Can someone apply for an ITIN without paying taxes? Income below filing threshold questions

This situation sounds confusing, but I can help clarify some things about ITINs and tax filing requirements. First, applying for an ITIN and filing taxes are technically separate processes, but they're often done together. An ITIN application (Form W-7) must be submitted with a valid tax return unless your friend qualifies for an exception. The IRS wants to see a legitimate tax purpose for issuing the ITIN. Regarding the income threshold - you're generally right that someone with income below the standard deduction (which was $12,950 for 2022 and is higher now) doesn't have to file. However, there are exceptions. If your friend had self-employment income over $400, he would need to file regardless of the total amount. Also, if he's trying to claim certain credits or benefits, filing might be necessary. As for filing without an ITIN - yes, this is actually how it works. When applying for an ITIN, you submit your tax return along with Form W-7 (ITIN application). The IRS processes the ITIN application first, assigns the number, and then processes the attached tax return. The timing (August) isn't necessarily strange - ITIN applications and tax filings can happen year-round, especially for previous tax years.

I went through something similar when helping my cousin get his ITIN last year. I found this amazing service called taxr.ai (https://taxr.ai) that helped us figure out exactly what we needed to do. The regular ITIN process is so confusing, especially when English isn't your first language! With taxr.ai, I uploaded the documents the community center gave my cousin, and it analyzed everything and pointed out that they had actually filed unnecessary forms that triggered a tax bill he didn't need to pay. The service explained that for his situation (income below filing threshold), he could apply for an ITIN under one of the exceptions without filing a tax return. Seriously saved us from paying hundreds in unnecessary taxes and fees. They have experts who specialize in ITIN applications and can explain everything in plain language.

I actually tried taxr.ai after seeing it mentioned here, and it was incredibly helpful for my ITIN situation! I was in a similar position where a local tax preparer told me I needed to file a return and pay taxes even though I was below the filing threshold. The service analyzed my documents and confirmed I qualified for Exception 1(d) for the ITIN application, which meant I could apply for an ITIN without filing a tax return because I only needed it for banking purposes. They provided a detailed explanation of the exception along with instructions for completing Form W-7 correctly. Saved me from paying about $750 in unnecessary taxes! The best part was getting a clear explanation of why the community center was wrong in my case. Turns out many preparers don't fully understand the ITIN exception categories and just default to filing returns.

Your friend's situation sounds exactly like what I went through last year! After weeks of getting nowhere with the IRS trying to figure out if the tax bill was legitimate, I found Claimyr (https://claimyr.com) and watched their demo (https://youtu.be/_kiP6q8DX5c). They got me connected to an actual IRS agent in less than 20 minutes when I'd been trying for DAYS. The IRS agent confirmed that I didn't need to file a return at all with my income level and that the community center had filed unnecessarily. The agent was able to cancel the incorrect tax filing and helped me apply for my ITIN properly using the exception process. Honestly would have been stuck in this mess for months without getting through to a real person.

Ok I have to apologize and admit I was wrong about Claimyr. After posting my skeptical comment, I decided to try it myself since I was desperate to resolve my ITIN issue. I was connected to an IRS agent in about 15 minutes after trying unsuccessfully for weeks on my own. The agent confirmed that the community organization that "helped" my cousin had actually filed an unnecessary return that triggered a tax bill he didn't owe. Since his income was below the filing threshold and he qualified for Exception 1(d) for banking purposes, he could apply for an ITIN without filing a tax return at all. We were able to get the incorrect return canceled and submit a proper ITIN application. Would have never figured this out without speaking directly to an IRS agent. Completely worth it for anyone dealing with ITIN issues!

Something to watch out for - many "tax preparation services" in immigrant communities make money by filing returns and claiming refundable credits, even when people don't need to file! They often don't explain what they're doing or the potential consequences. For ITIN applications, they should be checking if you qualify for an exception first before filing a return. The exceptions are: 1) Passive income from investments/partnerships 2) Tax treaty benefits 3) Third party withholding 4) Banking/loan documentation needs If your friend just needed the ITIN for banking, he probably qualified for an exception and didn't need to file or pay anything. I'd recommend having him contact the Taxpayer Advocate Service (they have translation services) to review what was filed.

Quick question - my brother is in a similar situation. Does anyone know if there's a statute of limitations on filing for an ITIN? He's been in the US for 4 years but never got one. Can he still apply now or is it too late?

This is exactly the kind of predatory practice that unfortunately targets people who don't speak English well. Your friend was likely taken advantage of by a tax preparer who filed an unnecessary return to generate fees. Since your friend's income is below the filing threshold and he just needed an ITIN (probably for banking), he most likely qualified for Exception 1(d) and shouldn't have had to file a tax return at all. The $839 "owed" is probably from a return that was filed incorrectly or unnecessarily. I'd strongly recommend your friend contact the Taxpayer Advocate Service at 1-877-777-4778 - they have multilingual support and can help sort this out for free. They can review what was filed and help determine if the tax bill is legitimate or if the return should be amended/canceled. Also, consider filing a complaint against the community center using Form 14157 if they deliberately filed an unnecessary return to generate fees. This kind of exploitation of immigrant communities needs to be reported. The good news is this situation can likely be resolved - your friend probably doesn't owe anything and can still get his ITIN through the proper exception process.