Final answer:
The IRS would issue an ITIN to Edna, a foreign national who has a U.S. tax reporting requirement and does not have a Social Security number. This number assists in tax processing for individuals ineligible for a SSN. The correct option is b. edna, a foreign national, who has a u.s. tax reporting requirement
Step-by-step explanation:
The IRS would issue an Individual Tax Identification Number (ITIN) in situations where the person does not have a Social Security Number (SSN) and is required for federal tax reporting purposes. Among the options provided:
- Harry, an immigrant with a green card who works at a local grocery store, would typically use a Social Security Number (SSN) for tax purposes, as green card holders are residents for tax purposes and eligible for an SSN.
- Edna, a foreign national who does not have a SSN but has U.S. tax reporting requirements, is the person to whom the IRS would issue an ITIN.
- Shirley, a U.S. prison inmate who never applied for a Social Security Number, would typically be eligible for an SSN and would not receive an ITIN unless there were unusual circumstances.
- Carl, a U.S. citizen with foreign investment income, would use his SSN for tax purposes, as U.S. citizens are not eligible for ITINs.
An ITIN is used by individuals who need a tax identification number but do not qualify for an SSN, such as certain non-resident aliens, their spouses, and dependents.