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Overview of Taxpayer Identification Numbers Available to Aliens
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The Internal Revenue Service (IRS) has three kinds of taxpayer identification numbers: social security numbers (SSNs), individual taxpayer identification numbers (ITINs), and employer identification numbers. Many aliens are under the impression that they ought to have a U.S. social security number (SSN) if possible. However, the Social Security Administration (SSA) issues lesser-known alternative numbers to individuals, called individual taxpayer identification numbers (ITINs) that can satisfy the needs of most aliens. ITINs, instituted in 1996, are made available to certain resident and nonresident aliens who cannot obtain an SSN. This article will discuss the purpose and requirements of SSNs and ITINs, who is entitled to each, and the procedure by which aliens can receive a taxpayer identification number. Furthermore, the SSA and INS have worked together to develop a new process to stream line the application for an SSN and that is discussed here as well. Background on the Social Security Administration The Social Security Administration (SSA) has comprehensive regulations concerning SSNs and ITINs. In recent years the SSA has tightened its controls on the issuance of social SSN, especially for nonimmigrants. The SSA also maintains a record of the earnings reported for each individual based on SSNs. As discussed below, the SSA will sometimes grant SSNs for nonwork purposes. Such nonwork SSNs are purportedly tracked, and if earnings are reported to the SSA on a nonwork SSN, the SSA claims to inform the Internal Revenue Service. Social Security Numbers: Who Needs One and Who is Eligible to Have One? Many aliens think they need an SSN when in fact they do not. For example, lawful aliens do not need SSNs to purchase U.S. savings bonds, and some do not need SSNs to conduct business with a financial institution. A family member of an alien does not need a SSN to register for school, participate in group health insurance coverage, apply for school lunch programs, or apply for HUD housing. Further, federal law does not permit states to require a SSN to issue nondriver identification cards. All U.S. citizens can receive a SSN on request. Generally, aliens may gain SSNs in three instances: (1) if the alien is a permanent resident or has a legal status permitting him or her to work in the United States; (2) if the alien has a legal status not permitting him or her to work, but the alien can show that he or she has a valid nonwork purpose and needs an SSN; or (3) aliens without evidence of alien status may be assigned an SSN for a nonwork purpose if the necessary evidence does not exist, and if the alien, residing in the United States, needs the SSN by law as a condition for receiving a federally-funded benefit. Foreigners who reside outside of the United States who cannot establish entitlement to a SSN based on evidence of alien status, citizenship, or legal permanent residence, and yet need an SSN by law as a condition of receiving a federally funded benefit, may also gain a nonwork SSN. The SSA has said that it will not generally assign SSNs to aliens in the United States who are not authorized to work. As mentioned, SSA regulations do allow aliens to gain an SSN for nonwork purposes. SSA regulations do not define "nonwork purpose," however. The SSA has provided some guidance in the supplementary information of its regulations, stating that such needs include receiving a federally-funded benefit or enlisting in the armed services. Needing an SSN for a tax reason is no longer a valid nonwork purpose, however, since the Internal Revenue Service (IRS) instituted Individual Taxpayer Identification Numbers (ITINs) in 1996. The SSA eliminated in its regulations all references to tax reporting purposes as a valid nonwork reason for obtaining an SSN. See the discussion on ITINs below. A U.S. resident may apply for an SSN on behalf of a nonresident dependent only when the number is necessary for U.S. tax purposes or some other valid reason, certain evidentiary requirements are met, and the SSA determines that a personal interview is not necessary. Evidence Required to Establish SSN Eligibility The SSA requires certain evidence pertaining to age, U.S. citizenship or alien status, and true identity before it will issue an SSN.
All documents must be originals or certified copies of originals. The SSA will not issue an SSN to any person who presents invalid or expired documents. Applicants seeking to correct their card or obtain a duplicate social security card must also present the applicable aforementioned evidence. The SSA will presume that the alien has permission to work if the alien presents an I-94 card evidencing a classification that permits work. An alien who does not have an I-94 card or whose I-94 card does not reflect a work-authorized classification may still be issued an SSN card valid for work purposes. In that case, the alien must submit an INS document authorizing work. For example, an employment authorization document (EAD) can satisfy this requirement. Procedure by Which Social Security Number May be Obtained: Old and New Procedures The standard way for an alien to apply for an SSN is by completing Form SS-5 "Application for a Social Security Number Card" at any social security office and submitting the necessary evidence listed above. An alien abroad who has valid reasons to apply for an SSN may apply as well. However, a personal interview is required of aliens who apply overseas. An alien can obtain Form SS-5 at numerous locations, including local social security offices, offices of district directors of the Internal Revenue Service, and at the Social Security Administration, located at 300 N. Greene Street, Baltimore, MD 21201. Or an alien may call 1- 800-772-1213 (deaf and hard of hearing may call a TTY number at 1-800-325-0778), or visit the SSA website at The INS and the SSA have recently developed a new, simpler procedure to obtain an SSN. 1998 regulations authorized the SSA to assign SSNs to an alien who requests one as part of the immigration process. One transaction with the INS for both visa and SSN purposes eliminates the need for the alien to contact the SSA. In this case, a completed Form SS-5 is not required and the SSA gains the alien’s enumeration data from the Department of State (DOS) or the INS. The SSA will use INS and DOS data to establish age, identity, and the alien’s lawful alien status or authority to work. The DOS and INS are modifying their forms to collect this information. The SSA will send the social security card to the alien at the address the alien provides to the DOS or INS. If the alien is a refugee without a personal mailing address, the SSA will send the card to the sponsoring agency. An alien who requests a social security number through the visa process will not be required to have a personal interview.
