Getting an ITIN does not authorize an individual to work in the United States. It does not make you eligible for Social Security benefits either. ITINs serves an individual’s purpose of federal tax reporting.
Apart from helping you with filing your tax returns, an ITIN also enables you to receive a refund of income tax withholding and claim tax benefits. Even if you want to open a bank account or apply for a mortgage loan, you may find an ITIN quite useful.
If you do not have an ITIN yet, SCL Tax Services will help you get the number fast and in a hassle-free manner.
This is the procedure we follow:
First, we must make sure the applicant qualifies for an ITIN. This is determined by the number of days in the United States and if any income was earned during that time. The applicant must also have documents to establish identity and foreign status.
We find that their current and valid passport will prove both.
Once we have checked the qualification and identity, we move on to certifying the document. We are certifying agents, which means, we can save the applicant a trip to their consulate to “certify the documents authenticity”. There are not many certifying agents in our area.
After certifying the document, we move on to the W-7- Application for IRS Individual Taxpayer Identification Number. This application is very sensitive and must be filled out correctly or the IRS will reject it.
Next step is to work on the tax return that must be attached to the application. Most applications are submitted with income earned as a subcontractor. This income is reported on SCH C and it is subject to both income and self-employment tax.
Our main objective for this income is to make sure we offset it with any expenses the applicant had to earn the income, and can prove it with receipts.
After we have gone through all income and expenses, the remaining income, also known as the Profit, will be taxed.
The tax that is due, must be mailed in with the return. A check or money order made out to “The United States Treasury” is attached to the return. The return is mailed out “certified mail” by the applicant so there is some sort of tracking with the application, tax return and check.
The process is noted to take up to 13 weeks, but in our experience, if all is done correctly on the application and tax return, the process can take up to 6 weeks. We also assist taxpayers with any IRS correspondence they may receive from the IRS in reference to the ITIN Application.
The ITIN application process can be tough and time-consuming if you handle it on your own. Seek the help of our tax pros and CAAs, so that the process becomes easier and you get your number quickly. Give SCL Tax Services in Bronx, New York a quick call to start the process right away.