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
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