Tax Identification Guide
If you are a non-U.S. resident earning income from the United States, owning a U.S. business, or required to file a U.S. tax return, understanding who needs an ITIN is essential to stay compliant with IRS regulations.
Many people assume ITINs are optional — but in reality, not having one when required can lead to IRS notices, penalties, or delayed refunds.
What Is an ITIN?
An Individual Taxpayer Identification Number (ITIN) is a 9-digit tax processing number issued by the IRS to individuals who are not eligible for a Social Security Number (SSN) but are required to file U.S. taxes.
👉 ITINs are strictly for tax purposes.
👉 They do not authorize work and do not provide immigration benefits.
Who Needs an ITIN?
You may need an ITIN if you fall into any of the following categories:
Non-U.S. Residents With U.S. Source Income
If you earn income from the U.S., such as:
- Freelance or consulting income from U.S. clients
- Rental income from U.S. property
- Royalties, commissions, or investment income
You are required to report that income — and an ITIN is mandatory.
Foreign Owners of U.S. LLCs
If you own a U.S. LLC and:
- You are a non-resident
- You do not qualify for an SSN
- Your LLC has income or even zero income
You still have IRS filing obligations, and an ITIN is required to complete them.
Amazon, Shopify & Online Sellers
Online sellers earning U.S. income often need an ITIN to:
- File U.S. tax returns
- Maintain IRS compliance
- Work with payment processors and marketplaces
This is especially common for Amazon FBA, Shopify, and Stripe users.
Dependents or Spouses on a U.S. Tax Return
If you are:
- A spouse of a U.S. taxpayer
- A dependent being claimed on a U.S. return
- Not eligible for an SSN
An ITIN is required to be included in the tax filing.
Individuals Claiming Refunds or Tax Benefits
If U.S. taxes were withheld from your income and you want to:
- Claim a refund
- Apply treaty benefits
- File required IRS forms
You must have an ITIN to proceed.
Who Does NOT Need an ITIN?
You do not need an ITIN if:
- You are eligible for a Social Security Number
- You have no U.S. tax filing requirement
- You do not earn or report U.S. source income
Common Reasons People Apply for an ITIN
| Reason | Purpose |
| Tax Filing | Required to file Form 1040-NR |
| Business Compliance | Needed for LLC & partnership filings |
| Refund Claims | To recover withheld taxes |
| IRS Compliance | Avoid penalties and notices |
| Banking & Platforms | Often requested for verification |
ITIN vs SSN (Quick Comparison)
| Feature | ITIN | SSN |
| Issued By | IRS | Social Security Administration |
| Purpose | Tax filing only | Work & benefits |
| Work Authorization | ❌ No | ✅ Yes |
| Eligibility | Non-residents | U.S. citizens & residents |
| Format | 9 digits (starts with 9) | 9 digits |
Important Things to Know
- An ITIN does not give legal status
- It does not allow employment
- It is required only for tax compliance
- Applying incorrectly can cause IRS rejection or delays
Need Help Applying for an ITIN?
At Be Filing, we provide complete ITIN application services for non-U.S. residents, business owners, and online sellers.
Why Choose Be Filing?
- ✔ IRS-Certified Acceptance Agents (CAA)
- ✔ No need to mail your original passport
- ✔ Accurate & secure processing
- ✔ Expert guidance from start to finish
Key Takeaway
If you are not eligible for an SSN but are required to file U.S. taxes or report U.S. income, an ITIN is not optional — it is required. Applying correctly the first time saves time, money, and unnecessary IRS issues.