In June, we covered an IRS press release announcing the expiration of more than 2 million ITINs. Those that haven’t been used at least once in three consecutive years or contain middle digits 73, 74, 75, 76, 77, 81, or 82 will expire on December 31, 2018—unless, of course, affected ITIN holders renew before the end of the year. Well, there’s some good news for those who have been waiting to renew: The IRS is now accepting ITIN renewals.
What is an ITIN?
Issued by the IRS for federal tax reporting purposes, the nine-digit Individual Taxpayer Identification Number is used to process tax returns and tax payments of those who don’t qualify to receive a Social Security Number. For example, a British citizen residing in the US who is a full-time employee at a local diner would need to apply for an ITIN before filing a tax return.
Why are ITINs expiring?
Section 203 of the Protecting Americans from Tax Hikes (PATH) Act established new requirements related to the issuance and renewal of ITINs:
- ITINs issued before 2013 were placed on a staggered renewal schedule.
- ITINs that had not been used for three consecutive years would now expire.
People submitting a tax return with an expired ITIN were told to expect a delay in processing and were warned that they may no longer be eligible for some credits.
How do you renew an ITIN?
To renew an ITIN, fill out and submit a Form W-7, Application for IRS Individual Taxpayer Identification Number, and all required documentation. (Detailed instructions for renewing an ITIN can be found at IRS.gov.)