Some updates from my case.
I submitted the ITIN application for my wife through the local IRS office on March 5, altogether with the certified copy of my wife's passport. I was able to get through the IRS phone call 3 times in the past two weeks. In mid July, they told me our application was already in the system and we should be able to hear back by the end of that week. Then we called again the following Monday and were told we would have to wait until end of this month. So we called today, and the IRS person told us that they are now processing my wife's ITIN application and we should receive a letter from them within one month AND the ITIN processing will be done within 3 months (which confused me a lot). We were also told that our federal tax return has not been forwarded to the tax office, which is totally expected given the requirement on the ITIN number.
Hope this helps whoever is still in the long waiting process.
