What Is the Cost of ITIN Number: Complete Guide to ITIN Pricing
Every year, hundreds of thousands of foreign nationals look for the best ways to apply for an ITIN number in the US. The reasons for needing/wanting an ITIN can greatly vary, depending on each specific situation. However, one thing is for certain: most of them are interested in the price of ITIN and start their search with a single question — how much does it cost to get an ITIN number?
In this article, we’ll explain the ITIN application cost and provide you with some basic information on how to get one. But, before we start, let’s briefly review what ITIN is.
What is ITIN?
ITIN, or Individual Taxpayer Identification Number, is a numerical sequence that the US Internal Revenue Service issues to all individuals who are obligated to pay US taxes but are not eligible to get a Social Security Number, including:
- Legal nonresidents who spent enough time in the US to pass the Substantial Presence Test
- Legal nonresidents who live or own a business in the US
- Resident aliens
- All dependents of either nonresident or resident aliens
- All foreign nationals who are obligated to file tax forms in the US
The ITIN has 9 digits and always starts with the number “9,” making it easily discernible from SSNs. This tax-processing number has been in use since 1996 as a primary way to ensure that both documented and undocumented immigrants pay their fair share in taxes to the US economy.
With ITIN, foreigners can get access to many financial and other benefits. Some of them are:
- The ability to open a US bank account and a US Paypall account
- Claim dependants to lower taxes
- Apply for and get a US mortgage loan
- Build credit history in the US
- Stay in full compliance with US federal tax laws and file the 1040-NR form
Now, with that small info dump out of the way, let’s move on to the “meat and potatoes” of this article:
How Much Does It Cost to Get an ITIN Number?
The good news is that the ITIN application fee is — effectively zero dollars. The IRS does not charge you for submitting an ITIN number application. However, as with anything in life that’s effectively free, there are certain hidden costs that can creep up:
High Rejection Rate
As we’ve mentioned, the ITIN number cost is $0. The IRS doesn’t charge you anything — yes, that’s a fact — but they also don’t make it easy to fill out the ITIN application. Some would argue they do the exact opposite. For example, in 2013, the IRS changed the rules of how applying for ITIN works, which led to a 50% rejection rate for ITIN numbers during said year.
The situation isn’t as bad now, but many people still get rejected for one reason or another. If you add to that processing times between 7 and 11 weeks, every rejected application can prolong the time to get an ITIN by an additional 2 to 3 months. This can cause further stress, lead to being late with tax filing, and a myriad of other issues.
We can help you get an ITIN on your first try. For a fee of $400, we’ll make sure your application is filled out according to the latest US laws and IRS regulations, ensuring you get your ITIN number the first time you apply.
Limited Options for Applying
There are three ways you can apply for ITIN, two of which are absolutely free.
1. ITIN Application Fee $0: Applying in Person
Applying for an ITIN in person by visiting an IRS Taxpayer Assistance Center in the US is absolutely free. The only cost you’ll incur is your time, which shouldn’t be a big problem if you live in the US. Remember to prepare all the necessary documentation (e.g., your passport, correctly filled W-7 form, etc) before you visit the IRS center and apply for an ITIN.
However, if you don’t reside in the States, things will work a little differently and will be a bit more complicated. The IRS still won’t charge you, but instead of visiting an IRS center in the US, you’ll have to apply for ITIN via regular mail.
The processing times for an ITIN application submitted in person are between 7 and 11 weeks.
2. ITIN Application Fee $0: Applying via Regular Mail
The second free-of-charge way of applying for ITIN is by sending your application through regular mail to the United States Internal Revenue Service. The address to which you should send your ITIN application is:
Internal Revenue Service. ITIN Operation. P.O. Box 149342. Austin TX 78714-9342
The mailing time (i.e., how long it takes for your application to get to the IRS) can impact the overall processing times, making this way of applying for ITIN take a bit longer than the first one. You have to take into account the mailing time and IRS processing times, meaning that if it takes one week for your application to get to the IRS, then the whole process will take longer — between 8 to 12 weeks (instead of 7 to 11 weeks). This can be further exacerbated if your ITIN application gets lost in the mail, which happens from time to time and can cause even more delays.
Additionally, you’ll have to prepare documents that prove your identity, either original or certified copies. Depending on your country of residence, you might have to get your identification documents approved by the US embassy, which can further complicate the whole process.
3. ITIN Application Fee $400: Applying via Certified Acceptance Agent
A certified acceptance agent or agency is an IRS-authorized entity that helps foreigners apply and receive an ITIN number. These agencies do charge a fee for their services, making this way of applying for ITIN not free. But, as with everything in life, when something is not free, there is a certain value attached to it. And in this case, the value of using a certified acceptance agent for an ITIN application is:
- Faster processing times
- The whole process can be done online (no need to visit the IRS in person or deal with regular mail carriers)
- The chances of getting rejected are virtually zero (as long as you provide the agent with accurate information and you have no serious legal issues, your ITIN application will always get accepted)
- The acceptance agent will verify your identity using the documents you’ve provided, eliminating the extra paperwork involved in getting those documents certified by the US embassy or your home country’s institutions.
We work directly with an acceptance agency and can help you get your ITIN number fast and for only $400. Book a free call to learn more!
Need Help Getting an ITIN Number? NRI Can Help
Why spend a lot of time figuring out all the latest IRS rules for yourself when you can spend a little bit of money and have someone else do it for you?
NRI is an agency that helps foreigners get an ITIN number in the US. For a fee of $400, our team will ensure that your ITIN application process is completed according to the latest IRS rules and guidelines.
Apart from helping nonresident clients get an ITIN number, NRI also offers general tax counseling, tax filing services, and LLC formation services in the US. We charge a fixed fee of $1500 for the Complete US LLC service. If you want to learn more about our services, we invite you to book a free consultation call with our founder, Luka Malkovich.
