Recently, we have met quite a few applicants who tried to apply for an ITIN application on their own but were rejected multiple times. Many eventually reached out to our IRS authorized CAA (Certifying Acceptance Agent) for help. Some clients were even rejected three times, wasting almost 9 months in the process. This is extremely costly and unnecessary.

In this article, we will explain in detail the common reasons why an ITIN application is rejected, how to appeal, the steps for reapplying for an ITIN, and provide practical tips to avoid mistakes. The goal is to help applicants successfully complete the ITIN application service without delays.

1. Why Does an ITIN Application Get Rejected?

The ITIN application is reviewed by a dedicated IRS department, and the process is very strict. The most common rejection reasons include:

(1) Errors in IRS Form W-7：Many ITIN rejections come from mistakes in Form W-7. Missing information, incomplete answers, or selecting the wrong ITIN application reason often cause the IRS to issue a CP-566 notice (application pending due to missing documents) or a CP-567 notice (ITIN application rejected).

For example, if you are a student or visiting scholar (F/J visa) with a scholarship, you must check Reason f (nonresident alien student) AND also check Reason h (Exception) on Form W-7. If you only check one box, the IRS will reject the ITIN application.

Claiming a tax treaty benefit (Reason a) also requires entering the Exception number, treaty country, and treaty article in Reason h. If missing, your ITIN application will be considered incomplete.

Dependents must be listed correctly. If you check the wrong box, the IRS will see a conflict between the tax return and the W-7 form.

Submitting multiple W-7 forms before the previous one is processed, or applying when you already have an SSN, will almost always result in rejection.

Examples of Correct ITIN Application Exceptions:

Example A: F-1 Student / Scholarship；Exception 2(b) – Scholarship Income; Treaty country: China; Treaty Article: [Article # / or N/A]

Example B: Tax Treaty Claim：Exception 1d – Claiming benefits under tax treaty; Treaty country: China; Treaty Article: [Article #]; Income type: salary/pension

Example C: Dependent
Dependent of U.S. person – listed as dependent on Form 1040 of [Taxpayer name], SSN/ITIN: [number]

(2) Identity Document Issues
Expired or invalid passports, or documents not notarized/verified by a CAA agent, are a common reason for ITIN rejection. Submitting documents without going through a CAA certified acceptance agent may cause the IRS to question their authenticity.

(3) Missing Supporting Documents or Tax Returns
In most cases, an ITIN application requires Form 1040NR or another U.S. tax return. If you fail to attach the required tax return and don’t qualify for an exception, the IRS will deny your application.

(4) Duplicate Applications or SSN Conflicts
If you resubmit before your previous ITIN application is processed, or if the IRS system detects that you already have a Social Security Number (SSN), your ITIN application will be rejected.

2. How Will the IRS Notify You of an ITIN Rejection?

The IRS issues ITIN rejection notices by mail only. Applicants typically receive either a CP-566 (incomplete application) or a CP-567 (application rejected) letter. Be careful: the IRS does not send ITIN application notices by email or phone. If someone contacts you by email asking for your passport or W-7 form, it is likely a scam.

3. What to Do After an ITIN Application is Rejected?

If you receive CP-566: This means your ITIN application is missing documents. You have 45 days to send the required items along with the original notice. Include a properly completed Form W-7 and any missing tax returns or exception documents.

If you receive CP-567: This means your application was completely denied. You must start a new ITIN application with a new W-7 form. Make sure to:

Select the correct ITIN application reason.

Attach the tax return (Form 1040NR) or required supporting evidence.

Submit either the original passport or CAA-certified copies.

If you are unsure how to respond after your ITIN rejection, we strongly recommend using a professional ITIN application service. Submitting your application through an IRS-authorized CAA ensures that your documents are properly certified, your Form W-7 is reviewed for accuracy, and you can avoid mailing your original passport overseas.