The IRS says “[t]he ITIN is for federal tax purposes only.” This doesn’t actually mean you can’t use it for anything else, but it does mean that you need to demonstrate a federal tax purpose when applying or renewing. In other words, you can’t get an ITIN just to open a bank account.
The most common method (and easiest) is to submit your ITIN application attached to a federal tax return (form 1040 for US citizens and residents, or 1040NR for nonresident aliens), with the SSN/ITIN field(s) blank. (If you’re applying for a dependent, like a child or parent, the tax return also must claim that person for an allowable tax benefit – claiming them has to make a difference in the amount of taxes you owe.
Cases in which you may need to (or be able to) file a US tax return include:
If you are married to a U.S. citizen or resident
If you had income in the US, including e.g. from working remotely for a foreign employer or client while you were on vacation in the US
If you had gambling winnings from a US casino
If you don’t need to file a federal tax return, you can still obtain an ITIN if you meet one of the following exceptions:
Passive income—third-party withholding or tax treaty benefits. Income from a partnership, interest, annuities, rental income, or other passive income that are subject to third-party withholding or benefits of a tax treaty.
Other income. This may apply if you:
Are claiming benefits under a tax treaty between your country and the US, and you receive any of the following:
Wages, salary, compensation, and honoraria payments;
Scholarships, fellowships, and grants; and/or
Gambling income, or
You’re receiving taxable scholarship, fellowship, or grant income, but not claiming the benefits of an income tax treaty.
Mortgage interest—third-party reporting. This exception may apply if you have a home mortgage loan on real property you own in the United States that’s subject to third-party reporting of mortgage interest.
Dispositions by a foreign person of U.S. real property interest—third-party withholding. This exception may apply if you’re a party to a disposition of a U.S. real property interest by a foreign person, which is generally subject to withholding by the transferee or buyer (withholding agent). This exception may also apply if you have a notice of non-recognition under Regulations section 1.1445-2(d)(2).
Treasury Decision (T.D.) 9363. This exception may apply if you have an IRS reporting requirement as a non-U.S. representative of a foreign corporation who needs to obtain an ITIN for the purpose of meeting their e-filing requirement under T.D. 9363.
In any of these cases, you must provide written documentation to verify your eligibility. Typically this is a copy of official documents (for example, an operating agreement for a partnership/corporation/LLC) or an original signed letter from the corporation, bank, or other entity that requires your ITIN. For details on acceptable documentation, see the Form W-7 instructions.
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