INDIVIDUAL IDENTIFICATION NUMBER (ITIN)

1. INDIVIDUAL IDENTIFICATION NUMBER (ITIN) January, 2011

2. What is an ITIN? A tax processing number, issued by the IRS, that identifies, for tax purposes, certain resident and non-resident aliens, their spouses, and/or their dependents.

3. Why an ITIN? To fulfill filing requirements and/or payment responsibilities under the Internal Revenue Code: Some people (residents or non resident aliens) do not have and are not eligible for Social Security Numbers yet they are still required to file a tax return.

4. An ITIN does NOT... • Entitle the recipient to Social Security benefits or Earned Income Tax Credit (EITC) • Change an individual’s immigration status • Give the individual the right to work in the U.S. and is not valid for employment purposes • Serve as identification outside the tax system

5. How to obtain an ITIN? By completing Form W-7 and attaching proof of identity and foreign status documents together with a valid U.S. Federal Income Tax Return (unless you qualify for an exception).

6. Form W-7

7. Supporting Documentation • Passport only stand-alone document that will probe both, identity and foreign status • List of acceptable documents can be found in Instructions to Form W-7 or Publication 915

8. Common Applicant Errors • No return attached and no indication an exception is met • Form W-7 or W-7SP not signed • The delegate’s relationship to applicant BOX is not checked • Foreign address (or country) not provided on Form W-7 or W-7SP (line 3), when required • Proper documentation is not attached • Supporting documentation to meet exception not attached to Form W-7 • Original, notarized or certified identification documents not provided • Identification documents had expired (where applicable) • Applications not mailed to the ITIN PO Box or sent to the wrong Center

9. Where can a taxpayer request help in completing Form W-7? • Publication 1915 Understanding Your IRS Individual Taxpayer Identification Number (ITIN), contains step-by-step instructions • Call IRS at 1-800-829-1040 • Visit an IRS Taxpayer Assistance Center • Visit a VITA site that has been trained in completing Form W-7 • Visit a tax professional • Visit an IRS-authorized acceptance agent

10. Where to Submit an ITIN Application • By Mail: Internal Revenue Service ITIN Operation P.O. Box 149342 Austin, TX 78714-9342 • In Person: IRS Taxpayer Assistance Center • Through an Acceptance Agent: • To obtain a list of agents, visit the IRS website at www.IRS.gov, keyword search: Acceptance Agent

11. Certifying Acceptance Agents (CAA) A CAA is a person who is authorized to assist alien individuals and other foreign persons in obtaining ITINs from the IRS.

12. Role of CAA • Conducts interviews with client • Determines client’s eligibility for a Social Security Number • Reviews/Certifies supporting and supplemental documentation • Certifies the documentary evidence of the client foreign status and identity • Prepares the W-7 application • Maintain copies of the signed W-7, certificate of accuracy, documentary evidence of foreign status and identity, the federal tax return and supporting documentation of exception if applicable for three years • Provide additional information on applicant’s behalf • Contact the IRS on behalf of applicant as it relates to the ITIN application

13. Summary • Form W-7/W-7 (SP) is used to apply for an IRS Individual Taxpayer Identification Number. • The ITIN is intended for federal tax purposes only and does not change the individuals immigration status or authorize them to work in the U.S.

14. Summary • Any resident or nonresident alien, who is required to file a U.S. federal tax return, or can be claimed as a dependent on a tax return, and who does not qualify for a SSN, must apply for an ITIN. • Only residents of the U.S., Canada, India, Mexico or South Korea may claim an exemption for their spouses and their dependents, if special rules are met.

15. Summary • The ITIN does not entitle the applicant to claim EITC nor entitle them to Social Security benefits. • An individual with an ITIN does not qualify for EITC. • Children with an ITIN do not qualify for EITC, however, they may qualify for the Child Tax Credit and Additional Child Tax Credit.

16. Reference • Go to www.IRS.gov keyword search “ITIN” • Instructions for Form W-7 • Publication 1915 & 1915 (SP) - Understanding Your IRS Individual Taxpayer Identification Number • Publication 4327 (ENG/SP) – ITIN - Facilitating Participation in the Tax System