Individual Taxpayer Identification Number
The Individual Taxpayer Identification Number (ITIN) is a nine-digit tax processing number issued by the Internal Revenue Service (IRS) to resident and nonresident aliens, their spouses, and dependents who must file U.S. federal tax returns or report income but are ineligible for a Social Security number (SSN).[1][2] ITINs begin with the numeral 9 and follow the format 9XX-XX-XXXX, serving exclusively as an identifier for tax administration purposes without authorizing employment, conferring immigration status changes, or entitling holders to Social Security benefits or credits like the earned income tax credit.[3][4] Established by the IRS on July 1, 1996, the ITIN program addressed gaps in tax compliance by providing a mechanism to track and collect federal taxes from individuals lacking SSNs, such as foreign nationals with U.S. tax obligations who could not otherwise be identified in IRS systems.[5] Prior to its creation, the IRS struggled with processing returns from non-SSN holders, leading to incomplete tax administration; the ITIN enabled better enforcement of reporting requirements under U.S. tax law for entities including nonresident aliens and certain dependents.[4][5] Eligibility requires demonstrating a federal tax purpose, such as filing a U.S. tax return, and submitting Form W-7 alongside supporting identity and foreign status documentation, with applications processed via mail, IRS offices, or certified acceptance agents.[6] ITINs expire if unused for federal tax filing over three consecutive years or upon reaching certain middle-digit thresholds (e.g., 70 through 88, effective post-2012), prompting renewal to prevent processing delays, though renewals do not retroactively validate prior filings.[7] In response to documented instances of fraud and misuse—such as applications lacking genuine tax purposes—the IRS has tightened standards since 2012, including enhanced documentation verification and restrictions on exceptions, to align issuance strictly with tax administration needs rather than broader eligibility expansions.[7][5]Overview
Definition and Purpose
The Individual Taxpayer Identification Number (ITIN) is a nine-digit tax processing number issued by the Internal Revenue Service (IRS) to individuals who are required to have a U.S. taxpayer identification number for federal tax purposes but are ineligible for a Social Security Number (SSN).[1][2] It begins with the numeral 9 and follows the format XX-XXXXXXX, distinguishing it from SSNs and other employer identification numbers.[4] The primary purpose of the ITIN is to enable tax compliance by allowing eligible individuals—such as certain nonresident aliens, their spouses, and dependents—to file U.S. federal income tax returns and report income accurately, even without an SSN.[1][3] This facilitates efficient processing and accounting of tax returns from persons who otherwise lack a suitable identifier, ensuring the IRS can track tax obligations regardless of the filer's immigration status.[8] ITINs are issued only to those with a demonstrable federal tax filing requirement, such as nonresidents earning U.S.-sourced income or dependents claimed on returns by U.S. taxpayers.[9] Unlike SSNs, ITINs serve solely as a tax administration tool and do not confer eligibility for Social Security benefits, employment authorization, or other federal programs.[2] They are not valid for employment-related tax reporting, where an SSN or other work-authorized identifier is required, underscoring their limited scope to tax reporting and refund processing.[1] This distinction prevents misuse while promoting revenue collection from taxable activities involving non-SSN holders.[10]Eligibility Criteria
The Individual Taxpayer Identification Number (ITIN) is available to individuals ineligible for a Social Security Number (SSN) who must comply with U.S. federal tax reporting requirements.[1] Eligibility requires a demonstrable federal tax purpose, such as filing a U.S. income tax return, claiming a refund or allowable tax credit, or being included on a tax return to support specific benefits.[3] Applications must accompany a completed federal tax return unless an exception applies, such as for certain nonresident aliens claiming tax treaty benefits.[1] Primary qualifiers include nonresident aliens required to file U.S. tax returns due to U.S.-sourced income, resident aliens (determined by substantial presence test) unable to obtain an SSN, and nonresident alien students, professors, or researchers filing returns or seeking treaty-based exceptions from withholding.[3] Nonresident aliens may also qualify if engaging in U.S. trade or business or disposing of U.S. real property interests.[1] Immigration status does not affect eligibility, as ITIN issuance is solely for tax administration and implies no authorization for employment, Social Security benefits, or changes in immigration standing.[3] Spouses and dependents of U.S. citizens, resident aliens, or certain nonresident alien visa holders are eligible only if claimed for an allowable tax benefit, such as the Child Tax Credit, Credit for Other Dependents, or Additional Child Tax Credit.[1] For tax years beginning after December 31, 2017, these individuals cannot obtain or renew an ITIN for zero-income returns or solely for the now-suspended personal exemption; a genuine tax benefit or joint filing with a spouse is required.[3] U.S. resident alien dependents may qualify for the Credit for Other Dependents if meeting residency tests.[10] ITINs do not qualify holders for the Earned Income Tax Credit except in limited cases tied to allowable benefits.[1]- Non-eligible scenarios include U.S. citizens, lawful permanent residents eligible for SSNs, or individuals seeking ITINs without a tax filing obligation.
