CAA IRS ITIN Application Process 2 — Questions and Answers
Question 1: Which IRS form does an applicant use to apply for a new ITIN or to renew an existing one?
- Form SS-5
- Form W-8BEN
- Form W-7 (Correct answer)
- Form 13551
Correct answer: Form W-7
Form W-7 is the Application for IRS Individual Taxpayer Identification Number, used for both new and renewal requests.
Question 2: Which single document can prove both identity and foreign status without any other supporting document?
- Foreign driver's license
- Valid passport (Correct answer)
- Civil birth certificate
- U.S. state identification card
Correct answer: Valid passport
A current passport is the only stand-alone document that establishes both identity and foreign status.
Question 3: If an applicant does not submit a passport, what is the minimum number of acceptable documents required?
- One
- Two (Correct answer)
- Three
- Four
Correct answer: Two
Without a passport, at least two documents are required, and together they must prove identity and foreign status, with at least one containing a photo.
Question 4: How must an ITIN number begin?
- With the digit 9 (Correct answer)
- With the digit 0
- With the digit 7
- With the applicant's country code
Correct answer: With the digit 9
Every ITIN is a nine-digit number that begins with 9.
Question 5: An ITIN that is not used on a federal tax return for three consecutive tax years expires when?
- Immediately after the third year's filing deadline
- On December 31 of the third consecutive year (Correct answer)
- On the applicant's birthday in the fourth year
- On April 15 of the fourth year
Correct answer: On December 31 of the third consecutive year
Under the PATH Act, an ITIN not used on a federal return for three consecutive years expires on December 31 of the third year.
Question 6: Which statement about what an ITIN provides is correct?
- It authorizes the holder to work in the United States
- It qualifies the holder for Social Security benefits
- It changes the holder's immigration status
- It is used for federal tax reporting purposes only (Correct answer)
Correct answer: It is used for federal tax reporting purposes only
An ITIN is issued only for federal tax purposes and does not authorize work, confer immigration status, or provide Social Security benefits.
Question 7: An ITIN holder later becomes eligible for a Social Security Number. What should they do?
- Keep using the ITIN for tax returns
- Use both numbers on alternating returns
- Obtain the SSN and notify the IRS so the ITIN records can be combined (Correct answer)
- Let the ITIN expire without telling the IRS
Correct answer: Obtain the SSN and notify the IRS so the ITIN records can be combined
Once eligible for an SSN, the individual must use it and notify the IRS so tax records under the ITIN are associated with the SSN.
CAA IRS ITIN Application Process 2
Which IRS form does an applicant use to apply for a new ITIN or to renew an existing one?