Why was the ITIN created?

Before 1996, individuals without an SSN had no way to file taxes despite earning US-source income. The IRS created the ITIN to close that compliance gap, ensure tax collection from foreign nationals and non-resident workers, and support tax treaty administration.

What was the 2012 ITIN reform?

In 2012 the IRS tightened ITIN documentation rules. Original documents or issuer-certified copies became mandatory for most applicants; notarized copies were dropped. The IRS also formalized the Certifying Acceptance Agent (CAA) program to verify documents in person and submit certified copies on behalf of applicants.

Did the PATH Act change the ITIN program?

Yes. The Protecting Americans from Tax Hikes (PATH) Act of 2015 introduced the three-year non-use expiration rule and the scheduled middle-digit expiration batches. These changes took effect over 2016-2017 and remain in force in 2026.

Updated June 25, 2026

When Was the ITIN Created? History of the IRS Tax ID

Q: How many ITINs has the IRS issued since 1996?

The IRS has issued more than 25 million ITINs since the program launched in 1996. Roughly 4 to 5 million ITINs are active at any given time after expiration retirements, and the IRS issues approximately 500,000 to 1 million new and renewed ITINs each year.

When Did the IRS Launch the ITIN Program?

The IRS launched the ITIN program in July 1996. Before the launch, non-resident aliens and foreign nationals with US-source income had no consistent way to file federal tax returns because the Social Security Administration only issued SSNs to individuals with US work authorization or specific federal benefit eligibility.

For the broader definition of an ITIN see the what is an ITIN page.

Why Did the IRS Create the ITIN?

Three pressures drove the 1996 launch:

Tax compliance gap. Millions of foreign nationals and undocumented workers earned US income but had no tax ID, so the IRS could not collect or track filings.
Treaty administration. US tax treaties with 67+ countries required a unique tax ID to apply reduced withholding rates. SSNs were unavailable to most treaty beneficiaries.
Dependent and spouse claims. US taxpayers with foreign-resident dependents or spouses needed a tax ID to claim them on returns.

How Many ITINs Has the IRS Issued Since 1996?

The IRS has issued more than 25 million ITINs across the program's history. Issuance trends:

1996-2005: Approximately 8 million issued during the initial scaling decade.
2006-2015: Peak issuance years, roughly 1.2 million per year.
2016-2025: Issuance moderated to 500,000-1 million per year after PATH Act reforms.
Active ITINs in 2026: Roughly 4-5 million, accounting for expirations and retirements.

What Major Reforms Has the ITIN Program Undergone?

Year	Reform
1996	ITIN program launch (July).
2003	Acceptance Agent program formalized.
2012	Notarized copies dropped; CAA program expanded with W-7(COA).
2015	PATH Act introduced 3-year non-use expiration and middle-digit retirement schedule.
2017-2020	Middle digits 70-83 retired in rolling batches.
2026	Middle digits 88 retire on December 31.

What Is the ITIN Used For Today?

In 2026 the ITIN serves the same core purpose as in 1996 — federal tax filing — plus several modern use cases:

Filing Form 1040 or 1040-NR for US-source income.
Claiming Child Tax Credit, Credit for Other Dependents, and treaty benefits.
Opening bank accounts with ITIN-friendly banks.
Building US credit history through ITIN-accepting credit cards.
Setting up payment processing (Stripe, PayPal, Venmo) for non-resident creators.
Reporting passive US income (rental, dividends, capital gains).

For more on the term itself see the ITIN number meaning page.

Frequently Asked Questions About ITIN History

The IRS created the Individual Taxpayer Identification Number (ITIN) in July 1996. It launched to give individuals who were not eligible for a Social Security Number a legitimate way to file US federal tax returns and meet IRS compliance requirements.

Ready to apply? Get your ITIN with a Certifying Acceptance Agent — $297 flat, ready in 7 days.