- Dependents must provide evidence of relationship and identity, with eligibility further restricted if not supporting a tax benefit.[3]
History
Establishment and Early Implementation
The Individual Taxpayer Identification Number (ITIN) was established by the Internal Revenue Service (IRS) in 1996 under Treasury Regulation § 301.6109-1(d)(3), authorizing the issuance of a nine-digit taxpayer identification number to individuals required to provide such a number for federal tax reporting or withholding but ineligible for a Social Security number (SSN).[9] This regulatory measure addressed gaps in tax administration for non-SSN-eligible persons, such as nonresident aliens with U.S.-source income or treaty obligations necessitating filings under the Internal Revenue Code.[11] The regulation appeared in the Federal Register on May 29, 1996, with the IRS announcing that applications via the newly introduced Form W-7 would be accepted starting July 1, 1996.[11] Form W-7 required applicants to submit supporting documentation verifying identity and foreign status, alongside a federal tax return demonstrating a need for the ITIN, such as for claiming treaty benefits or reporting income.[12] The IRS designed the ITIN format to begin with the number 9, distinguishing it from SSNs (starting with 1-8 or 00-66 for certain blocks) and Employer Identification Numbers, to facilitate processing without implying work authorization or immigration status.[9] Early implementation aligned with the July 1, 1996, target date, as the IRS began processing and issuing ITINs that month to enable timely tax compliance for the 1996 filing season.[13] Initial uptake focused on legitimate tax filers, including foreign investors and dependents, with the program administered through IRS service centers rather than dedicated units, reflecting its origin as a procedural tool rather than a standalone initiative.[5] By facilitating returns without SSN barriers, the ITIN supported revenue collection from taxable activities involving nonresidents, though documentation verification relied primarily on self-attestation and attached returns in the program's nascent phase.[14]Policy Evolutions and Restrictions
The Individual Taxpayer Identification Number (ITIN) program originated with Treasury regulations finalized in 1996, enabling the IRS to issue nine-digit numbers beginning with 9 to individuals ineligible for Social Security numbers (SSNs) solely for federal tax reporting and withholding compliance, without initial expiration dates or stringent documentation mandates beyond basic identity and foreign status verification.[1][15] Fraud concerns prompted significant revisions in 2012, when the IRS implemented interim procedures on June 22 requiring all ITIN applicants—including renewals—to submit original supporting documents or certified copies from issuing agencies, rather than photocopies, to verify identity and foreign status, while reducing the list of acceptable documents and curtailing exceptions previously allowed for certain filers.[16] These changes, finalized for the 2013 filing season effective January 1, 2013, also introduced a five-year validity period for newly issued ITINs to ensure ongoing legitimate use, marking a shift from indefinite issuance to periodic validation aimed at curbing misuse for non-tax purposes.[17][18] The Protecting Americans from Tax Hikes (PATH) Act, enacted December 18, 2015, imposed further evolutions by mandating ITIN expiration for non-use on federal tax returns over three consecutive years, with implementation beginning January 1, 2017, alongside accelerated deactivation of ITINs bearing middle digits 78 or 79 (issued 2012–2014) on December 31, 2016, followed by staggered expirations for older series like 88–92 in subsequent years.[19][20] This policy required affected taxpayers to renew via Form W-7 with updated documentation before claiming refunds or credits, effectively narrowing ITIN utility to active tax participants.[9] Restrictions on ITIN eligibility and benefits have tightened concurrently; since tax years beginning after December 31, 2015, primary taxpayers and spouses using ITINs (rather than SSNs) are ineligible for refundable portions of the Child Tax Credit, Additional Child Tax Credit, American Opportunity Tax Credit, and Earned Income Tax Credit, though ITIN-holding dependents may still qualify claimants for allowable benefits if the primary filer has an SSN.[3] For tax years after 2017, spouses and dependents qualify for ITIN issuance only if claimed for a specific tax benefit or required for filing, excluding those solely as household members without tax implications.[3] ITINs remain strictly limited to tax administration, prohibiting use for employment authorization under Form I-9 or E-Verify systems, and do not confer eligibility for SSN-linked social benefits or work permits.[1][7]Application and Administration
