The Role of ITINs in the U.S. Tax Filing System

An ITIN (Individual Taxpayer Identification Number) is how the IRS makes sure that non-citizens and others without a Social Security Number can still report income and pay taxes legally.

At Velin & Associates, Inc., we help a wide range of clients — from YouTubers, Shopify store owners, and Amazon sellers to TikTokers, filmmakers, doctors, dentists, tradespeople, and other local business owners — understand how to stay compliant when they or their family members don’t qualify for a Social Security Number.

What is an ITIN Used For?

An ITIN is issued by the IRS for federal tax purposes only. It allows individuals who can’t get an SSN to:
✔️ File a U.S. tax return
✔️ Report income and pay any required taxes
✔️ Claim certain tax credits they’re eligible for (like the Child Tax Credit, if other conditions are met)
✔️ Meet IRS requirements when they have U.S. source income

But an ITIN does not:
❌ Qualify you for Social Security benefits
❌ Make you eligible for the Earned Income Tax Credit (EITC)
❌ Provide or change your immigration status
❌ Authorize you to work legally in the U.S.
❌ Serve as official ID outside the tax system

In short: The ITIN is only for filing taxes. It does not replace an SSN for other purposes.

1) Who Qualifies for an ITIN?

A taxpayer needs an ITIN if they:

• Can’t get an SSN

• Have a U.S. tax filing requirement

Examples:
✔️ A YouTuber or Amazon seller living abroad earning U.S. income
✔️ A foreign investor with U.S. rental or royalty income
✔️ A nonresident spouse or dependent of a U.S. taxpayer
✔️ Some international students with taxable scholarships or grants

This is why many CPA for YouTubers, CPA for Online Commerce, or CPA for Amazon Business clients rely on us for clear advice about whether they truly need an ITIN.

2) How Tax Law Changes Affect ITIN Holders

Since the Tax Cuts and Jobs Act (TCJA), ITIN holders have seen important changes:

• Unused ITINs expire after three years of no tax filings.

• Expired ITINs can delay your refund until you renew.

• The TCJA eliminated personal exemptions but credits like the Child Tax Credit can still apply — this can affect many families who work with a CPA for Dental Practice or CPA for TikTokers to file correctly.

3) ITIN Issuing & Renewal Process Under the TCJA

Here’s how the rules work now:
✔️ If your ITIN was issued before 2013, it probably needed renewal by now.
✔️ If you haven’t used your ITIN on a tax return for three straight years, it’s expired.
✔️ Renewal or first-time applications both require Form W-7, proper ID, and documentation.

Our clients — whether they’re Shopify store owners, Amazon sellers, or dental professionals — rely on us to prepare these filings accurately so they don’t run into avoidable delays with the IRS.

4) How to Avoid Common Mistakes on Form W-7

Form W-7 is the application for an ITIN. Mistakes here are common and can cause delays or IRS rejections.

Top tips to avoid problems:
✔️ Use the latest version of Form W-7
✔️ Include all required supporting documents — proof of identity & foreign status (like a valid passport, birth certificate, or national ID)
✔️ If you’re claiming a dependent, include documents showing U.S. residency for certain credits (like school records, medical records, or rental lease)
✔️ Send original documents or certified copies from the issuing agency — the IRS does not accept ordinary photocopies
✔️ Sign and date the form correctly — and mail it to the correct IRS address
✔️ Consider working with a Certified Acceptance Agent (CAA) or a qualified CPA firm (like Velin & Associates, Inc.) to ensure everything is correct the first time.

Bottom Line

👉 An ITIN is not a work permit — it’s just for taxes.
👉 If you earn U.S. income but can’t get an SSN, you need an ITIN to stay compliant.
👉 If your ITIN expires or your W-7 is done incorrectly, you risk delays and penalties.
👉 A good tax advisor can handle it for you, properly and on time.

At Velin & Associates, Inc., we help nonresident taxpayers, foreign investors, freelancers, and small business owners apply for or renew ITINs correctly — so you avoid costly mistakes and stay compliant with IRS rules.

For more information about our services, please visit our website.

Velin & Associates, Inc

8159 Santa Monica Blvd STE 198/200 West Hollywood, CA 90046
323-902-1000
dmitriy@losangelescpa.org