ITIN: Individual Taxpayer Identification Number Definition
What is an ITIN? Learn who needs an Individual Taxpayer Identification Number and why you might not need one for US banking in 2026.
Definition
An Individual Taxpayer Identification Number (ITIN) is a 9-digit tax processing number issued by the IRS to:
- Foreign nationals who have US tax filing requirements but cannot get a Social Security Number (SSN)
- Nonresident aliens (NRAs) with US-sourced income
- Dependents or spouses of US persons
ITIN format: 9XX-XX-XXXX (same structure as SSN)
Who Needs an ITIN
You need an ITIN if:
- Nonresident alien with US LLC income: You file Form 1040-NR to report US-sourced income.
- Dependent or spouse of US person: You are claimed as a dependent on a US tax return.
- You have US-sourced interest/dividends: Banks report to the IRS, which requires a tax ID.
ITIN vs SSN vs EIN
| ID | Who It’s For | Used By | Format |
|---|---|---|---|
| SSN | US citizens and residents | Personal taxes, employment | XXX-XX-XXXX |
| ITIN | Nonresident aliens | Personal tax returns | 9XX-XX-XXXX |
| EIN | Businesses | Business taxes, bank accounts | XX-XXXXXXX |
How to Apply for an ITIN
Step 1: Complete Form W-7
The IRS Form W-7 requires:
- Reason for needing ITIN
- Proof of identity (passport, driver’s license, national ID)
- Proof of foreign status (visa, passport with entry stamps)
Step 2: Submit to IRS
Options:
- Mail: Send W-7 with original or certified identity documents.
- Acceptance Agent: A CPA, attorney, or enrolled agent can verify documents.
- CAIRS: Use the Computer Assisted Intake System at IRS walk-in centers.
Processing time: 6-10 weeks
Critical Update 2026: No ITIN Needed for Banking
You no longer need an ITIN to open US business bank accounts.
In June 2025, the OCC, FDIC, and NCUA introduced a Customer Identification Program (CIP) exemption allowing banks to verify identity using approved third-party digital systems instead of requiring ITIN or SSN.
For non-US founders, this means:
- EIN + valid foreign passport = sufficient to open US business bank accounts
- Mercury, Relay, and other neo-banks accept non-residents remotely
- No ITIN required for LLC banking
Common Mistakes
- Assuming ITIN is needed for banking: As of 2026, an EIN alone is sufficient.
- Letting ITIN expire: ITINs expire on December 31; ensure you renew before the filing season.
- Using ITIN as responsible party on SS-4: Nonresident aliens cannot use an ITIN as the “responsible party” for EIN applications in some cases.
Related Terms
- EIN: Employer Identification Number, used for business banking.
- Form 5472: IRS informational return for foreign-owned LLCs.
- KYC: Know Your Customer requirements for US financial access.
This is a dictionary entry. For full banking guide, see Open US Business Bank Account Without ITIN