ITINs have faced scrutiny and misconceptions due to their association with individuals who may not have legal immigration status. While the primary purpose of ITINs is tax compliance, concerns about potential misuse have led to increased IRS regulations and enforcement efforts.
Common misconceptions about ITINs include:
- ITINs are a pathway to citizenship or legal residency: This is false. ITINs have no bearing on immigration status.
- ITIN holders are primarily undocumented immigrants: While this is a common perception, ITIN holders come from diverse backgrounds, including nonresident aliens, foreign students, and dependents of U.S. citizens.
To address these concerns, the IRS has implemented measures to verify the identities of ITIN applicants and prevent fraudulent use of ITINs. These efforts aim to protect the tax system’s integrity while ensuring legitimate taxpayers can access the benefits of ITINs.