The IRS made some revisions to the Individual Taxpayer Identification Number (ITIN) program made under a new law and has recently announced to help taxpayers comply with the changes. Beginning October, taxpayers will be required to renew their ITINs as per the changes recently made. Before you file your income tax return in 2018, your ITIN may have already expired by then. If you have an ITIN that hasn’t been used on your federal tax return at least once for the last years, it’s considered as expired on December 31, 2017. Furthermore, all ITINs issued before 2013 with middle digits of 70, 71, 72, or 80 are considered expiring. According to the IRS, those who want to file their tax return in 2018 must renew their ITIN. In order to help taxpayers out, they developed outreach products and additional information on the ITIN program in different languages including English, Spanish, Chinese, Russian, Korean, Vietnamese and Haitian Creole. The IRS also reminds those who have ITINs with middle digits 78 and 79 that already expired in 2016 can apply for a renewal as well.
How are you going to renew your ITIN?
Those who need to file a tax return and are ITIN holders are the only ones who are required to renew their ITINs. You no longer have to take any action if you don’t fall into this situation. The renewal of ITINs will start October 1, 2016, for ITIN holders that already expire because of not using it for three years or because it has the middle digits of 78 or 79. The Form W-7 must need to be completed in order to renew, it’s the Application for IRS Individual Taxpayer Identification Number. All you have to do is follow the instructions and enter all the necessary information and documentation being asked. The IRS wants to reduce the burden to taxpayers by not requiring taxpayers renewing an ITIN to attach a tax return upon their Form W-7 submission. Make sure you use the latest version of the Form 2-7 which is provided when you renew and will be posted accordingly.
Here are the three methods of submitting taxpayer’s W-7 application package in renewing their ITIN:
What are the others step aimed to help taxpayers in renewing ITINs?
The IRS will be providing a family option for ITIN renewal in order to make the renewal of ITINs easier and to lessen the paperwork preparation and submission. If your ITIN has a middle digit of 78 or 79 and you received a renewal letter from the IRS, you have the option to renew your ITINs and all of your family members at the same time instead of renewing separately for many years. On their tax return, family members must include the tax filer, the spouse and any dependents they claim.
In addition, the IRS works closely with several partners and outreach groups to spread out information about the ITIN changes and let people know about the new guidelines. Additional information and material will be provided by the IRS to the said groups and taxpayers as soon as possible.
It’s best that you plan in advance in renewing your ITINs and take action as soon as possible to prevent facing any issue when filing tax returns in early 2017.
What happens if you don’t renew your expired ITIN?
Taxpayers with an expired ITIN must renew before filing their tax return the next following year in order to avoid delays in receiving their refunds and may not be able to qualify for certain tax credits such as the Child Tax Credit and the American Opportunity Tax Credit. The ITN program is essential for Americans to comply with their tax obligations. The IRS made steps in helping taxpayers adapt to the changes and reduce the burden as much as possible which is why there is no reason for individuals to miss renewing their expired ITIN.
