IRS Tax Problems

Does Your Tax ID Number Need to be Renewed?

Does Your Tax ID Number Need to be Renewed?

Do you use an Individual Taxpayer Identification Number (ITIN) instead of a Social Security Number?

If so, you are far from alone. ITINs are essential tools for making payments to the government—whether for taxes or anything else—if you aren’t eligible for a Social Security Number.

Unlike Social Security Numbers, ITINs expire based on a few specific scenarios, and that means that if you have an ITIN that you haven’t used in the last three consecutive years or if your ITIN’s middle digits are 83, 84, 85, 86 or 87 (regardless of whether you’ve used it in the last three years or not) and you haven’t already renewed it, then you are among the approximately two million holders of ITINs whose numbers will expire on December 31, 2019. There are also plenty of ITIN holders whose numbers have already expired – namely, those whose ITINs have middle digits of 70 through 82.

What can you do to remedy the situation?

The first thing to remember? Don’t panic. Renewing your ITIN can be done at any time, whether it is due to expire or already has. Doing so is something you’ll need to take care of if you need to file a 2020 tax return, because although a return that is submitted with an expired ITIN will be accepted for processing, taxpayers who file using an expired ITIN will find that any exemptions (and certain tax credits) that they’ve taken will not be allowed. You won’t be fined or penalized for using an expired ITIN: instead, you’ll receive notification in the mail of your need to renew, and you’ll be delayed in receiving any refund to which you’re entitled.

The Renewal Process

If your ITIN has expired (or is about to), you can take care of it by filling out IRS Form W-7, which does not necessarily need to be submitted in tandem with your federal tax return. The W-7 has detailed instructions on the information that’s required and how to complete the form, and will ask for specific backup material, including the reason that you need to use an ITIN. There are a few ways that you can submit the form, including:

  • The simplest method is to send it in by mail. Make sure that you provide the original identification documents (or copies certified by the issuing agency) and send it in to the address provided in the W-7 instructions. The IRS review process will be completed within 60 days and your documents will be returned.
  • The IRS has authorized Certified Acceptance Agents (CAAs) and given them the ability to check and approve primary and secondary taxpayers’ identification documents. Working through a CAA saves you the step of sending in original documents, and provides the security of not having to send precious documents such as passports and birth certificates for dependents through the mail.
  • There are also designated IRS Taxpayer Assistance Center that you can contact to set up an appointment to come in and be authenticated in real time, in person. Doing so eliminates the need to put original identification documents in the mail, but keep in mind that choosing this option requires that all family members who are renewing their ITIN be present with their required documentation and the completed W-7. 

If your ITIN has expired, then the renewal process can be done for your entire family at one time, with family members being defined as yourself, your spouse, and any dependents that you claim on your own return. If you get a letter from the IRS notifying you that your ITIN has expired, by indicating that you want to renew the whole family at once, you can take care of the process for those who have not yet received notification of expiration.

No matter what method of providing the completed W-7 form you choose, ensure that you do so correctly—otherwise you will have to go through the process again, and delay your ability to get your refund or the credits for which you have applied. Make sure you submit all the required documents, fill the W-7 form out completely, and provide all supporting documentation (i.e. U.S. residency documentation, name change documents, etc). If your passport does not contain a date of entry into the U.S., the IRS will not accept it as a stand-alone document for dependents’ identification unless you are from Canada, Mexico, or are using it for identification of dependents of U.S. military personnel overseas. In all other situations an entry stamp is required, and lacking that you will need to provide the following:

  • For dependents under the age of 6, U.S. medical records
  • For dependents under the age of 18, U.S. school records
  • For dependents over the age of 18, U.S. school records (if students), bank statements or utility bills, or rental statements. These documents must contain the applicant’s name and U.S. address

Those who are uncertain about the process of renewing the ITIN can check the IRS web page, review the TAC ITIN authentication page or contact a tax professional for assistance.

Jon Osborn, EA writes for TaxBuzz, a tax news and advice website. Reach his office at [email protected].   

share this post
Steward Financial

Steward Financial

Jon Osborn is a tax preparer based in San Dimas, California. His company, Steward Financial Services, offers a broad range of tax preparation, accounting and business consulting for small businesses. He loves to work with clients who are looking for answers to complex tax and business planning issues. He has owned several small businesses and worked with over one hundred small business owners. He helps his individual and business tax clients find the best ways to spend their money in order to minimize IRS tax. Small businesses looking to grow, sell or just increase cash flow are one of Jon's specialties.

Steward Financial Services
38 reviews

California

In the face of economic uncertainty, TaxBuzz is the industry's most up-to-date tax information.

Join 60,000 who get our weekly newsletter. No spam.

We know tax and accounting issues are complicated.

Do you have additional questions on this topic for this author?

Related Posts

Latest Posts