Application Requirements and Process
Applicants for an Individual Taxpayer Identification Number (ITIN) must complete Form W-7, Application for IRS Individual Taxpayer Identification Number, and submit it with a completed federal income tax return, such as Form 1040 or Form 1040-NR, unless they qualify for one of the exceptions outlined in the Form W-7 instructions, such as documentation of third-party withholding on passive income or scholarships for dependents.[6][21] The application must be filed on or before the due date of the associated tax return to avoid separate processing delays.[1] Supporting documentation is mandatory to establish the applicant's identity and foreign status, consisting of original documents or certified copies from the issuing agency, which must be current and unexpired at the time of submission.[22] A single valid passport suffices to prove both identity and foreign status without additional documents.[22] In the absence of a passport, applicants must provide at least two documents: one demonstrating foreign status (e.g., foreign birth certificate, foreign voter's registration card, or Indian and Northern Affairs Canada document) and one verifying identity with a photograph (e.g., U.S. driver's license, foreign driver's license, or USCIS Employment Authorization Card).[22] For dependents, proof of U.S. residency—such as a medical record, school record, or letter from a welfare agency—is additionally required unless the dependent qualifies for an exception, like being the spouse or dependent of U.S. military personnel stationed overseas.[22] Notarized copies are generally not accepted, except in specific cases involving U.S. military dependents.[22] The application process involves preparing the Form W-7, attaching the tax return and supporting documents, and submitting the package via one of three primary methods.[21] Mailing is directed to the IRS ITIN Operation at P.O. Box 149342, Austin, TX 78714-9342 (or the equivalent private delivery service address at 3651 S. Interregional Highway 35, Austin, TX 78741-0000), where original documents are retained during processing and returned only if a self-addressed certified mailer is included.[21] In-person submission requires an appointment at an IRS Taxpayer Assistance Center (TAC), where staff authenticate documents on-site, photocopy them, and return the originals immediately, followed by mailing the package to the IRS.[21] Alternatively, Certifying Acceptance Agents (CAAs)—IRS-authorized individuals or organizations—can review and certify the authenticity of documents, enabling applicants to submit copies while retaining originals, though CAAs may charge fees for this service.[21] Processing typically requires seven weeks from receipt, but extends to nine to eleven weeks during peak season (January 15 to April 30) or for applications from outside the United States.[21] Upon approval, the ITIN is issued via letter to the applicant's address, and the tax return is processed separately; rejections occur if documentation is insufficient or if the applicant qualifies for a Social Security Number instead.[21] As of September 2025, revised standards emphasize the use of current Form W-7 and prioritize passports among 13 specified acceptable document types for verifying identity and foreign status.[7]Renewal, Expiration, and Compliance Burdens
ITINs expire if not included on a U.S. federal tax return for three consecutive tax years, with expiration occurring on December 31 of the third year of non-use.[23] This rule, implemented under the Protecting Americans from Tax Hikes (PATH) Act of 2015, applies prospectively; for instance, ITINs unused on returns for tax years 2021, 2022, and 2023 expired on December 31, 2024.[23] [24] Holders whose ITINs begin with middle digits 70, 71, 72, or 73 (typically issued before 2010) faced earlier phase-out expirations starting in 2016, but current policy emphasizes non-use as the primary trigger.[1] The IRS notifies affected holders via letters, such as CP48R or CP567, urging renewal if a return is planned.[25] Renewal requires submitting Form W-7, Application for IRS Individual Taxpayer Identification Number, alongside a federal tax return or as a standalone application, with processing times averaging seven weeks.[1] Supporting documentation, such as original passports or certified copies from issuing agencies, must verify identity and foreign status, and originals are returned post-processing.