Individuals with a United States income tax filing obligation are required to apply for an Individual Taxpayer Identification Number (ITIN). ITINs are obtained and used in circumstances where a person who is filing income taxes, or is included on a tax return, is not be eligible for a Social Security number.
The IRS has issued reminders for taxpayers with expiring Individual ITINs, to submit their renewal applications as soon as possible. Failing to renew them by December 31st, will cause refund and processing delays in 2018.
Who Needs to Renew an ITIN?
The IRS sent out millions of letters informing those who needed to renew their ITINs. However, if you did not receive a letter, or you are unsure if you need to renew or not, here is a list of those who need to renew as per the IRS:
- ITINs with middle digits 70, 71, 72, or 80 (For example: 9NN-70-NNNN) need to be renewed if the taxpayer will have a filing requirement in 2018.
- Taxpayers whose ITINs expired due to lack of use should only renew their ITIN if they will have a filing requirement in 2018.
- Taxpayers who are eligible for, or who have an SSN should not renew their ITIN, but should notify IRS both of their SSN and previous ITIN, so that their accounts can be merged.
- Taxpayers whose ITINs have middle digits 78 or 79 that had already expired and were never renewed should renew their ITIN if they will have a filing requirement in 2018.
How to Renew an ITIN
To renew an ITIN, taxpayers must complete a Form W-7 and submit all required documentation. Although a Form W-7 is usually attached to the tax return, a taxpayer is not required to attach a federal tax return to their ITIN renewal application.
How MBAF Can Help
The ITIN renewal requirement is part of a series of provisions established by the Protecting Americans from Tax Hikes (PATH) Act enacted by Congress in December 2015. At MBAF we are very familiar with the ITIN provision and all of the other provisions of the PATH Act. Our experts can help you determine if indeed you need to file for an ITIN renewal, and if so, can make sure that all of your forms are filed and submitted correctly, and by the proper deadlines, so that you are well prepared to correctly file your tax returns in 2018.
Understanding the PATH Act and how it applies to ITIN renewal can be complex. If you would like to benefit from our expertise in these areas, or if you have further questions on this Advisory, do not hesitate to contact our International Tax specialists, or call us at 1-800-239-1474.