ITIN for Overseas Bank Accounts: A Complete Guide for 2025

An Individual Taxpayer Identification Number (ITIN) is a taxpayer identification number assigned by the Internal Revenue Service to individuals who cannot obtain a Social Security number but still have U.S. tax purposes. It lets taxpayers file a federal tax return, be listed as a spouse or dependent on a tax return, claim certain credits such as the child tax credit, and receive a refund when eligible. An ITIN helps the Internal Revenue Service (IRS) identify the person in its system and does not change immigration status or citizenship; it also supports tax treaty reporting when applicable.

To obtain an ITIN, an applicant completes Form W-7 as part of the ITIN application and submits documents that prove both foreign status and identity. You may apply by mail to the IRS ITIN Operation in Austin, TX; schedule an appointment at an IRS Taxpayer Assistance Center; or work with a Certified Acceptance Agent (CAA) who can verify a certified copy of a passport from the issuing authority or a State Department office. Before you submit, check whether an exception applies to your situation and ensure every record matches.

After review, the IRS assigns a number and returns your original documents. If the application is pending or you receive a notice, contact the IRS to verify the missing papers and avoid penalties or delays. Renew an expired ITIN before you file a return reporting income, and notify payers or banks once your number is active. For adoptions, use an ATIN when a child’s SSN is not yet authorized, then update records when the Social Security Administration issues the SSN.

Understanding the Individual Taxpayer Identification Number (ITIN)

An Individual Taxpayer Identification Number is a nine-digit number that the IRS issues to people who are not eligible for a Social Security number but still have U.S. tax purposes. It lets individuals file a federal tax return, appear on information returns, and claim certain credits when eligible. It does not authorize employment, provide Social Security benefits, or change immigration status.

• Eligibility summary: People ineligible for an SSN and who must file or be listed on a U.S. tax return often need an ITIN. Common situations include nonresidents with U.S.-source income, resident aliens without work authorization, students or scholars, and spouses or dependents claiming credits or a tax treaty benefit. The ITIN supports tax administration only and does not alter immigration status.
  
  
• Practical uses: Taxpayers use an ITIN to file a federal tax return, claim credits such as the child tax credit, and receive IRS notices under the correct number. Banks and payers use it to identify the person for information reporting and to verify identity under Customer Identification Program rules. Consistent names and dates across documents help prevent delays and notices.
  
  

Why ITINs Matter for Banking

Banks must verify identity and collect a taxpayer identification number under the Customer Identification Program. For applicants who do not have a Social Security number (SSN), an Individual Taxpayer Identification Number (ITIN) allows institutions to meet IRS reporting requirements when opening new accounts.

• Onboarding and reporting: A valid number helps the bank match account records to IRS forms and avoid mismatches. It supports tax reporting on interest or payments and keeps applications moving without holds.
  
  
• Avoiding delays: Using an active, correct ITIN reduces denials, extra documentation requests, and compliance notices. Consistent names, dates, and addresses across documents help banks verify identity quickly.
  
  

Who Needs an ITIN for Banking

Nonresident aliens with U.S. income or investments

A nonresident might need an ITIN to file a U.S. tax return for U.S.-source income and claim treaty benefits. They may receive rent, dividends, or interest that need IRS reporting. The ITIN enables refunds of over-withheld tax and access to information returns. Banks request it for Customer Identification Program checks and IRS reporting, ensuring a valid number for notices or account limits.

Resident aliens without SSN eligibility

Certain individuals satisfy the substantial presence test but do not possess a Social Security Number (SSN) due to their employment authorization. Submitting filings without an SSN may result in refund delays and potential mismatches; utilizing an Individual Taxpayer Identification Number (ITIN) assists the IRS in identifying the individual. Residents employ ITINs to report income, claim dependents, or assert treaty benefits, although it does not modify their immigration status.

Students and scholars (F-1, J-1, M-1)

International students or researchers not eligible for a Social Security Number (SSN) may need an Individual Taxpayer Identification Number (ITIN) to file taxes or be listed on a return. Some educational and financial institutions require a taxpayer ID for payments or account management. An ITIN can be used to submit forms and obtain tax documents. Applicants typically must provide a valid passport and program letters as proof of foreign status and identity; certified copies are accepted as substitutes.

Dependents and spouses of U.S. taxpayers

Spouses and dependents requiring an Individual Taxpayer Identification Number (ITIN) for joint or separate returns should compile identity and U.S. residency evidence. An ITIN facilitates the claim of credits such as the Child Tax Credit when eligible, and precise information assists the IRS in reconciling returns. Applying concurrently with the return expedites the review process and avoids the need for subsequent rework.

