What is an ITIN Number and How to Get One?

What is an ITIN?

An ITIN (Individual Taxpayer Identification Number) is a nine-digit tax processing number issued by the IRS to individuals who are not eligible for a Social Security Number (SSN) but have US federal tax filing obligations.

ITINs begin with the digit 9 and follow the same format as an SSN (XXX-XX-XXXX). They are issued regardless of immigration status and are used exclusively for tax purposes.

Who Needs an ITIN?

You may need an ITIN if you:

• Are a non-resident with US-sourced income (rental income, dividends, US client payments for services performed in the US)
• Need to file a US tax return (Form 1040-NR) as a foreign LLC owner with US-effectively-connected income
• Are a dependent or spouse of a US taxpayer or visa holder who must be included on a tax return
• Want to open certain US bank accounts that require an individual tax ID

Important: Most foreign-owned LLC operators do not need an ITIN for basic operations. An EIN (for the company) is sufficient for Stripe, PayPal, and most banking. ITIN is only required if you personally have US tax filing obligations.

ITIN vs EIN vs SSN

• SSN: For US citizens and authorized residents. Used for personal income tax and employment.
• EIN: For business entities (LLCs, corporations). Required for banking and business tax filings.
• ITIN: For individual non-residents with personal US tax obligations. NOT a work authorization or residency document.

What ITIN Does NOT Do

• Does not authorize you to work in the US
• Does not provide Social Security or Medicare benefits
• Does not serve as government-issued photo ID
• Does not change your immigration status

How to Apply for an ITIN (Form W-7)

1. Complete Form W-7: "IRS Application for Individual Taxpayer Identification Number." Accuracy is critical — errors cause delays or rejections.
2. Prepare Supporting Documents: You must prove identity and foreign status. Acceptable documents include passport (most common and sufficient on its own), national ID card, or birth certificate.
3. Attach Your Tax Return: Form W-7 is typically submitted with a federal tax return (e.g., Form 1040-NR). Some exceptions allow ITIN applications without a tax return.
4. Submit Your Application:
   By mail: Internal Revenue Service, ITIN Operation, P.O. Box 149342, Austin, TX 78714-9342, USA
   Through a Certifying Acceptance Agent (CAA) or IRS Taxpayer Assistance Center

Processing time: 8–12 weeks (up to 14 weeks during peak filing season).

ITIN Expiration

ITINs issued after December 31, 2012 expire if not used on a US federal tax return at least once in the last three consecutive years. Expired ITINs must be renewed before filing a US tax return.

ITIN for Banking

Some US banks accept ITIN instead of SSN for individual account opening. However, for foreign-owned LLC bank accounts (Mercury, Relay, Wise Business), the LLC''s EIN — not a personal ITIN — is what''s required. ITIN is only needed for personal banking in the US.

How Akkemik Can Help

Akkemik Consultancy assists with ITIN applications as part of our tax compliance services for foreign entrepreneurs. We prepare Form W-7, gather required documentation, and coordinate with the IRS on your behalf. Contact us at info@akkemik.net.