Final answer:
The IRS issues an Individual Taxpayer Identification Number (ITIN) for individuals who need to file taxes but are not eligible for an SSN. ITIN enables these individuals to comply with U.S. tax laws and helps the IRS process returns and track payments. The 1040EZ tax form is one of the tools used for filing taxes, and it represents citizen’s direct economic interactions with the government.
Step-by-step explanation:
In the case of an individual who is not eligible to be issued an SSN but who has a tax filing obligation, the IRS issues an Individual Taxpayer Identification Number (ITIN) for use in connection with the individual's tax filing requirements.
The process of filing taxes is a critical aspect of fiscal policy and financial responsibility for U.S. citizens and residents. Each year around mid-April, individuals are expected to file an income tax form, with the 1040EZ tax form being the simplest. Tax forms like the 1040 are pivotal documents that reflect changes in the tax code and have significant economic consequences. They are used to report income and calculate taxes owed to the government, which then funds a variety of government operations.
Not everyone is required to pay the same amount in taxes, as the tax code includes various tax rate schedules based on income levels and other factors. For those who do not have an SSN, typically non-residents who are still responsible for tax obligations in the U.S., the ITIN serves as a replacement. It allows the IRS to process taxes efficiently without a social security number, ensuring that everyone fulfills their legal obligations.