Do You Need to Renew Your ITIN?
IRS announces new changes to ITIN program made under a new law, the Protecting Americans from Tax Hikes (PATH) Act, which was passed by Congress in December of 2015.
The Internal Revenue Service announced important changes to help taxpayers comply with revisions to the Individual Taxpayer Identification Number (ITIN) program made under a new law. The changes require some taxpayers to renew their ITINs at the earliest. If taxpayers have an expired ITIN and don’t renew before filing a tax return next year, they could face a refund delay and may be ineligible for certain tax credits and any claimed exemptions.
Who Has to Renew an ITIN:
The IRS emphasizes that no action is needed by ITIN holders if they don’t need to file a tax return next year. There are two key groups of ITIN holders who may need to renew an ITIN so it will be in effect for returns filed in 2020:
- Unused ITINs. ITINs not used on a federal income tax return at least once in the last three tax years (covering 2016, 2017, or 2018) will no longer be valid to use on a tax return as of Jan. 1, 2020. ITIN holders in this group who need to file a tax return next year will need to renew their ITINs.
- Expiring ITINs. ITINs that will expire under this schedule are those with middle digits of 83, 84, 85, 86, 87 (Example: 9XX-83-XXXX). If you or someone in your family has an ITIN with the middle digits 83, 84, 85, 86, 87 and you expect to have a filing requirement in 2020, you can go ahead and submit your renewal application now.
How to Renew an ITIN:
Only ITIN holders who need to file a tax return need to renew their ITINs. Others do not need to take any action. To renew an ITIN, taxpayers must complete a Form W-7, Application for IRS Individual Taxpayer Identification Number, follow the instructions and include all information and documentation required. To reduce burden on taxpayers, the IRS will not require individuals renewing an ITIN to attach a tax return when submitting their Form W-7, however if you have a filing requirement you should file the return with the renewing application to prevent a delay in your refund. Taxpayers are reminded to use the newest version of the Form W-7 available at the time of renewal (Use version “Rev. September 2016”).
- As a reminder, ITINs with middle digits of 70 through 82 have previously expired. Taxpayers with these ITINs can still renew at any time, if they have not renewed already.
There are three ways taxpayers can submit their W-7 application package to renew their ITIN. They can:
Mail their Form W-7 — along with the original identification documents or certified copies by the agency that issued them — to the IRS address listed on the form (identification documents will be returned within 60 days).
- Use one of the many IRS authorized Certified Acceptance Agents (CAAs). CAAs can authenticate all identification documents for primary and secondary taxpayers, verify that an ITIN application is correct before submitting it to the IRS for processing and authenticate the passports and birth certificates of dependents. This saves taxpayers from mailing original documents to the IRS.
- In advance, call and make an appointment at an IRS Taxpayer Assistance Center in lieu of mailing original identification documents to the IRS. Applicants should bring a completed Form W-7 along with all required identification documents
For more information please visit https://www.irs.gov/credits-deductions/individuals/how-do-i-renew-my-itin OR contact www.aotax.com