Do You Need to Renew Your ITIN?
Article Highlights:
- Over 2 Million ITINs Require Renewal
- Failure to Renew Can Affect Tax Filings and Refunds in 2019
- W-7
- Family Renewal Option
- Three Ways to Renew
- Avoiding Common Mistakes
Failure to renew an ITIN in a timely manner can delay one’s ability to file a tax return, and with 2.7 million expected ITIN renewals, acting now to renew ITIN numbers will help taxpayers avoid delays that could affect their tax filing and refunds in 2019.
Under the Protecting Americans from Tax Hikes (PATH) Act, ITINs that have not been used on a federal tax return at least once in the last three consecutive years, as well as ITINs with specified middle digits (see below), will expire on Dec. 31, 2018. These affected taxpayers who expect to file a tax return in 2019 must submit a renewal application as soon as possible.
Who Needs to Renew Their ITIN?
- Taxpayers whose ITIN is expiring or whose ITIN includes the middle digits listed below and who need to file a tax return in 2019 must submit a Form W-7 renewal application. ITINs with the middle digits 73, 74, 75, 76, 77, 81 or 82 (for example: 9NN-73-NNNN) need to be renewed even if the taxpayer has used it in the last three years. Other ITIN holders do not need to take any action. The IRS has begun sending the CP-48 Notice, “You Must Renew Your Individual Taxpayer Identification Number (ITIN) to File Your U.S. Tax Return,” in early summer to affected taxpayers. The notice explains the steps to take to renew the ITIN if it will be included on a U.S. tax return filed in 2019. Taxpayers who receive this notice after taking action to renew their ITIN do not need to take further action, unless another family member is affected.
- ITINs with middle digits of 70, 71, 72, 78, 79 or 80 have previously expired. Taxpayers with these ITINs who haven’t previously gone through the renewal process can still renew at any time.
- Spouses or dependents residing inside the United States should renew their ITINs. However, spouses and dependents residing outside the United States do not need to renew their ITINs unless they anticipate being claimed for a tax benefit (for example, after they move to the United States) or unless they file their own tax return. That’s because the deduction for personal exemptions has been suspended for tax years 2018 through 2025 by the Tax Cuts and Jobs Act. Consequently, spouses or dependents outside the United States who would have been claimed for this personal exemption benefit and no other benefit do not need to renew their ITINs this year.
How to Renew an ITIN – To renew an ITIN, a taxpayer must complete a Form W-7 and submit all required documentation. Taxpayers submitting a Form W-7 to renew their ITIN are not required to attach a federal tax return. However, taxpayers must still note a reason for needing an ITIN on the Form W-7. See the Form W-7 instructions for detailed information.
There are three ways to submit the W-7 application package. Taxpayers can:
- Mail the Form W-7, along with original identification documents or copies certified by the agency that issued them, to the IRS address listed on Form W-7’s instructions. The IRS will review the identification documents and return them within 60 days.
- Work with Certified Acceptance Agents (CAAs) authorized by the IRS to help taxpayers apply for an ITIN. CAAs can authenticate all identification documents for primary and secondary taxpayers, verify that an ITIN application is correct before submitting it to the IRS for processing and authenticate the passports and birth certificates of dependents. This saves taxpayers from mailing original documents to the IRS.
- In advance, call and make an appointment at a designated IRS Taxpayer Assistance Center to have each applicant’s identity authenticated in person, instead of mailing original identification documents to the IRS. Applicants should bring a completed Form W-7 along with all required identification documents. See the TAC ITIN authentication page on the IRS website for more details.
Avoid Common Errors and Delays Next Year – Federal tax returns that are submitted in 2019 with an expired ITIN will be processed. However, certain tax credits and any exemptions will be disallowed. Taxpayers will receive a notice in the mail advising them of the change to their tax return and of their need to renew their ITIN. Once the ITIN is renewed, applicable credits and exemptions will be restored, and any refunds will be issued.
Additionally, several common errors can slow down and hold up some ITIN renewal applications. These mistakes generally center on missing information or insufficient supporting documentation, such as for name changes. The IRS urges any applicant to check over their form carefully before sending it to the IRS.
As a reminder, the IRS no longer accepts passports that do not have a date of entry into the U.S. as a standalone identification document for dependents from a country other than Canada or Mexico as well as for dependents of U.S. military personnel overseas. The dependent’s passport must have a date-of-entry stamp; otherwise, at least one the following documents to prove U.S. residency is required:
- U.S. medical records for dependents under age 6.
- U.S. school records for dependents aged 6 to 17.
- U.S. school records (if a student), rental statements, bank statements or utility bills listing the applicant’s name and U.S. address, if age 18 or over.
Want tax & accounting tips and insights?
Sign up for our newsletter.
I confirm this is a service inquiry and not an advertising message or solicitation. By
clicking “Submit”, I acknowledge and agree to the creation of an account and to the
and
.
I consent to receive SMS messages and agree with the
A Passion For the Alcohol Industry
Breweries & Distilleries
Breweries & Distilleries Are Our Specialty
At Oak City Payments, we have a deep understanding of the unique financial challenges and opportunities faced by breweries and distilleries. With nearly 15 years of experience in the alcohol industry, our team is passionate about this specialized sector. We're here to make sure your business thrives, whether you're crafting small batch bourbon in Asheville or craft beer in Wilmington. We know North Carolina -- and we know alcohol.
Expertise in Brewery and Distillery Operations
Our founder, Allen Jackson, has a background in the alcohol industry. HIs passion drives our commitment to supporting breweries and distilleries at every stage of their journey. Whether you're a startup craft brewery or an established distillery, we have the knowledge and resources to address your payroll, payments, and accounting needs.
Comprehensive Solutions for Alcohol Businesses
From payroll services specifically tailored to the unique needs of breweries and distilleries to wholesale solutions designed to optimize inventory management, Oak City Payments offers a suite of services to support your business. Our goal is to alleviate administrative burdens by providing the tools and support you need to focus on what you do best—crafting exceptional brews and spirits.
Trusted Partner in the Alcohol Industry
Oak City Payments is proud to be a trusted partner for breweries and distilleries across the Tar Heel State.. With our deep industry knowledge and personalized service, we are dedicated to helping alcohol businesses succeed and thrive in an increasingly competitive market. Cheers to a long-term partnership!
Let Oak City Payments relieve your stress today.
Fuquay-Varina-based Tax & Accounting Experts can help you with all areas of accounting, credit card processing, and payroll.