Everything You Need to Know About Applying for an ITIN Number

 Everything You Need to Know About Applying for an ITIN Number

If you are an immigrant in the United States, including if you’re here on a work visa or on an F1 visa (student visa), then you may be required to pay taxes like everyone else in the country. However, your resident alien number (also known as an alien registration number or USCIS number) is not sufficient to file your tax returns; you must apply for and receive an ITIN instead. What’s an ITIN? What can it be used for? We’ll cover everything you need to know about applying for one below!

Si necesitas obtener un numero ITIN para ti puedes contactarnos al 240-424-0704

How do I know if I need an ITIN?

If you're a foreign national who has taxes withheld from your paycheck or other income, then you need to apply for an Individual Taxpayer Identification Number (ITIN). Essentially, every tax-paying American needs one of these numbers. An ITIN allows US organizations that you do business with to verify your identity so they can report taxes withheld on your behalf. An ITIN is not intended as a form of identification—instead, it provides a unique number so that organizations working in compliance with IRS requirements can accurately report and withhold taxes from their employees who are non-resident aliens. Just because you have one doesn't mean you'll owe money back if you haven't paid into Social Security or Medicare; it just means it makes filing easier down the line!

Si necesitas obtener un numero ITIN para ti puedes contactarnos al 240-424-0704

Am I eligible to apply for an ITIN?

One generally must meet the following criteria in order to qualify for an ITIN a U.S. citizen who doesn't have a Social Security number; if you are unsure whether you need to file a tax return or claim an exemption from filing taxes, you may be required to have an ITIN. So, if you meet none of these criteria, you can't apply for an ITIN. But if you do meet all of them, you should start right away! An ITIN is a nine-digit number assigned to any citizen of the United States who is ineligible for a Social Security number. It is issued by the Internal Revenue Service (IRS), which uses it to process your income tax returns. A tax ID is somewhat similar to a social security number (SSN) in that it allows you to report your income and claim certain deductions on your federal income tax return.

Si necesitas obtener un numero ITIN para ti puedes contactarnos al 240-424-0704

The new about the ITIN

As of June 30th, 2014, Individual Taxpayer Identification Numbers (ITINs) will expire if not used on a federal income tax return for five consecutive years. The IRS will not begin deactivating ITINs until 2016.

Under the new policy:

• An ITIN will expire for any taxpayer who fails to file a federal income tax return for five consecutive tax years.

• Any ITIN will remain in effect as long as a taxpayer continues to file U.S. tax returns. This includes ITINs issued after Jan. 1, 2013. These taxpayers will no longer face mandatory expiration of their ITINs and the need to reapply starting in 2018, as was the case under the old policy.

• To ease the burden on taxpayers and give their representatives and other stakeholders time to adjust, the IRS will not begin deactivating unused ITINs until 2016. This grace period will allow anyone with a valid ITIN, regardless of when it was issued, to still file a valid return during the upcoming tax-filing season.

• A taxpayer whose ITIN has been deactivated and needs to file a U.S. return can reapply using Form W-7. As with any ITIN application, original documents, such as passports, or copies of documents certified by the issuing agency must be submitted with the form.

"The ITINs have started to expire already."

How to pay legally to your workers

May be you are thinking: “there must be a way to avoid all problems regarding paying people without a Social Security Number”

The good news is “YES, There is one”

Avoid all those IRS problems because every once in a while the IRS will call randomly to business owners in order to clarify those non matching Social Security Number and will try to verify the real identity of the names who appear there. That scene sounds familiar for you, huh?

Let me tell you this, John C. had an awful moment when the IRS called him and inquired about some names which didn’t match with their Social Security Numbers. But guess what? That didn’t happen in one single year but it repeated through several years and accumulated a good amount of money in penalties and some other stuff that I don’t want to name here. The verdict was that he had to pay more than $10,000 per worker for every year that those numbers appeared in the IRS payroll records.

This was a real story and it could happen to you.
That problem could have been avoided if only John C. had verified those numbers with the IRS instead of hiring and keeping workers in a rush. But how can somebody with limited time do that?
There are some options, and one of them is to hire somebody who does it for you. Or do it your self.
In both scenarios you could have a hard time if you find mismatching information concerning those numbers.

But not everything is lost. There is a good and viable option to look for the cure and that is:

Try talking to your workers and put in a sincere way of mentioning: tell him or her that you need to pay him/her legally and for that you require that he/she ask for an IRS number. There is an important reason to request for one IRS number and it is that at the moment when you make your taxes or company taxes you won’t have any problem trying to prove that those numbers are real, because they will be.

Remember that we are not talking about hiring ilegal aliens but everything concerning IRS problems as a result of not having a way to pay legally to your workers.

If for any reason you have any question regarding this topic, please do not hesitate and contact me at topinforma@gmail.com
http://www.globalmultiservices.net/
http://paylegally@blogspot.com/