Question

To which of the following would the irs issue an individual tax identification number (itin)? (search chapter 9)

a. harry, an immigrant with a green card, who works at a local grocery store
b. edna, a foreign national, who has a u.s. tax reporting requirement
c. shirley, a u.s. prison inmate, who never applied for a social security number
d. carl, a u.s. citizen, who has foreign investment income

Answer 1

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.