IRS Issued Identification Numbers Pub 4012 Tab L

IRS Issued Identification Numbers Pub 4012 Tab L Pub 4491 Page 18 TAX-AIDE NTTC Training – 2013 1

IRS Issued Identification Numbers ● ITIN – Individual Taxpayer Identification Number ● ATIN – Adoption Taxpayer Identification Number ØUsed in place of social security number TAX-AIDE NTTC Training – 2013 2

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 TAX-AIDE NTTC Training – 2013 3

To Obtain an ITIN ● Client completes W-7 application (W-7 S for Spanish language preference) Attaches required documents proving identity Files with tax return Tax return cannot be e-filed ● Client can also walk documents into IRS Taxpayer Assistance Center or authorized Acceptance Agent TAX-AIDE NTTC Training – 2013 4

ITIN ● IRS processing time 6 weeks (or more) ● Newly issued ITINs expire after 5 years ● Once gets SSN Taxpayer should notify IRS Will combine tax records under new SSN TAX-AIDE NTTC Training – 2013 5

ITIN ● Starts with a 9 ● Middle 2 digits are within certain numeric range set by IRS ● Tax. Wise identifies an ITIN when it is entered TAX-AIDE NTTC Training – 2013 6

Taxpayer with ITIN ● Verify ITIN IRS ITIN letter or ITIN card ● ITIN returns can be e-filed Taxpayer and/or spouse ITIN TAX-AIDE NTTC Training – 2013 7

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 TAX-AIDE NTTC Training – 2013 8

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 TAX-AIDE NTTC Training – 2013 9

ITIN ● Tax. Wise recognizes ITIN ● Checks W-2 ITIN box and makes required input field red TAX-AIDE NTTC Training – 2013 10

ITIN ● If no SSN nor ITIN for Taxpayer ● Use “Apply for ITIN” option ● Complete return ● Cannot be e-filed TAX-AIDE NTTC Training – 2013 11

ITIN ● No SSN and no ITIN for spouse or dependent(s) ● Need to create temporary identification number(s) ● See Pub 4012 Page L-3 TAX-AIDE NTTC Training – 2013 12

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 TAX-AIDE NTTC Training – 2013 13

ATIN ● Client submits Form W-7 A 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 ØMailed to IRS, 4 – 8 weeks to process TAX-AIDE NTTC Training – 2013 14

ATIN ● When the adoption becomes final Adopting parents obtain SSN for child AND Notify IRS of new SSN ● IRS will deactivate ATIN automatically after two years Extension can be requested if adoption not yet final TAX-AIDE NTTC Training – 2013 15

ATIN ● Taxpayer should complete W-7 A process ● Taxpayer brings ATIN letter from IRS TAX-AIDE NTTC Training – 2013 16

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 TAX-AIDE NTTC Training – 2013 17

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 TAX-AIDE NTTC Training – 2013 18

ATIN ● Like an ITIN, nine-digit ATIN begins with number 9 ● Use ATIN on return wherever child’s social security number is requested TAX-AIDE NTTC Training – 2013 19

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 TAX-AIDE NTTC Training – 2013 20

IRS Issued Identification Numbers Questions? Comments… TAX-AIDE NTTC Training – 2013 21