How to Get an ITIN: A Guide for Foreign Founders

An ITIN (Individual Taxpayer Identification Number) is a 9-digit number issued by the IRS for individuals who need a US tax ID but aren't eligible for a Social Security Number.

When do you need an ITIN?

• •Filing a US tax return (Form 1040-NR)
• •Claiming tax treaty benefits
• •Being listed as a responsible party on Form SS-4
• •Opening certain US financial accounts
• •Filing Form 5472 as a foreign individual

How to apply

Form W-7 is the ITIN application. You'll need:

• •Completed Form W-7

• •Tax return — In most cases, you must attach the tax return for which the ITIN is needed

• •Identity documents — Original passport (or certified copy from the issuing agency)

Three ways to submit

Option 1 — By mail. Send Form W-7, your tax return, and original identity documents to the IRS ITIN Operation in Austin, TX. Processing: 7-11 weeks. Downside: your original passport will be mailed back, but it's out of your hands for weeks.

Option 2 — Certifying Acceptance Agent (CAA). A CAA is an IRS-authorized person who can verify your identity documents and submit your application. You keep your original passport. Processing: 7-11 weeks, but more convenient.

Option 3 — In person. Visit an IRS Taxpayer Assistance Center in the US. Bring your documents and Form W-7. This requires being physically in the US.

Tips for a smooth application

• •Use a CAA. It's worth the fee to avoid mailing your passport.

• •Apply early. The 7-11 week processing time can conflict with filing deadlines.

• •Get the tax return right. A rejected tax return means a rejected ITIN application.

• •Passport must be current. Expired passports are not accepted.

ITIN renewal

ITINs expire if not used on a tax return for 3 consecutive years, or if issued before 2013 (rolling expiration schedule). Renew using the same Form W-7 process.

After you get your ITIN

Your ITIN looks like an SSN (9 digits, formatted XXX-XX-XXXX) but always starts with the number 9. Use it on tax returns, W-8BEN forms, and any IRS form requiring a taxpayer identification number.