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ITIN Application Rejected? Here’s Why and How to Fix It

July 6, 20267 minute read
itin application rejected
itin application rejected

The most common causes of IRS ITIN application denials are a mismatch in name details, a lack of a tax return, expired or non-certified passport copies, selecting the incorrect reason code on Form W-7, and/or failure to provide supporting documents. A CP567 notice provides the specific details of the IRS denial; rather than amending the previously submitted Form W-7, the Form W-7 must be resubmitted with supporting documents.

Has your ITIN application been rejected? There is no need for panic. We work with many non-resident founders who receive a CP567 notice and have no idea why they received it or which part of their file triggered it. The IRS does not re-evaluate a previously submitted application, and a new Form W-7 must be submitted with supporting documents and the required tax return.

Unfortunately, the resubmission adds more delays to your plans. The IRS has standard processing times for ITIN applications that range from 7 to 11 weeks outside of peak business and tax filing seasons. A resubmission of an application restarts the processing time. If you were planning to use your ITIN to file a tax return or open a business bank account, it may be a good idea to adjust your plans accordingly.

Why Was My ITIN Application Rejected?

When the IRS denies a Form W-7 application, they send a CP567 notice. This differs from a CP566 notice, which is a request for additional documents. A CP567 notice indicates that the IRS has made a decision on the application and has completed its review.

The reasons are listed, but the wording is vague. From our experience working on these cases, we believe that most denials come down to five issues.

Name discrepancies. Form W-7 requires that your name must match your passport, and in the same order, with all middle names included. We have seen denials in cases where Form W-7 shows “Mohammed A. Khan” while the passport shows “Mohammed Ahmed Khan.” The IRS won’t assume what you meant; it will flag it.

Documents that are either expired or not certified. Passports must not be expired or expiring within six months after the application. Copies must be certified by the issuing country or by a Certified Acceptance Agent. The IRS does not accept notarized copies, and apostille certifications are no longer accepted.

Incorrect reason codes. On Form W-7, you are required to check a box that explains the reason you are requesting an ITIN. In box (a), you declare treaty benefits, and in box (b), you declare your reason for filing a return. If you declare treaty benefits in box (a), you are also required to cite the article of the treaty and the country. If you leave that box blank or check box (b) and do not submit a return, the application will be denied.

Missing tax return. Most ITIN applications require an attached federal return. For non-residents, this is usually Form 1040-NR. Applicants who think an ITIN can be issued without a return are usually mistaken, unless they qualify for one of the five documented exceptions in IRS Publication 1915.

Duplicate identity. The IRS will not issue a second number if an applicant already holds an ITIN or SSN, even if the applicant forgot about or never used it. Do not assume you need a new ITIN if you suspect you never had one. Check whether an old ITIN is still active, as it may have expired; ITINs have a 3-year period of inactivity before expiration.

What Does the CP567 Notice Actually Tell You?

Take the time to read the notice line by line. It will state one of these outcomes: you do not qualify for an ITIN, you submitted invalid documents, you did not respond to a previous request for information within 45 days, or your file did not support your reason for applying.

The notice provides a contact number. Within the US, call the number on your notice. Outside the US, the ITIN Unit is at 267-941-1000 (not toll-free). The IRS sometimes fixes a minor issue, such as a reviewer-detectable typo, without requiring a full resubmission. Otherwise, you are resubmitting.

How Do I Fix a Rejected ITIN Application?

Read the CP567 first. It is not helpful to assume the reasons for rejection. With the correct code and explanation, you will know exactly how to fix the issue.

Get a new Form W-7. Only use the most recent version, available at IRS.gov. Forms that are out of date get rejected.

Fix whatever was flagged. If it was a document issue, get a certified copy or use a Certified Acceptance Agent to avoid sending your original passport. If it was a reason code issue, put the correct code in the box and attach the corresponding treaty article or tax return.

Reattach your tax return if necessary, and make sure your name and address are consistent throughout the return and across all pages.

Send your completed application to IRS ITIN Operations, P.O. Box 149342, Austin, TX 78714-9342. Sending to the incorrect address or submitting the application through other means can cause delays and leave your file unaddressed for weeks.

Keep your CP567 notice. If the same issue occurs again, you will be able to reference the notice during your call to the ITIN unit and resolve it without delay.

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What Does It Cost, and How Long Does It Take?

The IRS does not charge a fee to submit Form W-7. The costs that surprise founders come from using a Certified Acceptance Agent or a filing service, which run from $299 to $699 as of mid-2026, depending on whether tax return preparation is included.

Filing Method Typical Cost Processing Time
Direct mail, self-prepared IRS fee: $0 7-11 weeks (13+ during peak season)
Certified Acceptance Agent $299-$699 Often faster, documents don’t leave the country
Taxpayer Assistance Center in person IRS fee: $0 7-11 weeks, appointment required

A rejection followed by resubmission effectively doubles your wait. If your original application took 9 weeks to get rejected and you resubmit immediately, you are looking at 4 to 5 months total before you have a working ITIN.

Common Mistakes We See With Non-Resident Founders Specifically

When founders come to us looking for an ITIN to open an LLC, get a Stripe account, or file a 1040-NR, they tend to do a few things over and over.

Some founders apply for an ITIN too early. If your LLC has no US tax obligation or you are just starting the entity and are not yet generating any income, the IRS will deny your ITIN application. Instead, apply for an Employer Identification Number (EIN) using Form SS-4. An ITIN is a personal number and does not help you start your LLC.

Some founders confuse an EIN with an ITIN. An EIN is a number that identifies a business. An ITIN is a number that identifies an individual for tax purposes. While you may need both, you cannot use one in place of the other.

Some founders send in original passports without tracking, or send documents from countries with slow certification processes, such as birth certificates. If you are in a country with a weak Certified Acceptance Agent network, account for extra weeks in your planning.

If you received a CP567 and are unsure what to fix, our team will review your rejection letter and help you refile with the correct documents the first time. Contact EasyFiling’s compliance team to help you with your ITIN.

Disclaimer:

β€œThis content is for informational purposes only and does not constitute legal, tax, or financial advice. For advice specific to your situation, consult a qualified US attorney or CPA.”

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Swostika Silwal

Swostika Silwal

Swostika Silwal, an ACCA graduate and the Co-Founder & CEO of EasyFiling Inc., specializes in helping non-resident entrepreneurs expand their businesses in the United States. She is currently pursuing the Enrolled Agent (EA) designation to further enhance her expertise.
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