Download - TAX-AIDE IRS Issued Identification Numbers Pub 4012Tab L Pub 4491Part 1 NTTC Training – 2014 1
TAX-AIDE
TAX-AIDE
IRS Issued Identification Numbers
Pub 4012 Tab LPub 4491 Part 1
NTTC Training – 2014 1
TAX-AIDE
IRS Issued Identification Numbers
● ITIN – Individual Taxpayer Identification Number
●ATIN – Adoption Taxpayer Identification Number
Used in place of social security number
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TAX-AIDE
ITIN
● IRS issues ITIN to individual who must have U.S. taxpayer identification number Do not have, and are not eligible to get,
Social Security Number (SSN)
● ITINs are issued regardless of immigration status
● ITIN is tax identification number for IRS only
● ITIN is not a form of identification
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TAX-AIDE
To Obtain an ITIN
● Taxpayer completes W-7 application (W-7S for Spanish language preference) Attaches required documents proving
identity Files with tax return Tax return cannot be e-filed
● Taxpayer can also walk documents into IRS Taxpayer Assistance Center or authorized Acceptance Agent
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TAX-AIDE
ITIN
● IRS processing time 6 weeks (or more)
●Newly issued ITINs expire if not used within five years
●Once gets SSN Taxpayer should notify IRS Will combine tax records under new SSN
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ITIN
● Starts with a 9
●Middle 2 digits are within certain numeric range set by IRS
●TaxWise identifies an ITIN when it is entered
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Taxpayer with ITIN
●Verify ITIN IRS ITIN letter or ITIN card
● ITIN returns can be e-filed Taxpayer and/or spouse ITIN
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With ITIN
●Can claim dependency exemption for dependents
●Can claim child tax credit/additional child tax credit
●Can claim child/dependent care credit
●Cannot claim earned income credit If obtain SSN within 3 years, can amend
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ITIN
●Taxpayer may be using a SSN that is not their own
●W-2 may reflect that bad SSN
●Do not change any info on W-2
●On W-2 input, enter SSN as on W-2
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TAX-AIDE
ITIN
●TaxWise recognizes ITIN ●Checks W-2 ITIN box and makes required
input field red
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ITIN
● If no SSN nor ITIN for Taxpayer
●Use “Apply for ITIN” option
●Complete return
●Cannot be e-filed
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TAX-AIDE
ITIN
●No SSN and no ITIN for spouse or dependent(s)
●Need to create temporary identification number(s)
● See Pub 4012 Page L-3
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ATIN
●Taxpayers need ATIN for their adoptive child if In process of adopting child Unable to get SSN for any reason Able to claim child as dependent, or Able to claim child and dependent care
credit
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TAX-AIDE
ATIN
●Taxpayer submits Form W-7A with copies of required documents to IRS
● IRS issues ATIN for child if Final domestic adoption is pending, and Adopting taxpayers do not have child’s
SSN
Mailed to IRS, 4 – 8 weeks to process
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TAX-AIDE
ATIN
● When the adoption becomes final Adopting parents obtain SSN for child AND Notify IRS of new SSN
● IRS will deactivate ATIN
● IRS will deactivate ATIN automatically after two years Extension can be requested if adoption not
yet final
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ATIN
●Taxpayer should complete W-7A process
●Taxpayer brings ATIN letter from IRS
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Child with ATIN
●Can claim dependency exemption
●Can claim child or dependent care credit
●Can claim child tax credit/additional child tax credit
●Can claim adoption credit – out of scope
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Child with ATIN
●Cannot claim Earned Income Credit with ATIN Can claim EIC with other qualifying
children who have SSNs Can amend when get SSN for adopted
child
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ATIN
● Like an ITIN, nine-digit ATIN begins with number 9
●Use ATIN on return wherever child’s social security number is requested
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Taxpayer Summary – ITIN/ATIN
●Provide taxpayer copy of W-7 form and instructions if they have to complete
●Remind taxpayer of expiration date Need to reapply or extend?
●Remind taxpayer of ability to amend when they get SSNs
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TAX-AIDE
IRS Issued Identification Numbers
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