SSA) and visit a local IRS office, or write a letter explaining that you have now been assigned a SSN and want your tax records combined. 

In your letter you should include:

• Your complete name
• Mailing address
• ITIN along with a copy of your social security card and a copy of the CP 565, Notice of ITIN Assignment, if available. 

Send your letter to: 

Internal Revenue Service 

Austin, TX 

73301-0057

Sample Letters

You may view a sample letter for transferring your credit history here, and a sample letter for notifying the IRS of a newly assigned SSN here.