[6] No fee applies, but renewals tied to tax filing must occur before using the ITIN on a return to avoid rejection or delays; extensions to October 15 do not extend ITIN validity for filing purposes.[23] Holders not filing returns in the near term need not renew, as expiration only impacts active tax obligations.[26] Compliance burdens stem from stringent documentation mandates and manual processing, which the IRS Taxpayer Advocate Service has identified as a "most serious problem" due to high rejection rates (up to 50% in some periods) from incomplete or mismatched proofs.[14] Applicants often face repeated submissions, with original documents risking loss or delay, particularly for non-residents lacking easy access to certification services.[27] Limited digital options exacerbate issues, as e-filing remains unavailable for most W-7 applications, forcing paper-based handling amid backlogs that can exceed 90 days during peak seasons.[27] These factors discourage timely compliance, potentially leading to unfiled returns and foregone refunds, while straining IRS resources without improving fraud detection efficacy.[14]Comparison to Other Taxpayer Identification Numbers
Key Differences from Social Security Number
The Individual Taxpayer Identification Number (ITIN) and Social Security Number (SSN) serve as taxpayer identification mechanisms but differ fundamentally in eligibility requirements. An ITIN is issued exclusively to individuals who are not eligible for an SSN yet must comply with federal tax filing obligations, such as nonresident aliens earning U.S.-source income, their nonresident alien spouses or dependents, or certain resident aliens lacking work authorization.[28][3] In contrast, an SSN is available to U.S. citizens, lawful permanent residents, and non-citizens with explicit work authorization from the Social Security Administration.[28] Regarding purpose and entitlements, the ITIN is restricted to tax administration and processing; it confers no eligibility for Social Security benefits, the Earned Income Tax Credit, employment authorization, or public assistance programs, nor does it alter an individual's immigration status.[3][29][30] An SSN, however, supports broader functions including wage reporting for employment, qualification for retirement and disability benefits under the Social Security program, and access to certain federal services tied to lawful presence and contributions.[31] Issuance authorities and processes also diverge: ITINs are assigned by the Internal Revenue Service (IRS) upon submission of Form W-7 with supporting documentation verifying identity and foreign status, often requiring certification by an IRS Acceptance Agent.[28][1] SSNs are issued by the Social Security Administration, typically integrated with employment verification or benefit claims.[28] Structurally, both are nine-digit numbers formatted as XXX-XX-XXXX, but ITINs are distinguishable by beginning with the digit 9 followed by specific middle-digit ranges (such as 70-88, 90-92, or 94-99) to prevent overlap with SSNs.[32][31] Additionally, ITINs expire after periods of non-use in tax filings—specifically, those with middle digits 78, 79, or previously 88 became invalid after December 31, 2021, unless renewed—imposing ongoing compliance burdens absent from SSNs, which remain valid indefinitely barring rare revocation.[1] ITINs lack utility as general identification outside the federal tax system and cannot be used for employment eligibility verification via Form I-9, underscoring their narrow scope compared to the SSN's multifaceted role in financial, employment, and governmental interactions.[33][30]Distinctions from Employer Identification Number
The Individual Taxpayer Identification Number (ITIN) and Employer Identification Number (EIN) are both nine-digit taxpayer identification numbers issued by the Internal Revenue Service (IRS) for federal tax reporting purposes, but they differ fundamentally in the entities they identify and their applications.[2][34] The ITIN is assigned exclusively to individuals, such as certain nonresident aliens, resident aliens, their spouses, and dependents, who have a U.S. tax filing obligation but are ineligible for a Social Security Number (SSN). In contrast, the EIN identifies business entities, including corporations, partnerships, sole proprietorships, estates, trusts, and tax-exempt organizations, that must file various business-related tax returns or employ workers.