Eligibility and Exceptions

Filing requirement versus exception pathways

Some applicants apply with a tax return because they must file to report income, claim a refund, or document credits. Others qualify for an exception, allowing them to submit Form W-7 without attaching a return.

• How to decide: Review IRS exception categories to determine whether you can submit. If no exception applies, attach the federal tax return and any schedules.
  
  
• Why accuracy matters: Misstating the basis for application can lead to a CP566 suspense notice. Providing clear proof and complete documents reduces rejection risk.

When an SSN denial letter is required

Certain visa categories require you to apply for an SSN first and provide a denial letter if authorized.

• Who this affects: Individuals on work-authorized visa types or new permanent residents may need an SSN or proof of ineligibility first. Students without employment may submit program letters instead.
  
  
• Documentation tips: Keep the denial letter, appointment confirmations, and agency correspondence. These items help the IRS verify eligibility and shorten review time.
  
  

Documents and Forms Checklist

Form W-7 is the official application the Internal Revenue Service (IRS) uses to assign an Individual Taxpayer Identification Number (ITIN) to individuals who need it for tax purposes. When filling out the form, selecting the correct reason code is essential, as it indicates why you need the ITIN and clarifies whether you will be attaching a tax return or other documents. Properly completing this section helps ensure your application is processed smoothly and efficiently.

• What to include: Provide your legal name, foreign address, U.S. mailing address, birth details, and supporting identification. Align the reason code with your situation properly.
  
  
• Why precaution matters: Reason codes drive the evidence the IRS expects and how the application is routed. Accurate entries help avoid pending status and rejection.
  notarized identity and foreign-status documents
  
  

• Primary document: A valid passport can stand alone when it shows identity and foreign status. If unavailable, combine documents such as a national ID, birth certificate, and driver's license.
  
  
• Copies and certifications: A certified copy must come from the issuing authority rather than be routinely notarized. This distinction helps the IRS verify authenticity and prevents delays.
  
  

How to Apply for an ITIN (Step-by-Step)

Step 1: Apply by mail 

Mail your completed Form W-7, federal tax return if required, and original or certified copies of identification to the IRS ITIN Operation in Austin, TX. Use tracked delivery, include contact information, and keep copies of everything you submit. This method suits applicants who have certified copies from the issuing agency and do not require an appointment.

Step 2: Apply in person at an IRS Taxpayer Assistance Center

Schedule an appointment at a nearby IRS Taxpayer Assistance Center to have your documents reviewed and returned immediately. Bring your Form W-7, supporting documents that prove identity and foreign status, and your tax return if filing with the application. This option reduces mailing risk and helps resolve questions before processing.

Step 3: Apply through a Certified Acceptance Agent

Work with a Certified Acceptance Agent authorized to review your documents, complete a Certificate of Accuracy, and submit your application to the IRS. A CAA can often verify your passport without sending the original and help ensure entries match supporting records. This path is helpful when timing is tight or when you prefer a guided review.

Processing Times and Status

Standard versus peak-season times

Most complete application processes within several weeks, with longer timelines from mid-January through April when volume is highest.

• Verify before applying: File early when possible, especially if you don't submit a tax return by the deadline. Keep documents organized for quick responses.
  
  
• Why delays occur: Inconsistent names and unnecessary item documentation are common issues. Fixing avoidable errors helps the system move cases forward.

How to check the status

You can check the status by contacting the IRS after the initial processing window or following up with your CAA if you applied through one.

• Preventive steps: Before applying, verify that your passport or ID is valid and unexpired. Confirm that every attachment supports the claim you are making.
  
  
• If you get a notice: Read the letter carefully, gather the requested items, and respond by the deadline. Timely responses help avoid repeated suspense cycles.
  
  

Renewal and Expiration Rules

Non-use three-year rule

An Individual Taxpayer Identification Number (ITIN) expires at the end of the year if it has not been used on a federal tax return for three years. It is advisable to renew it promptly to avoid delays in refunds and notices of mismatch, enabling banks and payers to report under an active number. To initiate the renewal process, submit a new Form W-7 with the requisite identification documentation and attach a tax return or exception package as necessary.

Renewal steps and documentation

Renewal procedures utilize the same identity and foreign-status proofs required during the initial application process. Applicants are requested to submit current documents, verify their addresses, and ensure that all names are accurately matched.

Banking With an ITIN

Choosing ITIN-friendly banks

Some institutions are more experienced with applicants who use an ITIN, and that familiarity can reduce friction. Contact the bank to ask whether it accepts an ITIN instead of an SSN and what documents it will review. Compare branch support and account minimums. Many banks offer checking and savings accounts for ITIN holders and may allow debit cards immediately. Credit products can require additional review or longer relationships.

