Friday, July 6, 2018

Taxpayers with expiring ITINs should take action to avoid issues later

More than 2 million Individual Taxpayer Identification Numbers are set to expire at the end of 2018. Affected taxpayers who expect to file a tax return in 2019 must submit their renewal applications as soon as possible to beat the rush and avoid refund delays next year.
Here are several facts about which ITINs are expiring and how taxpayers renew them:
  • ITINs that have not been used on a federal tax return at least once in the last three consecutive years will expire Dec. 31, 2018.
     
  • ITINs with middle digits 73, 74, 75, 76, 77, 81 or 82 will also expire at the end of the year. An example of this is 9NN-73-NNNN. These numbers need to be renewed even if the taxpayer has used it in the last three years.
     
  • This summer, the IRS is sending the CP-48 Notice , You must renew your Individual Taxpayer Identification Number to file your U.S. tax return, to affected taxpayers with expiring ITINs that have been used at least once in the past three years.
     
  • The notice explains the steps for taxpayers to take to renew the ITIN if they will include it on a U.S. tax return filed in 2019.
     
  • Taxpayers who receive the notice after renewing their ITIN do not need to take further action unless another family member is affected.
     
  • Taxpayers with an ITIN that has middle digits 73, 74, 75, 76, 77, 81 or 82, as well as all previously expired ITINs, have the option to renew ITINs for their entire family at the same time.
     
  • ITINs with middle digits of 70, 71, 72, 78, 79 or 80 have previously expired. Taxpayers with these ITINs can still renew at any time.
     
  • To renew an ITIN, a taxpayer must complete Form W-7 and submit all required documentation.

ITINs are used by people who have tax filing or payment obligations under U.S. law but who are not eligible for a Social Security number. ITIN holders who have questions should visit the ITIN information page on IRS.gov and take a few minutes to understand the guidelines.

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