TAX-AIDE IRS Issued Identification Numbers Pub 4012 – Tab L Pub 4491 – Part 1 – Lesson 4 and Part 2 – Lesson 8

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 – TY2015 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 – TY2015 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 – TY2015 4

TAX-AIDE ITIN ● IRS processing time 6 weeks (or more) ● Newly issued ITINs expire if not used within five years ● Once SSN is received: Taxpayer should notify IRS Will combine tax records under new SSN NTTC Training – TY2015 5

TAX-AIDE 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 – TY2015 6

TAX-AIDE Taxpayer with ITIN ● Verify ITIN IRS ITIN letter or ITIN card ● ITIN returns can be e-filed Taxpayer and/or spouse ITIN NTTC Training – TY2015 7

TAX-AIDE 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 NTTC Training – TY2015 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 – TY2015 9

TAX-AIDE ITIN ● TaxWise recognizes ITIN ● Checks W-2 ITIN box and makes required input field red NTTC Training – TY

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

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 ● If dependent is not a resident, no child tax credit Pub 4012 Page L-1 for residency determination NTTC Training – TY

TAX-AIDE 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 – TY

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 – TY

TAX-AIDE 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 – TY

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

TAX-AIDE Child with ATIN ● Can claim dependency exemption ● Can claim child or dependent care credit ● Can claim child tax credit/additional child tax credit (child must be US citizen or resident) ● Can claim adoption credit – out of scope NTTC Training – TY

TAX-AIDE Child with ATIN ● Cannot claim Earned Income Credit with ATIN Can claim EIC with other qualifying children who have SSNs NTTC Training – TY

TAX-AIDE 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 – TY

TAX-AIDE Taxpayer Summary – ITIN/ATIN ● Provide taxpayer copy of W-7 form and instructions if they have to complete NTTC Training – TY

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