For those of you who are new to the world of tax law, you may be wondering how identifying oneself as an ITIN (Individual Tax Identification Number) to the IRS affects your ability to pay taxes. As you can imagine, it can make or break an otherwise successful tax business. And with the IRS increasing their scrutiny of ITIN filers, it is important that you understand your options so that you don’t miss out on any deductions or credits that could save you money. Here are some important questions which are frequently asked;
Do I have to renew my ITIN if I am not going to file a tax return or claim a refund?
No. In any case, assuming you record a US government assessment form or guarantee for discount from now on, you should recharge the ITIN (counting those of your wards) around then.
I just utilize my ITIN on data returns, for example, Forms 1099. Assuming my ITIN will terminate, do I need to reestablish it?
No. In the event that you utilize your ITIN solely for data returns and you are not documenting an expense form or guarantee for discount, you don’t need to recharge your ITIN.
Do spouses and dependents need to renew their ITINs?
For tax years 2018 through 2025, spouses and dependents should not apply for or renew an ITIN unless someone claims them for an allowable tax benefit or they file their own tax return. The individual must be listed on an attached US federal personal income tax return with the schedule or form that corresponds to the allowable tax benefit.
How will the taxpayer know that their ITIN has been renewed? Will you get a letter? If so, what is the notice number?
You will receive Notice CP565 when your ITIN has been renewed.
Where can I find my ITIN assignment date?
The ITIN assignment date can be found on the ITIN Assignment Notice CP565. If you no longer have your CP565 Notice, please call 1-800-829-1040 if you are within the United States. If you are outside of the United States, call 1-267-941-1000 (not a toll-free number).
Is an ITIN considered issued when the ITIN application and attached statement are received?
For new ITINs, the “issue date” will be the date of receipt of the Form W-7 application. For renewed ITINs, the “issue date” will be the original date it was assigned, before it expired.
How long does it take to get an ITIN?
If you are eligible for an ITIN and your application is complete, you will receive a letter from the IRS assigning your tax identification number, usually within seven weeks (up to 11 weeks if requested). Apply during peak tax season (January 15 to April 30) or from abroad). If you have not received a response within the above time period, you may call 1-800-829-1040 (toll-free within the United States) to check the status of your application. Overseas taxpayers can call 1-267-941-1000 (not a toll-free number).
How would it be a good idea for me to respond in the event that my legitimate name has changed?
If you are renewing your ITIN and your legal name has changed since your ITIN was originally assigned, you will need to submit documentation to support your legal name change, such as a marriage certificate or a court order, which may include a divorce decree. Attach supporting documentation to Form W-7.
Will the IRS accept an older version of Form W-7 that has the words “Renew an ITIN that has been previously assigned” printed on it?
The IRS requires taxpayers to use the most recent version of Form W-7 that is available on IRS.gov. The applicant must indicate that they are renewing the ITIN, provide the ITIN number and the name under which it was assigned, and must indicate the reason why they are requesting the renewal (for tax purposes or to claim one of the exceptions to a declaration of taxes). If the applicant is requesting to renew the ITIN for reasons of an exception, they will need to attach the appropriate supporting documents. ITIN renewal is not a reason for an exception.
How long will it take to process the return if it is filed with an expired ITIN?
It is not possible to provide an exact time period for how long the return will be delayed because it will depend on whether it is the ITIN of the primary, secondary or dependent(s) on the return and what credits have been claimed. A return documented with a terminated ITIN will be handled, in any case, certain tax reductions or any exception asserted for the lapsed ITIN won’t be permitted. The citizen will get a notification from the IRS making sense of the change(s) made to the return and showing that the ITIN should be reestablished. When the ITIN is restored, any exclusion or credit that was beforehand not approved will be rethought around then. Until the ITIN is reestablished, the citizen will be liable to intrigue and punishments on any expense due because of the forswearing of credits and exclusions.
How would I recharge an ITIN that is going to terminate?
To recharge a terminating ITIN, you should present a finished Form W-7, Application for an IRS Individual Taxpayer Identification Number, give your US government expense form, alongside your unique reports distinguishing proof or duplicates affirmed by the responsible office, and some other required connections. Candidates should likewise choose the proper justification for which they need the ITIN, as definite in the Form W-7/W-7 directions (in Spanish). Mail the application to the Internal Revenue Service, ITIN Operations, and P.O. Box 149342, Austin, TX 78714-9342. See Question and Answer 16 for more data if you would rather not mail reports to the IRS. Assuming you recently presented a restoration solicitation and it was supported, once more, you don’t have to recharge.