There are 5 major tax identification numbers used in the United States and they all have their peculiarities. Having them is mostly down to eligibility.
Not all immigrants are eligible to get a Social Security number as issued by the SSA for instance. As a result, they have to make do with an ITIN number that is issued by the IRA and not the SSA.
Other than the SSN (Social Security Number) and ITIN mentioned above, the others are EIN (Employer Identification Number), PTIN (Preparer Taxpayer Identification Number), and ATIN – which is for U.S. adoptions that are pending.
Considering that there are so many of them and so much to discuss because of their peculiarities, this article will focus on ITIN. However, we would pay particular attention to how certified acceptance agents can help you get this number and some other related subjects.
We advise especially those that are eligible for ITIN to keep reading. This is so that they can enjoy the benefits that come with having and using it.
Why You Need ITIN If You Are Eligible
We have briefly explained how not everyone is eligible for this tax identification number. With that in mind, some of the reasons why eligible people need it include the following:
Fulfilling Civic Duty by Paying Income Tax
Payment of income tax is the civic responsibility of every resident regardless of immigration status. Considering that you do not have a social security number for this purpose, ITIN allows you to perform this civic responsibility.
This number also helps with tax-related matters for eligible people. Getting due tax refunds and even tax credits that you qualify for is possible with this tax identification number.
Dealing with Financial Institutions
Your SSN would have been requested by the bank when opening an account if you had it. But your ITIN can serve the same purpose if you have it.
You should also know that these financial institutions cannot turn you down simply because you do not qualify for a social security number. Of course, this is as long as you have your ITIN.
Other than traditional financial institutions, online payment solutions are beginning to request some degree of identification from their clients/users. Some of them insist that you present your social security number before you can use their services. Well, this tax identification number is also relevant in such cases.
Filing for a Driver’s License
You should understand that the United States gives a lot of power to regional legislators. This is why state administrators and policymakers can determine a lot that goes on within their borders.
This is why the process of filing for a driver’s license is not the same all over the country. Some states allow immigrants without a social security number to apply for this license. This is as long as they have this tax identification number.
Kick-Starting the Process of Having a Credit Score
The process of obtaining a loan is not the same across the globe. Well, the United States makes good use of something called a credit score.
This is a rating by a government institution that analyses how credit-worthy you are. Having a good credit score means that you stand a better chance of getting loans.
One of the things that even help you have a credit score in the first place is a credit card. However, you need something in the class of an SSN to get a credit card if you do not have an SSN. This is because the credit card service provider will insist on this.
Well, the good news is that your ITIN is in the same class as your SSN and would be accepted for this reason. So, this is one reason why you may need to get it.
Proving Your Residency Status
Several situations might warrant the need to prove your residency status. You can make do with your ITIN if you are without an SSN. However, you might also need to use current tax returns in addition to this.
These are the basic reasons why people that are not eligible for SSN need to get this tax identification number. For more on this subject, you can watch this.
Using the Services of a Certified Acceptance Agent for ITIN Purposes
It is possible to file for your ITIN (if eligible) without the assistance of a certified acceptance agent. However, this is not advised considering how difficult or confusing the procedure can be along the line.
This is why you are advised to identify a certified and capable professional and work together. By so doing, you would at the very least:
- Save time
- Avoid mistakes
- Leverage on the professional’s experience and expertise
The truth is that success is guaranteed when you go through this process with the help of a certified and capable acceptance agent. This also means that you need to know how to identify the right acceptance agent for your ITIN needs.
Qualities of a Capable Acceptance Agent for ITIN Services
Some of the qualities expected of an acceptance agent that offers this service include the following:
Certified to Offer this Service
You cannot afford to take this for granted when searching for the ideal acceptance agent. The IRS is in charge of issuing and regulating ITIN.
This also includes certifying acceptance agents that can offer this service to people that need it. So, you should make sure your eventual choice is certified by the IRS.
Relevant Training
Like it or not, some incapable professionals have their way of ending up as IRS certified. So, you cannot rely on this alone. This is why you need to make sure the acceptance agent has some relevant training. Someone with a college or even Masters Degree in relevant fields such as Accounting, Taxation, and Finance will be better suited for this role.
The theoretical and practical training while obtaining this degree(s) is guaranteed to help them offer you a better service. So, you should not turn a blind eye to the acceptance agent’s professional training.
Relevant Experience
Identifying whether the acceptance agent is experienced is a step in the right direction but there is more to be concerned about. You need to make sure the experience is relevant and puts him/her in a better position to serve you well.
You should check the employment history of the acceptance agent for this reason. Someone that performed the duties of an appellate officer, credit analyst, tax examiner, revenue agent, and other relevant roles will be better suited.
You should also pay attention to the corporate organizations that the professional worked for before setting up shop as an acceptance agent. Professionals with proven history working with the U.S Treasury, Insurance corporations, and financial institutions at large will be better suited. The whole point is making sure the professional has relevant experience to meet your need.
Good Reviews
This is the true test of an acceptance agent that is up to the task. This is why you need to check credible review platforms and make sure the professional is well spoken of.
Wrap Up
Four important qualities of a capable acceptance agent for ITIN services have been mentioned above. These points are crucial but you can check out firptataxreturns.com/services/ for more on this subject.
But first, people eligible for ITIN need to see reasons why they should get this tax identification number. We have shed light on this and also discussed why working with a capable acceptance agent is better than going about this all alone.
This is why you are advised to work with these professionals and make sure they are capable. You should use the qualities discussed here as a yardstick for selecting your acceptance agent.