Around 2 million ITIN (Individual Identification Numbers) of taxpayers will expire at the end of 2019, the IRS informed on June. The governmental organism encouraged the taxpayers to send the renewal form as sooner as possible to avoid delays on the next year’s returns.
Chuck Rettig, IRS commissioner said: “We urge taxpayers with expiring ITINs to take action and renew the number as soon as possible. Renewing before the end of the year will avoid unnecessary delays related to their refunds”.
Under the Protecting Americans from Tax Hikes (PATH) Act, the ITIN that haven’t been used in a tax return at least once in the last three years will expire the 31st of December of 2019.
Also, ITINs with middle digits 83, 84, 85, 86 or 87 that haven’t been renewed, will also expire at the end of the year. These affected taxpayers who have plans to file their taxes in 2020, will need to send a renewal application before 2020 as soon as possible.
In order to help taxpayers, the IRS has tons of informative material available in different languages on their website. In addition, you can ask us for information to solve all your doubts related to the ITIN, if you are in need of renew it or how to obtain one.
What’s an ITIN?
An Individual Taxpayer Identification Number (ITIN) is a 9 digit tax ID number for nonresidents and resident aliens, their spouses and dependents who cannot get a Social Security Number. The IRS is the organization who issues this identification number.
How to get an ITIN?
To get an ITIN you must fill the W-7 form. You have to prove your immigrant status or nonresident status, as well as your identity. You also must attach to your W-7 form a tax return from a previous year. Organizations called “acceptance agents must have IRS authorization to help people to obtain their ITIN.
Who must renew the ITIN?
Taxpayers which ITIN is about to expire and expect to file taxes on 2020 must fill an application. The ITINs with middle digits 83, 84, 85, 85 or 87 must renew the ITIN even if they’ve used it in the previous three years. These taxpayers will receive a CP-48 notification.
This notification explains the steps in order to renew the ITIN in case a tax return will be presented in 2020. Taxpayers who receive this notification after having their ITIN renewed must ignore it, at least another family member is involved.
Taxpayers with ITINs with middle digits 83, 84, 85, 86 or 87, as well as the ITINs expired previously, has the chance to renew it for their entire family at the same time.
Ways to send the W-7 form
Taxpayers who must renew their ITIN, may use any of the following three ways:
- Mail their form with the original identification documents or a certified copy by the organization in charge of issuing it, to the IRS address listed on the Form W-7 instructions. The IRS will review the information and send back the documentation within 60 days.
- Work with Certified Acceptance Agents (CAAs) authorized by the IRS to help taxpayers apply for an ITIN. 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 for dependents. This saves taxpayers from mailing original documents to the IRS.
- Call and make an appointment with a designated IRS Taxpayer Assistance Center to have each applicant’s identity authenticated in person instead of mailing original identification documents to the IRS. Each family member applying for an ITIN or renewal must be present at the appointment and must have a completed Form W-7 and required identification documents.
Avoid common mistakes and prevent delays for the next year
Tax returns submitted in 2020 with an expired ITIN will be processed. However, certain tax credits and any exemptions will not be considered. Taxpayers will receive a notification by mail urging them to modify the return and renew their ITIN. Once the ITIN has been renewed, all credits and exemptions will be restored, and any returns will be made.
These errors are very common, so we advise you to be careful when requesting your renewal:
- Send identity documentation without the W-7 form.
- Send the W-7 with incomplete information.
- Send insufficient identification documentation, such as residence documents in the US and official documentation containing name changes.
Review all documentation very well before sending it by mail.
For more information, do not hesitate to contact us. In GlobalTax we will always be aware of you, to solve all your doubts and find the solution that best suits your interests.