The IRS has issued an important reminder about ITINs (Individual Taxpayer Identification Number). If you don’t know what an ITIN is, then this probably doesn’t pertain to you, but if you’re like me and curious to learn or don’t know if it pertains to you, then you can read about it here.
“All ITINs not used on a federal tax return at least once in the last three years (2014, 2015 & 2016) will expire on December 31, 2017. Additionally, all ITINs issued before 2013 with middle digits of 70, 71, 72 or 80 (Example: (9XX-70-XXXX) will expire at the end of the year (December 31, 2017).” – IRS
If you know you will need to file a tax return in 2018 for tax year 2017, you can renew your ITIN by submitting a Form W-7, Application for IRS Individual Taxpayer Identification Number, along with your original identification documents or certified copies by the issuing agency. Note that applicants must have a valid filing requirement or tax purpose for requesting or renewing an ITIN. Don’t worry, if your ITIN expires because you currently don’t or won’t have a tax purpose, but you find out you need it for future years, previously expired ITINs can be renewed later.
What happens if you file a tax return with an expired ITIN?
That is a good question and is also answered at the bottom of the reminder, but I will repeat it here for convenience. Not only will the processing of your tax return be delayed, but you won’t receive any exemptions, and/or credits and NO refund will be paid at that time. The IRS will issue a notice, or should issue a notice, explaining the delay, and you will most likely have to renew your ITIN anyway before receiving your refund and/or exemptions and credits. SO! Let’s be proactive and start that renewal process as soon as possible so you don’t miss out!
If you wish to see the IRS reminder, click here.
For ITIN Expiration Frequently asked questions, click here.
For any other questions or concerns, please contact your accountant and they can assist you in this process.
Chris Morrison, CPA