Getting an ITIN (Individual Taxpayer Identification Number)

You need an ITIN if you have a U.S. tax filing requirement and don't qualify for a Social Security Number:

Common Situations:
• Non-resident aliens who need to file a U.S. tax return
• Resident aliens (by tax definition) who can't get an SSN
• Dependents claimed on someone else's tax return
• Spouses filing jointly with U.S. citizens/residents
• Business owners who need an EIN (some cases)
• Recipients of taxable income (rental, investments, etc.)

You DON'T Need an ITIN If:
• You already have a valid SSN
• You're eligible to apply for an SSN
• You have no U.S. tax filing requirement

Important Notes:
• ITINs are only for tax purposes
• You must have a valid tax filing reason to apply
• Applications without a tax return are generally rejected
• Family members (spouse, dependents) can also get ITINs

Business Owners:
Many entrepreneurs use ITINs to:
• File business taxes
• Apply for an EIN
• Open business bank accounts
• Establish business credit

We help many clients obtain ITINs and use them to start successful businesses in Alabama.

There are three ways to apply for an ITIN:

Option 1: Mail Application (Most Common)

1. Complete Form W-7 (ITIN Application)
2. Attach your federal tax return
3. Include original documents OR certified copies
4. Mail to: IRS ITIN Operation, P.O. Box 149342, Austin, TX 78714-9342

Option 2: Certified Acceptance Agent (CAA) - RECOMMENDED
• Work with an IRS-authorized agent like New Century Business
• We verify your documents - no need to mail originals
• Faster processing and fewer rejections
• We complete Form W-7 for you
• Mail your tax return with certified documents

Option 3: In-Person at IRS Taxpayer Assistance Center
• Schedule appointment at local IRS office
• Bring original documents for verification
• Submit application on the spot
• Limited availability - must schedule ahead

Application Timeline:
• Processing: 7-11 weeks (longer during tax season)
• Expedited: Available in certain situations
• Renewal: Same process if ITIN has expired

Our CAA Services Include:
• Document review and verification
• Form W-7 completion
• Tax return preparation
• Application submission
• IRS correspondence handling

We're an IRS Certified Acceptance Agent and have helped hundreds of clients successfully obtain ITINs.

The IRS requires proof of identity and foreign status. You must provide ONE primary document OR two secondary documents:

Primary Documents (Stand Alone):
• Passport (most commonly used)
• National ID card with photo, name, birthdate, address

Secondary Documents (Need 2):
• U.S. driver's license
• Foreign driver's license
• U.S. state ID card
• Foreign voter registration card
• U.S. military ID card
• Foreign military ID card
• Civil birth certificate (under age 18)
• Medical records (under age 6)
• School records (under 14, or 18 if student)

Document Requirements:
• Must be current (not expired)
• Original documents OR certified copies from issuing agency
• Photocopies/notarized copies NOT accepted
• Foreign documents don't need translation

For Dependents:
• Birth certificate (certified copy acceptable)
• Passport
• School records
• Medical records

Using a Certified Acceptance Agent (CAA):
When you work with us as your CAA:
• We verify original documents
• You don't mail originals to IRS
• We certify copies for IRS submission
• Lower risk of lost documents

Tips:
• Passports are the easiest - one document does it all
• Start gathering documents early
• Never mail original documents without a CAA

ITIN processing times vary based on several factors:

Standard Processing:
• 7-11 weeks from IRS receipt
• Longer during January-April (tax season)
• COVID delays may still affect timing

Factors That Affect Timing:
• Time of year (faster May-December)
• Completeness of application
• Document verification needs
• IRS workload
• Mail delays

Expedited Processing (Special Cases):
May be available for:
• Tax deadline approaching
• IRS penalty situation
• Received IRS notice
• Certain financial emergencies

Status Check:
• Wait at least 7 weeks before checking
• Call IRS: 1-800-829-1040
• Have Form W-7 copy ready
• You cannot check status online

What You Receive:
• CP565 Notice - ITIN assignment letter
• Keep this document safe
• Contains your 9-digit ITIN
• Use this for future tax filings

If Application is Rejected:
• You'll receive a letter explaining why
• Common reasons: incomplete documents, missing signature
• You can reapply after correcting issues
• We help clients with rejected applications

Pro Tip: Apply early! Don't wait until tax deadline. Allow at least 3 months before you need to file.

Yes! An ITIN can be used to start and operate a business in the United States. Here's what you need to know:

What You CAN Do With an ITIN:
• Apply for an EIN (Employer Identification Number)
• Form an LLC or Corporation
• Open a business bank account (at some banks)
• File business tax returns
• Build business credit
• Get certain business licenses

Steps to Start a Business with ITIN:

1. Get Your ITIN First - Complete W-7 application
2. Apply for EIN - Use your ITIN on Form SS-4
3. Form Your Business - Register LLC/Corp with state
4. Open Bank Account - Bring EIN and formation documents
5. Get Business Licenses - Apply for required permits
6. Set Up Accounting - Track income and expenses

Important Considerations:
• ITIN doesn't provide work authorization
• You may need to be careful about personal involvement
• Consult with immigration attorney if concerned
• Business structure matters for liability

Bank Accounts:
• Some banks accept ITIN holders
• Credit unions often more flexible
• Bring all business documentation
• We can recommend ITIN-friendly banks

Building Credit:
• Business credit is separate from personal
• ITIN allows you to build both
• Opens doors to business financing later

Many of our clients have successfully started businesses using their ITIN. We provide complete support from ITIN application through business formation.

ITIN and SSN are both 9-digit tax identification numbers, but they serve different purposes and have different eligibility requirements:

Social Security Number (SSN):
• Issued by Social Security Administration
• For U.S. citizens, permanent residents, and authorized workers
• Provides eligibility for Social Security benefits
• Can be used for employment (I-9 verification)
• Required for most government benefits
• Lifetime number (doesn't expire)

ITIN (Individual Taxpayer Identification Number):
• Issued by Internal Revenue Service
• For people who can't get an SSN
• Only for federal tax purposes
• Does NOT authorize work
• Does NOT provide Social Security benefits
• Must be renewed (expires if unused for 3 years)

Key Differences:

| Feature | SSN | ITIN |
|---------|-----|------|
| Issued by | SSA | IRS |
| Work authorization | Yes | No |
| SS benefits | Yes | No |
| Tax filing | Yes | Yes |
| Expires | No | Yes |
| Employment (I-9) | Yes | No |

Important Notes:
• Never use ITIN on Form I-9 (employment)
• If you get SSN later, stop using ITIN
• Notify IRS when you get SSN to link records
• You can only have one or the other active

When ITIN Converts to SSN:
If your status changes and you qualify for SSN:

1. Apply for SSN through Social Security
2. Continue using ITIN until SSN arrives
3. Send letter to IRS to link ITIN history to SSN
4. Stop using ITIN on new documents

We help clients understand which number they need and assist with both ITIN applications and the transition to SSN when applicable.