Applying for an ITIN? I need some help.
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Last edited by h3wlett; 11-23-2019 at 02:27 PM..
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There's alot of major information that h3lett has given in his post. I just had a lengthy discussion with my boss at the Accounting firm I work at. We handle a lot of tax returns and he knows quite a bit about this process.
First of all, you do not need a letter of denial from SSA, so don't worry about appying for SSN first That was a very good observation from h3lett. Unfortunately, the people who write these instructions add too many unnecessary details in it.
Secondly, the process of applying for a new ITIN involves filing an actual tax return with your social security number as all zeroes (blank basically). If you don't have a W2, you can simply show some income under Schedule C - Self-Employed Income.
With your tax return, you will be submitting FORM W-7 to apply for ITIN I believe these two documents will end up going to different locations but you don't have to worry about that. You have to attach a notarized copy of your passport as h3lett mentioned as your form of identity.
That's pretty much it. Once you send that tax return, consider it filed. You can then make arrangements with the IRS on how to actually pay your liability. Although, you will be subject to some penalties if you do it now since the tax deadline has gone. After 6-8 weeks, you will receive a letter from the IRS assigning you your new ITIN (Individual Tax Identification Number).
About those exceptions, they don't apply to people in our case. Don't worry about them. They have to do with certain individuals who are eligible for SSN. I myself am confused about them so I haven't bothered to look into them. But I do know that we don't have to worry about those.
Just go to any local Accounting office. The one I work at has mostly hispanic clients so the individuals filing these taxes are very experienced with things like this. So try to find a place like that that can do this for you at a reasonable price, not like HR Block. Bottom line is get it done as soon as possible. It is the right thing to pay taxes and these documents will help you immensely when you do apply for relief under Dream Act/CIR. Also not to mention you can apply for bank account, credit card accounts etc. I was one of the lucky ones who got their ITIN through their parents but you can do the same by applying yourself.
First of all, you do not need a letter of denial from SSA, so don't worry about appying for SSN first That was a very good observation from h3lett. Unfortunately, the people who write these instructions add too many unnecessary details in it.
Secondly, the process of applying for a new ITIN involves filing an actual tax return with your social security number as all zeroes (blank basically). If you don't have a W2, you can simply show some income under Schedule C - Self-Employed Income.
With your tax return, you will be submitting FORM W-7 to apply for ITIN I believe these two documents will end up going to different locations but you don't have to worry about that. You have to attach a notarized copy of your passport as h3lett mentioned as your form of identity.
That's pretty much it. Once you send that tax return, consider it filed. You can then make arrangements with the IRS on how to actually pay your liability. Although, you will be subject to some penalties if you do it now since the tax deadline has gone. After 6-8 weeks, you will receive a letter from the IRS assigning you your new ITIN (Individual Tax Identification Number).
About those exceptions, they don't apply to people in our case. Don't worry about them. They have to do with certain individuals who are eligible for SSN. I myself am confused about them so I haven't bothered to look into them. But I do know that we don't have to worry about those.
Just go to any local Accounting office. The one I work at has mostly hispanic clients so the individuals filing these taxes are very experienced with things like this. So try to find a place like that that can do this for you at a reasonable price, not like HR Block. Bottom line is get it done as soon as possible. It is the right thing to pay taxes and these documents will help you immensely when you do apply for relief under Dream Act/CIR. Also not to mention you can apply for bank account, credit card accounts etc. I was one of the lucky ones who got their ITIN through their parents but you can do the same by applying yourself.
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Originally Posted by h3wlett
So, I've pondered the same thing as I would really like to have an ITIN.
Please go to the following website: http://www.irs.gov/individuals/artic...=96287,00.html Then download Publication 1915 from the "Forms and Publications" section near the bottom. From my own research, I found that the best reason to put on the Form W-7 application is to check box "h" and write "Exception 1(b) - Interest Bearing Bank Deposit Account". This exception is for "Individuals who have opened an interest bearing bank deposit account that generates income which is effectively connected with their U.S. trade or business and is subject to IRS information reporting and/or Federal tax withholding," according to page 22 of Publication 1915. You must also present supporting documents for claiming Exception 1: "To support Exception 1(b), submit a signed letter from the Bank on their official letterhead, displaying your name and stating that you have opened a business account which is subject to IRS information reporting and/or federal tax withholding on the interest generated during the current tax year." Of course, upon reading the necessary supporting documents requirement, you will see that you must have opened a business account with a bank and then obtain a letter from the bank proving this. It is quite difficult for persons in our situation to open a bank account with merely a passport and no social security number, let alone a business account. We constantly faced flawed circular reasoning. For instance, in most states, starting a business and registering taxes requires a SS# or ITIN. Hence, we can't open a business account with a bank if we don't have a registered business which would have required an ITIN (at minimum) to begin with, and ultimately can't obtain a supporting document from the bank to file for an ITIN. LOL. There are other exceptions that may be suitable for you. There are 5 in total, which are as follows:
You may be wondering how so many illegal youth have ITINS. Most likely, they obtained it via there parents when they were under 18. When their parents filed taxes and tried to claim a dependent child, they were in the past (and maybe still today) able to receive an ITIN for their children. Arguably most amusing of the whole process is that one must first apply for a Social Security Number and obtain a letter of denial from the Social Security Administration before filing for an ITIN and attach it to the Form W-7 when it is submitted to the IRS in addition to any other supporting documents. If you do claim an exemption you will need to obtain supporting documents as well as provide notarized/certified copies of your foreign status documents (Birth Certificate or Passport). Ultimately, I have not heard of any illegal immigrant in our position who has successfully obtained an ITIN on his/her own. Those lucky few who have one most likely obtained it when their parent's claimed them as dependents and only had to provide proof of a birth certificate for their children. That's all I know! |
Last edited by 2Face; 04-25-2012 at 01:01 PM..
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Last edited by h3wlett; 11-23-2019 at 02:28 PM..
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Originally Posted by h3wlett
Thanks for the input. So basically you are suggesting that we use schedule c instead of a tax return(for those who don't have one).
Also, would you recommend choosing the option for "U.S. Resident Alien (Based on days present in the United States test) filing a U.S. tax return?" Basically, the IRS considers aliens a U.S. Resident for tax purposes if they have been in the U.S. for 31 days during the current year and 183 days for the 3-year 3-year period that includes the current year and the 2 years immediately before that. Anyway, I'm guessing we would have to wait till sometime around next year's tax deadline to submit a w-7 form. Also, if you attach a notarized copy of your passport, you don't need to provide any additional documents. Anyway, thanks for the information. |
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