If you are an individual living in the US, you can either have an Individual Tax Identification Number, or a Social Security Number. As per the US laws, you cannot hold both, the ITIN tax number and the SSN, simultaneously. If you are an ITIN tax number holder, you can apply for a Social Security Number, for example after getting an EAD. Once you have your SSN in hand, the important thing to consider is: What to do with your old ITIN tax number?
Obviously, the right way forward is to get rid of your old ITIN tax number. But it is not as easy as it sounds. People find it hard to find the right way of doing it. Even if they do get it done, there are a host of other considerations that have to be accounted for when switching to a new SSN.
This article provides you with some useful tips on how to rescind your ITIN tax number. It also attempts to offer tips on how to stay clear of some sticky issues that make it hard for people to make the switch to an SSN.
Notify Internal Revenue Service
The very first thing that you need to do when you obtain your Social Security Number is to notify the Internal Revenue Service. If you had an ITIN tax number before, inform the IRS about it, and place a request for rescinding your ITIN tax number. The right way of doing this is to send a request letter to the IRS ITIN Unit for rescinding of ITIN tax number.
On the acknowledgement of the letter, the Internal Revenue Service would make your old ITIN tax number void. All prior information that pertains to your ITIN tax number would be associated with your new SSN, which will henceforth become the primary number for all your future filing purposes. The IRS would then send a confirmation letter, acknowledging revocation of your ITIN tax number.
Tackle Your Credit
If you have a credit history on your ITIN tax number, you might want it to be transferred to your new SSN. In some cases, individuals should actually avoid doing this. For instance, if the individual has a bad credit history, he or she might want to start fresh with the new SSN.
In other cases, the credit history can easily be transferred to the SSN. Since the credit history is not maintained by the Social Security Administration, the individual needs to provide personal credit claims to the credit bureaus. This would notify the bureaus to report future credit under the new number.
Transfer Past Earnings
You can transfer past earnings on to the new SSN by contacting the Social Security Administration. Submit the previous W-2 forms along with tax returns, and within a month your earnings will be transferred under the new number.
Don’t Forget Your Banks
It is important for you to notify your banks and credit lenders of your new SSN. This would help them in conducting your future transactions under the new number rather than the old ITIN tax number Schools, credit card, memberships and other important institutions should be duly informed to prevent problems in processing of any of your claims in the future.
If you want to apply for an, Individual Taxpayer Identification Number, or ITIN tax number and have any other questions, please feel free to contact us at 888-509-3616. If you have any suggestions please share those with us as well. Freedomtax ITIN Number has a professional team of IRS Certifying Acceptance Agents, and tax accounting professionals with more than 16 years of experience, helping immigrants with their ITIN application. Freedomtax can also help immigrant entrepreneurs incorporate a business in the USA. Freedomtax ITIN Tax Number Online services provides Quality, Professional Service with a Family Feel.