Main Uses of an ITIN
An ITIN (Individual Taxpayer Identification Number) is a tax identification number issued by the U.S. Internal Revenue Service (IRS).
It is primarily used by non-U.S. residents who need to handle tax, financial, and compliance matters in the United States.
1. ITIN Is the Core Tax ID for Non-U.S. Residents Filing U.S. Taxes
If a non-U.S. resident earns income from U.S. sources, an ITIN is required to file a U.S. tax return.
Without an ITIN, the individual may face high mandatory withholding taxes.
Common situations where an ITIN is required include:
📈 Investment Income
Trading stocks through U.S. brokerages
ETFs, dividends, and other investment returns
🏠 Real Estate Income
Selling U.S. real estate
Rental income from U.S. properties
💻 Freelance & Platform Income
Income from platforms such as Upwork, Fiverr, Amazon, Shopify, TikTok, or independent websites
Software development, design, consulting, cross-border e-commerce, and other self-employed income
👉 Without an ITIN:
Income is typically subject to a flat 30% withholding tax
Refunds are difficult or impossible to claim
👉 With an ITIN:
Income can be legally reported
Taxes are calculated at the actual applicable tax rate
Overpaid taxes can be refunded
2. ITIN Is Required for Stripe, PayPal, and Other Payment Processors
For non-U.S. residents, an ITIN is often a required tax identifier when applying for or using U.S. payment processors, including:
Stripe
PayPal
Shopify Payments
Amazon, Etsy, and independent-site payment systems
These platforms are required to report tax information to the IRS, and
👉 the ITIN is the compliant tax ID available to non-U.S. residents.
Without an ITIN, you may face:
Incomplete or failed account verification
Account restrictions or freezes
High withholding on received payments
3. ITIN Can Be Used for U.S. Banking and Remote Financial Applications
In real-world practice, an ITIN can also be used for:
Tax compliance when opening U.S. bank accounts
Remote applications for certain U.S. credit cards
Example:
Capital One credit cards
Accept ITINs instead of SSNs
Allow online / remote applications (approval depends on bank risk review)
In addition, some U.S. banks and financial institutions:
Allow ITIN in place of an SSN
Offer remote applications depending on the product and applicant profile
👉 General principle:
Having an ITIN = having compliant access to the U.S. financial system
4. The Role of ITIN in Single-Member LLC Tax Filing
For non-U.S. residents who:
Own a Single-Member LLC
And whose company income must be reported together with personal income
👉 In this case:
Personal and business income are filed together
A personal ITIN is mandatory for tax filing
Without an ITIN, compliant filing is not possible
This is one of the main reasons ITINs are in high demand among:
Cross-border e-commerce sellers
Independent website owners
Freelancers and consultants
5. ITIN Processing Time, Status, and Application Flow
1️⃣ Realistic ITIN Processing Timeline (Important)
ITIN processing time is entirely determined by the IRS, not by the application service provider.
In recent years, multiple external factors have significantly slowed processing.
Timeline changes:
Before IRS staffing reductions
ITINs could be issued in as little as ~24 days
After IRS workforce reductions
Processing time increased to ~60 days
After the 43-day U.S. government shutdown
Average issuance time extended to ~78 days
Current practical timeline:
ITIN number issuance: ~78 days
IRS confirmation letter received at our U.S. address: ~87 days
📌 Because we use a U.S. domestic receiving address, delivery is more stable and faster than international mail.
2️⃣ Delivery After ITIN Is Issued
Once the IRS confirmation letter arrives at our U.S. address
We immediately scan the official notice
Provide the high-resolution digital copy to the client
Clients do not need to wait for international postal delivery
3️⃣ Transparent ITIN Application Process
Step 1: Client Submits Required Information
Clients provide:
✅ A clear, IRS-compliant passport scan
✅ A complete residential (home) address
✅ Any additional information required by the IRS
Step 2: We Prepare IRS Documentation
We handle:
✍️ Completion of Form W-7
📄 Preparation of passport review certification documents
📑 Assembly of all supporting materials required by the IRS
Clients do not need to complete complex tax forms themselves.
Step 3: Submission to the IRS
Documents are mailed to the IRS ITIN Processing Center
Mailing time: 3–5 business days (up to 5–7 in special cases)
📦 After mailing:
Clients receive an international tracking number
The process is fully traceable and verifiable
4️⃣ ITIN Application Status Tracking (Form W-7)
https://www.irs.gov/help/processing-status-for-tax-forms
After the IRS receives the application:
Clients may check status through the official IRS W-7 tracking channel
⚠️ Please note:
The system typically shows only the most recent ~30 days of status
Earlier stages often show limited or no detail
👉 We also assist clients by interpreting progress based on practical experience.
One-Sentence Summary (Client-Friendly)
An ITIN is the foundation for tax filing, payments, banking, and compliance for non-U.S. residents in the United States. While IRS processing currently takes around 78 days, we ensure faster usability by receiving the notice domestically and delivering scanned confirmation promptly.