Friday 24 January 2014

What is an ITIN and who needs one?



What is an ITIN?

ITIN stands for Individual Taxpayer Identification Number. The IRS issues it to individuals who cannot get a Social Security Number but who must file federal tax forms, like aliens who earn income while in the US. ITIN is a nine-digit number, much like a SSN, but the first number starts in a “9.” 

What is Alien Status? 

Aliens are people from other countries who come to the US for education or work. For example, students, visiting teachers and foreign laborers are aliens. Their resident or non-resident status is determined by factors like length of time in the country. While in this country, they often earn income and the IRS requires they pay their taxes, just like regular citizens.

                                        

Who needs an ITIN? 

You need to get an ITIN if you make wages, tips or a salary while you are in the US. If you earn money from investments, receive gifts, or win prizes from US sources while you are in the US, you must file a federal income tax form, so you need an ITIN. In addition, if you make money form the sale of investments or other transactions in the US, you must file a federal income tax form. 

Everyone is required to file and pay his or her taxes. In many instances, an alien should want to file taxes because their employer withdrew taxes from their payroll check, and they are eligible for a refund. Without an ITIN number, they cannot file for a refund. 

The immigration status of aliens is of no interest to the IRS. The IRS collects taxes. They do not enforce immigration laws, but the IRS does expect people living in a gray area between alien and citizen status to pay their taxes. The OMG Tax Services have been dealing with the IRS and back taxes from over 50 years. They could impose fine on aliens who do not. 

Compliance 

Sources say that compliance with the tax laws of the US help aliens in transitional immigration status gain citizenship easier, and that non-compliance with the IRS could hurt the process of gaining citizenship. When an alien gets an ITIN number, it does not legitimize any claim to citizenship, but it might help aliens gain citizenship. If you pay your taxes in the US, the IRS likes you and that may help you become a citizen. For More Information Please Visit - omgtax.com

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