Documentation package banks request

Banks verify identity and address, and often request proof that supports your tax profile. If available, prepare your passport or certified copy, proof of address, and your ITIN assignment notice. If you are a student or dependent, include school or family records. Names, dates, and addresses should be the same across all documents and applications. Consistency helps banks match records and reduces manual review.

Common Problem Types

• CP566 (suspense): This notice means the IRS needs more information to verify identity, foreign status, or the reason code on your Form W-7. Send exactly what the letter requests—such as a certified copy of a passport or updated school records—and make sure names and dates match across all documents. Respond by the deadline to keep the application active.
  
  
• CP567 (rejection): A CP567 indicates your application was rejected, often due to expired or unacceptable documents, missing signatures, or an incorrect reason code. Fix the issues, replace documents with originals or certified copies from the issuing authority, and resubmit a complete package. A Certified Acceptance Agent can review for accuracy to prevent another rejection.
  
  
• Duplicate ITINs: Duplicate or misapplied numbers can result from multiple applications or record mismatches. Contact the IRS to consolidate records under the correct identifier and file amended returns if necessary. Notify banks and payers once the correction is made so that reporting aligns with the right number.
  
  
• Expired ITIN: An ITIN expires after three consecutive years of non-use or under certain scheduled expiration ranges. File a renewal Form W-7 before submitting your next federal tax return to avoid refund holds and mismatched reporting. Renew all affected dependents at the same time for consistent processing.
  
  

Certified Acceptance Agents (CAAs)

The CAAs review Form W-7 thoroughly, verifying all submitted documents to confirm the applicant's foreign status and identity. Once verified, they issue a Certificate of Accuracy, an official endorsement to ensure that the IRS can confidently trust and process the submission without issues.

• Scope of services: They may verify a passport via certified copy procedures, which helps applicants avoid sending originals by mail. They understand exceptions and treaty positions.
  
  
• Why applicants use CAAs: Working with a CAA reduces errors that trigger suspense or rejection notices, lowering the risk of a contact who understands the process fully.
  
  

Benefits for applicants

CAAs can inspect documents and attach certified copies when rules allow, reducing mailing risk and speeding review.

• Document handling: A CAA protects originals while ensuring proper verification. This reduces mailing risk when federal tax returns or exception packages are included.
  
  
• Accuracy and turnaround: Complete files with clear proof, correct reason codes, and consistent names move faster through the IRS system, lowering the odds of notices or refund delays.
  
  

Frequently Asked Questions

Can I open a U.S. bank account while my ITIN application is pending?

Some banks require a taxpayer identification number before onboarding, but others accept evidence that your ITIN application was submitted. Call ahead and ask about Customer Identification Program requirements and acceptable documents. Bring your passport, address proof, and Form W-7 mailing receipt or CAA letter. Clear records help the bank verify identity, reduce delays, and keep your application moving.

Do I need an SSN denial letter to get an ITIN?

Applicants in some work-authorized categories must first apply for an SSN and, if ineligible, include a denial letter with the ITIN application. Students or scholars without employment typically submit school program letters instead. Check your visa type and IRS rules before you file. The right evidence prevents a pending CP566 suspense and speeds the assignment of your taxpayer identification number.

How long does ITIN processing take?

Processing times vary by season and workload. Expect several weeks for complete applications, with longer windows from January through April. Reduce delays by submitting a complete Form W-7, using originals or certified copies from the issuing authority, and matching names across every document. Track your package and respond quickly to any IRS request to verify identity or provide additional proof.

What happens if my ITIN expires?

If your ITIN expires, the IRS may hold a refund or issue a notice until you renew. File a renewal Form W-7 before submitting your next federal tax return, or attach the renewal to that return when allowed. After reactivation, notify banks and payers so information returns match your active number and processing continues without avoidable delays.

Can spouses and dependents get ITINs?

Spouses and dependents not eligible for an SSN can apply for ITINs when listed on a return. When residency proof is required, provide current evidence such as school records, medical records for young children, or a lease and utility bills. Accurate, dated records verify eligibility and help the IRS match your family’s filing without unnecessary notices.

Can a Certified Acceptance Agent submit my ITIN without my original passport?

A Certified Acceptance Agent can verify a passport and attach a certified copy when program rules allow, so you do not have to mail the original. The agent also confirms the correct reason code and exception evidence, if any. Using a CAA improves accuracy, avoids CP566 suspense or CP567 rejections, and helps you receive your assigned number sooner.