The Internal Revenue Service is a government agency designed to collect monies from taxpayers across the country. With such a large organization, it is no surprise that there are a few shocking truths about the agency. If you are in the process of getting assigned an IRS ITIN, you may find the following truths about the IRS particularly shocking.
- Created ITIN Program in 1996
Not all taxpayers are United States citizens. The IRS created the ITIN program to help those who do not qualify for a social security number. The ITIN makes it easier for this group of people to pay in their taxes. The IRS can now track their taxes, which can help them become permanent residents and prove employment history.
- Set Up Income Tax System in 1913
American citizens were not always required to pay income taxes. This type of tax came in and out of existence over the early years of the country’s history. The system used today was put in place by the IRS in 1913, but the rates were much lower than they are today.
- Updated ITIN Program
Like with many other parts of the tax system, the IRS sometimes does updates to the ITIN program. Updates may require individuals with an ITIN to renew their number by filling out another IRS form W7. With this need for renewal, many individuals have to send in a copy of the W7 form along with an original identification document.
- Had Backlog of Applicants
Many people in the United States want to apply for an ITIN each year. Because of the change in application requirements and a lack of staffing, thousands of taxpayers receive their ITIN after the tax deadline has passed. This backlog of applicants can lead to piles of tax returns with no identification number. In some cases, taxpayers may decide to stop paying their taxes because of the difficulty of applying for an ITIN.
You can make filing a W7 form easier by filling it out online. Use a simple online form, document checklist and filing instructions to make sure you properly apply for your ITIN.
