Are you a US alien and have tax liabilities to comply? You need to apply for ITIN in such a scenario. Confused about what exactly ITIN is and how to obtain one for you? This post is an attempt at explaining the concepts involved in the simple language so that you do not face any hurdles in complying with your tax obligations with ease. We assume the complete taxation details as explained here should help you in that direction.
How To Get ITIN in easy Steps?
Well, if you have a business in the US, needless to say you have tax obligations. Whether you or your dependents need to pay comply with your tax liabilities, a Social Security Number or ITIN is one of the most needed documents. In fact, these documents are needed to establish your identity as a taxpayer.
In case, you do not have a SSN or not eligible for one, you will need to file for the ITIN. How would you do it? Read on to know more.
What Is ITIN?
ITIN stands for Individual Taxpayer Identification Number. Getting an ITIN is not as easy as it would appear. However, there are a few non-government assistance agents who can help you prepare the proper documentation so that your taxations liability can be completed without any hiccups.
You can apply for the ITIN through W7 form along with the necessary documents. The documents concerned can include those that provide an exact identity for you and also state the immigration status. In essence, if you are permitted to work in the US, you may apply for the Social Security Number through the Social Security Association. However, if you are not eligible for one, you need to file your tax returns along with the ITIN W7 form so that you can get a ITIN number and thus file your taxes.
IRS or Internal Revenue Services has laid down new regulations for ITIN renewal. It is not easy to keep an ITIN without actually using it, quite unlike in the past.
If an ITIN has not been used for tax returns for three years in a row, it will not be usable until you renew it. Do ensure that you renew your ITIN before your returns filing approaches. If there are no prospects of paying taxes the next year, you may not need to renew your ITIN.
Please note that you need not renew your ITIN if you are not liable to pay taxes. The renewal requirements would need you to file a completed W7 form, an application for ITIN and comply by all the other documents. Ensure that you are using the newer version of W7 form when applying. In fact, taking help from the assistance agents and other similar organisations you are complying with all the requirements and your application.
Before We Conclude..
Please note that ITIN is a documentation that can be used for taxation purposes alone. If you do not have taxation obligations, you need not apply for ITIN.
Do ensure that you have an ITIN and it is valid at the time of filing tax returns. Take help from the assistance agents if needed, in fact, that would simplify the procedure.