Received Both ITIN and SSN: Which to Use for Tax Filing?

Question from Nlv, Received Both ITIN and SSN: Which to Use for Tax Filing?

Answer from AI:

When you find yourself in possession of both an Individual Taxpayer Identification Number (ITIN) and a Social Security Number (SSN), it’s important to understand which one to use for tax filing purposes and how to notify the Internal Revenue Service (IRS) of this change. The distinction between these two numbers is significant for tax reporting and compliance within the United States.

Which Number to Use for Tax Filing?

Always use your SSN for tax filing if you have one. The SSN is not only a requirement for employment in the U.S. but also serves as your primary taxpayer identification number if you are eligible for it. The IRS issues ITINs to individuals who are required to have a U.S. taxpayer identification number but who do not have, and are not eligible to obtain, an SSN from the Social Security Administration (SSA).

Notifying the IRS About Your SSN

Once you receive your SSN, it is crucial to inform the IRS that you will be using your SSN for all future tax filings and to discontinue the use of your ITIN. Here are the steps to properly notify the IRS:

1. File your tax return using your SSN. When you file your next tax return, make sure to use your SSN. This is the most straightforward way to inform the IRS that you have an SSN and will be using it for tax purposes.
2. Send a written request to the IRS. To rescind your ITIN, you should send a letter to the IRS ITIN Operation. In the letter, include your full name, ITIN, and SSN, and state that you have now obtained an SSN and wish to rescind your ITIN. It’s also helpful to include a copy of your Social Security card and a federal tax return that reflects your SSN.
3. Contact the IRS directly. If you have questions or need assistance, you can also contact the IRS directly by phone. However, be prepared for potential wait times.

Why It’s Important to Use Your SSN

Using your SSN for tax purposes, once obtained, is important for several reasons:

• It helps ensure that your tax records are accurately consolidated under one identifier.
• It may make you eligible for social security benefits and other government services.
• It avoids the potential confusion and delays in tax processing that might arise from using multiple taxpayer identification numbers.

Additional Considerations

If you have used your ITIN for any financial accounts or other purposes, you should update those accounts with your SSN to ensure continuity and compliance. This includes notifying employers, banks, and any other institutions that may have your ITIN on file.

Conclusion

In summary, once you receive an SSN, it should be used for all tax filings moving forward, and you should notify the IRS of this change by filing your tax return with your SSN and sending a written request to rescind your ITIN. This process is crucial for maintaining accurate tax records and ensuring compliance with U.S. tax laws.

For personalized advice or if you encounter specific issues, consulting with a tax professional or legal advisor is recommended. They can provide guidance tailored to your situation and help navigate the complexities of tax law and IRS procedures.

For more information on ITINs and how to rescind them, you can visit the IRS’s ITIN information page.