[35][36] Key distinctions include issuance criteria, usage scope, and structural formatting. ITINs are issued only to individuals without an SSN who demonstrate a need to file U.S. individual income tax returns, such as Form 1040, and do not confer eligibility for Social Security benefits, work authorization, or other federal programs.[3][34] EINs, however, are required for entities engaging in activities like hiring employees, filing excise or employment tax returns, or operating as a partnership, and they enable payroll tax withholding and business entity reporting without individual-level restrictions.[35][36] All ITINs begin with the digit 9 followed by a range such as 70-88, 90-92, or 94-99 to denote issuance batches, whereas EINs use two-digit prefixes from 01 to 99 (excluding certain ranges like 00 or 88 for specific uses) that reflect the type of entity or application method.[2][35]| Aspect | ITIN | EIN |
|---|---|---|
| Primary Identifyee | Individuals (e.g., nonresident aliens without SSN) | Business entities (e.g., employers, corporations, trusts) |
| Eligibility Basis | Tax filing requirement without SSN eligibility | Business formation, employment, or entity-specific tax obligations |
| Common Forms Used | Individual returns (e.g., Form 1040, W-7 application) | Business returns (e.g., Form 1120, 941; SS-4 application) |
| Benefits Conferred | None (tax processing only; no work authorization or SSN benefits) | Enables business operations like payroll and entity taxation |
| Expiration/Renewal | Expires if unused for three years or upon SSN eligibility | Generally permanent unless entity dissolves or changes structure |
Usage and Empirical Data
Demographics of ITIN Holders
ITIN holders encompass a diverse group ineligible for Social Security numbers, including nonresident aliens with U.S. tax filing requirements, resident aliens without work authorization, their spouses, and dependents, often in mixed-status households. As of January 2021, approximately 5.4 million ITINs were active, enabling compliance with federal tax obligations without conferring work authorization or eligibility for most benefits.[37] Resident aliens, along with their spouses and dependents, comprise over 80 percent of ITIN applicants, reflecting heavy use for family members of U.S. citizens or lawful permanent residents.[32] Among those using ITINs on tax returns, roughly 42 percent appear as primary taxpayers, 18 percent as secondary filers (typically spouses), and 40 percent as dependents, underscoring the role of ITINs in claiming exemptions or credits for non-eligible family members.[14] In tax year 2022, 3.79 million returns included at least one ITIN, with filing statuses distributed as 41 percent married filing jointly, 35 percent single, 19 percent head of household, and 5 percent married filing separately.[32] These patterns indicate a predominance of family-oriented filings, particularly among low-wage earners supporting dependents. ITIN filers exhibit low-income characteristics, with a median adjusted gross income of $31,033 in tax year 2022, and only about 10 percent reporting Schedule C business profits suggestive of self-employment.[32] Primary ITIN filers often include undocumented workers in labor-intensive sectors, though the population also features non-working foreign students, investors, and retirees with U.S.-sourced income. Limited public data disaggregation hinders precise profiling, but historical IRS application records show a concentration among Latin American nationals; in processing year 2012, Mexico accounted for 71.9 percent of applications, comprising the bulk of the top origins alongside smaller shares from countries like Guatemala and India.[14][38] Recent breakdowns by country of citizenship remain unavailable, as the IRS prioritizes privacy over detailed demographic releases for this group.[38]Tax Filing and Revenue Statistics
In tax year (TY) 2022, taxpayers filed 3,791,421 individual income tax returns that included at least one Individual Taxpayer Identification Number (ITIN), accounting for roughly 2.7% of the total individual returns processed by the Internal Revenue Service (IRS).[32] This figure reflects a modest decline from the peak of 4,381,382 returns in TY 2020, amid broader trends influenced by policy changes such as the Protecting Americans from Tax Hikes (PATH) Act of 2015, which imposed expiration and renewal requirements on certain ITINs.[32] Partial data for TY 2023 indicate approximately 3.3 million such returns through September 2024.[32]| Tax Year | Returns Filed with at Least One ITIN |
|---|---|
| 2015 | 3,766,806 |
| 2016 | 3,682,228 |
| 2017 | 3,820,499 |
| 2018 | 4,099,686 |
| 2019 | 4,247,447 |
| 2020 | 4,381,382 |
| 2021 | 3,821,414 |
| 2022 | 3,791,421 |