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What is Adoption Taxpayer Identification Number ?
An Adoption Taxpayer Identification
Number (ATIN) is a temporary Identification Number that is
issued by the Internal Revenue Service for the child in a
domestic adoption. Here the adopting taxpayers are unable to
obtain the child’s Social Security Number (SSN). This number is
generally put on the federal income tax forms to identify the
child during the pending of final domestic adoption. This will
help an individual to claim the child as a dependent and if
granted then claim a child care credit. The ATIN is got by
completing IRS form W-7A (Application for Taxpayer
Identification Number for Pending Adoptions).
Need of ATIN
The ATIN is generally taken by individuals who are in the
process of adopting a child and are unable to claim the child as
a dependent or claim a child care credit. ATIN is required since
recent changes in the tax law requires that when a person’s name
is listed on the federal income tax return, the individual must
be in a position to provide a valid identifying number for that
person whose name is to be listed. During adopting a child you
may not have obtained a new Social Security Number (SSN) for
that child who is already living in your home. If you do not
have the child’s SSN and you are eligible to claim the child as
your dependent then, it is required for you to request for an
ATIN so that you can claim the child as a dependent and the
child care credit.
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Necessary Requirements to Apply for an ATIN
An individual is eligible to apply for an ATIN only if he/she is
able to meet the following requirements or qualifications:
• If the adoption is a domestic option.
• If the adoption is not yet decided or completed and you are
unable to get the child’s existing SSN.
• If you are unable to apply for a new SSN for the child since
the final domestic adoption is pending. This is almost the same
thing as the requirement two.
• If the child is legally taken by you for adoption and kept
with you in your house granted by an authorised adoption agency
or agent.
• If you are eligible to claim the child as a dependent.
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To know whether you are eligible or
you qualify to claim the child’s exemption or child care credit
it is advised to check the following headings in the Form 1040
instructions.
a) Credit for child and Dependent Care Expenses.
b) Exemptions.
You can also go through Exemptions and Standard Deductions and
Filing Information under Publication 501 and Child and Dependent
Care Expenses under Publication 503 for further details
required. When adopting a child from a foreign country it is not
that easy. ATIN can be given without having enough documentation
from the Immigration and Natural Service (INS). This is required
to satisfy the Social Security Administration’s requirements for
a SSN. If in case the application applied for a SSN is rejected,
then it is required to apply to the IRS for an ITIN i.e.
Individual Taxpayer Identification Number using the form W-7.
The qualifying taxpayers use the form W-7A for applying for
Taxpayer Identification Number for pending adoptions. To fill in
this form the necessary data required are the child’s name, the
placement agency that is found in the placement documentation,
the birth information. The placement documentation must be
attached and submitted along with form W-7A.
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Details
Regarding Placement Documentation
Placement documentation is nothing but the signed documentation
regarding the care of the child for legal adoption. It is also
referred to as “Placement Agreement”, “Placement Order”,
“Temporary Placement Paperwork” etc. To satisfy this requirement
one of the following documents is necessary:
• A court order that approves the placement of the child with
you for legal adoption.
• There should be a placement agreement signed between you and a
public adoption agency.
• There should be an affidavit signed either by an attorney or
any government official regarding the placement of the child
with the adopter pursuant to the states legal adoption laws.
• There should be document that is signed by a hospital official
who authorises in releasing the newborn child to the adopter for
legal adoption. |
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Validity of
ATIN
Once the adoption becomes finalised, the parents who are adopting
the child should apply and get the SSN and inform the IRS about the
new SSN of the child. Once it is informed and is been notified by
the IRS, the ATIN will be deactivated. If the IRS is not informed
about the new SSN of the child within a period of two years, then
the ATIN will be automatically deactivated. This is deactivated
since it is not a permanent valid identification number. It is
issued as a temporary use until the child gets a valid SSN. A notice
will be sent to the adopting parents regarding the expiry of the
ATIN eighteen months after the taxpayers receives the ATIN. If in
case the ATIN expires even before the final adoption then the
adopting parents have to apply for an extension, which is generally
given in the eighteen month reminder notice. ATIN can be got
generally four to eight weeks after the IRS receives the completed
form W-7A. Also you cannot use an ATIN to claim the earned income
tax credit.
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Article Contributed By: Jaya Suresh
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