This new method, a part of the "Federal Reinventing Government effort," seeks to eliminate the counterfeiting of INS documents to obtain an SSN. Until the 1998 regulations, SSA employees had to be familiar with a variety of INS documents. The potential for SSA employees to inadvertently accept inappropriate or counterfeit documents as evidence of legal or work-authorized status should be lessened by the INS transmitting enumeration information directly to the SSA. This would improve the integrity of the SSN assignment process.
If an alien needs a social security number for a nonwork purpose, the SSA will annotate the alien’s social security records and is supposed to notify the INS if subsequent employment is posted to that number.
At one time an undocumented alien who did not have an SSN could file an income tax return and write "SSA 205(c)" in the spaces for social security numbers. The IRS has stated that it will no longer accept "SSA 205(c)" on tax returns, however.
If an SSN card has been damaged or lost, a duplicate card can be issued if the alien completes and files a new SS-5 form.
Finally, as a part of the birth registration process, some newborn children can be assigned a SSN without their parent filing Form SS-5.
Individual Taxpayer Identification Numbers (ITINs)
On July 1, 1996, the IRS began assigning individual taxpayer identification numbers (ITINs) to aliens who are otherwise not eligible for SSNs but who need taxpayer identification numbers for tax purposes. In light of this IRS development, the SSA has stated that an alien’s assertion that he or she needs an SSN for tax reporting purposes is no longer a valid reason to obtain an SSN.
An ITIN is a tax processing number for certain nonresident and resident aliens, their spouses, and dependents. It should be used only for income tax purposes. ITINs do not:
An ITIN takes the form 000-00-0000 but begins with a "9."
An ITIN is only available to individuals who cannot obtain a social security number. An alien should apply for an ITIN on IRS Form W-7, Application for IRS Individual Taxpayer Identification Number. The alien must submit at least two identify documents, such as a passport, foreign voter registration card, birth or marriage certificate, or INS documents. One of the documents should contain a recent photograph. Documentation submitted with applications for ITINs for dependents must establish that the dependent lives in the United States, Mexico, or Canada. If the dependent is a minor, the evidence must establish the relationship between the dependent and the adult. The W-7 form may be obtained from an IRS office, a U.S. consular office abroad, or the IRS website <http://www.irs.gov>. It generally takes five to six weeks to receive an ITIN. Acceptance agents (including some colleges, financial institutions and accounting firms) are authorized by the IRS to assist aliens in obtaining ITINs.
Aliens who must file a U.S. tax return or who are listed on a tax return as a spouse or dependent and who do not have and cannot obtain a valid SSN must apply for an ITIN. The ITIN must be furnished on all tax returns, tax statements, and other tax-related documents. If a dependent SSN/ITIN is missing, any tax exemption will be denied. Aliens who have previously been assigned a temporary IRS number must now apply for an ITIN, since those numbers are no longer valid.
Aliens who need and can get an SSN should file Form SS-5 or otherwise apply for an SSN as part of the visa process. See discussion above.
Conclusion
We hope this article has shed some light on individual taxpayer identification numbers. Some aliens have valid claims to SSNs and should obtain them. For those who don’t, ITINs should suffice for most aliens with legitimate goals and purposes. The INS and SSA procedure for streamlining the SSN application process should lessen the confusion many aliens face when first arriving in the United States in a work classification. Aliens should note, however, that any time they change their immigration status, they must notify the IRS.
Stephen Yale-Loehr is co-author of Charles Gordon, Stanley Mailman & Stephen Yale- Loehr, Immigration Law and Procedure (ILP) (rev. ed. 1999). He also teaches immigration law at Cornell Law School, and is of counsel at True, Walsh & Miller in Ithaca, NY. He can be reached at syl@millermayer.com.
Rachel Valente graduated from Cornell University in 1998. She was a research assistant at Miller Mayer. She will attend Harvard Law School beginning in Fall 1999.
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