A tax return is an important paper or a set of papers that is filed with a tax authority and deals with computation of tax as well as other aspects relating to a given fiscal year. TAX RETURN stands for the service where to submit the tax return is an important step to be compliant with the tax laws and in order to pay the amount due taxes or to claim the refunds owed to a person.

For those that do not meet the requirement for a Social Security number but needs an identity for US taxation purposes they have to apply for an Individual Taxpayer Identification Number/ITIN.

With the help of the listed steps and the submission of all needed documentation and explanations, one can apply for the ITIN, while not preparing a federal tax return, and remain in compliance with the IRS rules and at the same time meet one’s particular needs.

Approved by the IRS, sometimes one can apply for an ITIN even if they are not a resident or do not have to file for taxes. Anybody who receives scholarship or any individual who wants to benefit from the tax treaty agreement between the two countries or any person whose income is withheld by a third party may need an ITIN for other purposes apart from filing of taxes.

What is Individual Taxpayer Identification Number OR ITIN ?

The remaining people can enroll for an SSN; otherwise, they will apply for an Individual Tax Identification Number (ITIN). The IRS is the United States government agency that collects taxes, and this body also provides ITINs.  ITIN is a 9-digit number beginning with the number 9 and formatted like an SSN; (NNN-NN-NNNN).  ITIN should be reserved for tax reporting purpose only.

What is the tax return?

A tax return is a form or forms submitted to a certain tax-collecting authority providing detailed information on the income, the expense and other tax-related items of the concerned taxpayer. In the United States, tax returns are filed to the Internal Revenue Service, at state level or local level depending on the type of tax involved. Simply, the main goal of the tax return is to compute for the correct tax due from the filer or how much refund the filer deserves. This section of the Tax Return is made up of the following:

• Income
• Deductions and Credits
• Taxes Paid
• Filing Status
• Personal Information

Requirements for Applying for ITIN

Some people who must apply for ITIN are also required to show a way that they are unique and why they need to use this number. Thirteen documents are legitimate for usage in the ITIN application, according to IRS. Name and photo must appear on all records. Also, the documentary must support your request for an alien status. If, for any reason, you will need the original records of your submitted ITIN application within 60 days of submission, you should use the IRS Taxpayer Assistance Center often referred to as CAA. Instead originals certified by the issuing organization may be sent.

Acceptable documents:

• Passport (stand-alone document) 
• National identification card (must show photo, name, current address, date of birth, and expiration date)
• U.S. driver’s license
• Civil birth certificate (required for dependents under 18 years of age)
• Foreign driver’s license
• U.S. state identification card
• Foreign voter’s registration card
• U.S. military identification card
• Foreign military identification card
• Visa
• U.S. Citizenship and Immigration Services (USCIS) photo identification
• Medical records (dependents only – under 6)
• School records (dependents only – under 14, under 18 if a student)

Common Reasons for Applying for an ITIN

Having an ITIN allows individuals to comply with U.S. tax laws, file tax returns, and receive tax refunds or credits to which they may be entitled. Common reasons for applying an ITIN include

• Non-Resident Alien Filing a U.S. Tax Return
• Resident Alien Filing a U.S. Tax Return
• Dependent or Spouse of a U.S. Citizen/Resident Alien
• Dependent or Spouse of a Non-Resident Alien Visa Holder
• Non-Resident Claiming Tax Treaty Benefits
• Foreign Investors in the U.S.
• Individuals with U.S. Income
• Disbursement of Scholarship/Fellowship Income
• Opening a U.S. Bank Account
• Real Estate Transactions

Applying for an ITIN Without Filing a Tax Return

Applying for an ITIN without filing taxes is possible under specific circumstances recognized by the IRS. Exception Categories:

• Third-Party Withholding
• Scholarships, Fellowships, and Grants
• Income from U.S. Trading
• Mortgage Interest
• Banking Purposes

How to Prove Your Need for an ITIN and Not Have a Tax Return?

If articulating a need for an ITIN in order and you are not filing your taxes, then one has to show the IRS that you fall in an exception category that the IRS has set. As a result of ensuring that you explain your need for ITIN and producing the necessary supportive documents, a person can prove his or her eligibility of the IRS exceptions list, where one does not have to file taxes to apply for ITIN.

What are the Issues and Best Practices when it comes to ITIN Application?

ITIN application may pose several difficulties, primarily when an applicant has to follow the procedure from a distance, staying in a different country. Some of the challenges include obtaining the identification and foreign status records which may take time because of bureaucracy at some local area offices. Language issues may also be an issue, as translations of documents that are not in English must be certified and therefore take time and money. Int mocks mailing may lead to delays and records being lost or being damaged in the process. IRS-authorized Acceptance Agents can help also in verifying records and preparing appropriate application. Using post services from accredited courier services with tracking means that records are safely and timely delivered to the IRS.

The applications for ITIN without Tax returns

It is possible to obtain an ITIN even without filing tax returns as long as the situation in question is complied with the IRS. Some other reasons for an ITIN include receiving income under a U.S according to third party, being a scholarship recipient, or as a person seeking to claim treaty benefits. The process of applying is to fill W-7 form then attach a letter that describes one’s circumstances and need for the ITIN. Letters from withholding agents, educational centers or other financial centers where a person needs to have ITIN should be attached to the application. Application forms must also include Identification records or certified copies of identity and evidence of foreign status. This is because using Acceptance Agents authorized by the IRS can always assist in reviewing records and minimizes on such mistakes. Such are the necessary and sufficient steps for applying for the ITIN if the applicant has no intention of filing taxes as well.