TAX-AIDE

TAX-AIDE

IRS Issued Identification Numbers

Pub 4012 Tab LPub 4491 Part 1

NTTC Training – 2014 1

TAX-AIDE

IRS Issued Identification Numbers

● ITIN – Individual Taxpayer Identification Number

●ATIN – Adoption Taxpayer Identification Number

Used in place of social security number

NTTC Training – 2014 2

TAX-AIDE

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

NTTC Training – 2014 3

TAX-AIDE

To Obtain an ITIN

● Taxpayer completes W-7 application (W-7S for Spanish language preference) Attaches required documents proving

identity Files with tax return Tax return cannot be e-filed

● Taxpayer can also walk documents into IRS Taxpayer Assistance Center or authorized Acceptance Agent

NTTC Training – 2014 4

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ITIN

● IRS processing time 6 weeks (or more)

●Newly issued ITINs expire if not used within five years

●Once gets SSN Taxpayer should notify IRS Will combine tax records under new SSN

NTTC Training – 2014 5

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ITIN

● Starts with a 9

●Middle 2 digits are within certain numeric range set by IRS

●TaxWise identifies an ITIN when it is entered

NTTC Training – 2014 6

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Taxpayer with ITIN

●Verify ITIN IRS ITIN letter or ITIN card

● ITIN returns can be e-filed Taxpayer and/or spouse ITIN

NTTC Training – 2014 7

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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

NTTC Training – 2014 8

TAX-AIDE

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

NTTC Training – 2014 9

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ITIN

●TaxWise recognizes ITIN ●Checks W-2 ITIN box and makes required

input field red

NTTC Training – 2014 10

TAX-AIDE

ITIN

● If no SSN nor ITIN for Taxpayer

●Use “Apply for ITIN” option

●Complete return

●Cannot be e-filed

NTTC Training – 2014 11

TAX-AIDE

ITIN

●No SSN and no ITIN for spouse or dependent(s)

●Need to create temporary identification number(s)

● See Pub 4012 Page L-3

NTTC Training – 2014 12

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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

NTTC Training – 2014 13

TAX-AIDE

ATIN

●Taxpayer submits Form W-7A 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

Mailed to IRS, 4 – 8 weeks to process

NTTC Training – 2014 14

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ATIN

● When the adoption becomes final Adopting parents obtain SSN for child AND Notify IRS of new SSN

● IRS will deactivate ATIN

● IRS will deactivate ATIN automatically after two years Extension can be requested if adoption not

yet final

NTTC Training – 2014 15

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ATIN

●Taxpayer should complete W-7A process

●Taxpayer brings ATIN letter from IRS

NTTC Training – 2014 16

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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

NTTC Training – 2014 17

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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

NTTC Training – 2014 18

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ATIN

● Like an ITIN, nine-digit ATIN begins with number 9

●Use ATIN on return wherever child’s social security number is requested

NTTC Training – 2014 19

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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

NTTC Training – 2014 20

TAX-AIDE

IRS Issued Identification Numbers

NTTC Training – 2014 21

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