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I.R.S.
IMPOSING NEW RESTRICTIONS ON I.T.I.N’s
by Michael J. Gurfinkel, Esq.
The Internal Revenue Service (IRS) has issued new regulations
that would make it harder for people to obtain an Individual Taxpayer
Identification Number (ITIN) and will restrict its use to tax
filing and reporting purposes only.
ITIN is a nine-digit, tax processing
number issued by the IRS to individuals who are unable to obtain
a Social Security Number, but must file tax returns. Many people,
who don’t have legal authorization to work, try to use the
ITIN in lieu of an SS#, to apply for a job. However, an ITIN does
not authorize a person to work, and, legally, cannot be used for
a job, in place of an SS#.
The Social Security Administration imposed strict
requirements to obtain SS#’s years ago, and since then,
illegal immigrants have turned to ITINs for purposes other than
for tax filing, such as to find employment, to open a bank account,
to purchase property, or to be used as an identification card.
The IRS said it has issued 7 million ITINs since 1996, but only
about one-fourth of this number actually used the number to file
income tax returns.
In the past, ITINs were issued regardless of a person’s
immigration status. The IRS has now made it clear that the ITIN
is intended only for filing tax returns, and does not authorize
a person to work in the United States, nor does it provide eligibility
for Social Security benefits or the Earned Income Tax Credit.
The IRS added that ITIN is not a valid identification outside
of the US tax system.
To ensure that the ITINs are used only for tax filing
and reporting purposes, the IRS issued the following changes,
effective as of December 17, 2003:
- All new ITIN applicants will have to show a
federal tax purpose for seeking an ITIN. For those seeking an
ITIN for their income tax obligations, this will require attaching
a tax return to the new Form W-7 when they are ready to file
their income tax return.
- ITIN applications, without proof of need for
tax purposes, will be rejected.
- The IRS will reduce from 40 to 13 the number
of acceptable documents as proof of identity to obtain an ITIN.
- The IRS will no longer issue ITIN cards, but
will instead issue an authorization letter, containing the new
ITIN, to avoid any possible similarity with a Social Security
card, or attempts by illegal aliens to use an ITIN card like
it was a Social Security card.
Per IRS, ITINs have been misused and abused by many
illegal immigrants. Many of them thought that by obtaining an
ITIN, they could work, obtain driver’s license, and do other
things that only legal immigrants are allowed to do. After September
11, 2001 many agencies have tighten their rules, to ensure that
only those who are legally
living in the US may obtain benefits.
Obviously, the government is very serious about
enforcing immigration laws. It is now more difficult to be illegal
in the U.S. That’s why I advise people to legalize their
status now. There is no “shortcut” or “quick
fix” to achieving the American Dream. The only way is through
the legal way. Instead of relying on quick fixes and other “shortcuts”,
you should seek the advice of a reputable attorney, who can analyze
your situation and options, and help you find the best and legitimate
way to obtain legal status.
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