An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service (IRS) to individuals who do not qualify for a Social Security number but are required to file U.S. taxes. It allows individuals without Social Security numbers to comply with U.S. tax laws, providing a means for reporting income earned within the United States. For example, a foreign national residing in the U.S. temporarily, who earns income but is ineligible for a Social Security number, may be assigned an ITIN.
The relevance of this number stems from the need for comprehensive tax reporting regardless of citizenship or residency status. Its availability ensures that non-residents and other specific categories of individuals are able to meet their tax obligations, contributing to the integrity of the U.S. tax system. Historically, this system has been crucial for accurately accounting for all income within the nation and for enforcing tax compliance among a diverse population.
