One of the common challenges faced by foreign nationals who work or invest in the United States is obtaining an Individual Taxpayer Identification Number (ITIN) for tax filing purposes. An ITIN is a tax processing number issued by the IRS to individuals who are not eligible for a Social Security Number (SSN), such as nonresident aliens and other foreign nationals.
This article explains why an ITIN may be required, how to apply, and highlights certain exceptions where tax returns do not need to be attached to the ITIN application.
Overview of the ITIN
An ITIN is generally required for the following reasons:
- To claim benefits under a U.S. tax treaty
Nonresident aliens who wish to claim reduced rates or exemptions on partnership income, interest, or other U.S. source income under a tax treaty must obtain an ITIN. - To file a U.S. tax return for U.S.-source income
Nonresident aliens who have earned income within the United States, or who are seeking a refund of taxes withheld, are required to file a tax return using an ITIN. - For dependents or spouses of U.S. citizens or residents
If the spouse or dependent of a U.S. citizen or resident does not have a Social Security Number (SSN), they must obtain an ITIN in order to be listed on the return. - For students and researchers
Foreign students, professors, and researchers who are nonresidents and receiving scholarships or fellowships (even if they are not working) may also need an ITIN for tax reporting purposes.
In these cases, an ITIN is required in order to file a tax return. However, there are certain exceptions where an ITIN can be obtained without attaching a tax return, depending on the applicant’s situation.
Common Exceptions for Obtaining an ITIN Without a Tax Return
In certain situations, individuals may apply for an ITIN without submitting a U.S. tax return. The following are common exceptions:
- Third-Party Withholding on Passive Income
This exception applies when a third party—such as a bank or financial institution—is required to report passive income (e.g., interest or rental income) to the IRS. For example, if the applicant receives income from a partnership, a letter or contract from the partnership confirming the income is required. - Wages or Scholarships Covered by a Tax Treaty
Nonresident aliens from countries that have a tax treaty with the United States may apply for an ITIN without attaching a tax return, if they are eligible for treaty benefits on wages or scholarships. Supporting documentation such as a letter from the employer or a contract from the scholarship provider is required. - Mortgage Interest Reported by a Lender
If an individual pays mortgage interest on U.S. real estate, and the lender reports that interest to the IRS, the individual may need to obtain an ITIN to provide to the lender. In such cases, a tax return is not required. - Withholding on the Disposition of U.S. Real Property
When a foreign individual sells U.S. real estate, the buyer may be required to withhold taxes under FIRPTA. The seller needs an ITIN for the withholding process, even if no tax return is being filed at that time.
Support as a Certified Acceptance Agent (CAA)
Hiromi K. Stanfield, CPA Inc. is officially authorized by the IRS as a Certified Acceptance Agent (CAA).
Our firm supports clients throughout the ITIN application process by preparing the necessary documents, conducting in-person identity verification, and assembling the required paperwork to ensure accurate and efficient submission.
This service is currently available only to individuals residing in the state of California.
To maintain the security of document handling and ensure consistent service quality, we do not offer this service to individuals living outside California or overseas.
All application documents entrusted to us are submitted to the IRS using a secure, trackable delivery method.
After identity verification, original documents such as passports are returned to the client using the same secure and trackable method.
Conclusion
An ITIN plays an important role in U.S. tax filing and other related procedures. It is required by a wide range of individuals, including nonresident aliens, dependents or spouses without a Social Security Number (SSN), and international students.
In certain cases, individuals may be eligible to apply for an ITIN without attaching a tax return, depending on their specific situation.
At Hiromi K. Stanfield, CPA Inc., we are an IRS-authorized Certified Acceptance Agent (CAA), and we are committed to supporting your ITIN application with care and accuracy.
If you have any questions or concerns about the application process, please don’t hesitate to contact us.
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