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 will expire Dec. 31, 2018. In addition, ITINs with middle digits 73, 74, 75, 76, 77, 81 or 82 will also expire at the end of the year. These affected taxpayers who expect to file a tax return in 2019 must submit a renewal application as soon as possible.
Who should renew an ITIN
- If your ITIN is expiring and you need to file a tax return in 2019, you must submit a renewal application. Others do not need to take any action.
- ITINs with the middle digits 73, 74, 75, 76, 77, 81 or 82 (For example: 9NN-73-NNNN) need to be renewed even if you have used it in the last three years. The IRS will begin 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 you will be using it to file a U.S. tax return in 2019. If you receive the notice after taking action to renew yourr ITIN, do not take further action unless another family member is affected.
- If you have an ITIN with middle digits of 70, 71, 72, 78, 79 or 80 and it has previously expired, you can still renew at any time.
- Due to the deduction for personal exemptions being suspended for tax years 2018 through 2025 by the Tax Cuts and Jobs Act, spouses or 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 if they file their own tax return. 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.
Family options available
Taxpayers with an ITIN that has middle digits 73, 74, 75, 76, 77, 81 or 82, as well as all previously expired ITINs, and have received a renewal letter from the IRS can choose to renew the family’s ITINs together, even if family members have an ITIN with middle digits that have not been identified for expiration. Family members include the tax filer, spouse and any dependents claimed on the tax return.
Renewing an ITIN
To renew an ITIN, a taxpayer must complete a Form W-7 and submit all required documentation. If you are submitting a Form W-7 to renew your ITIN, you are not required to attach a federal tax return. However, you must still note a reason for needing an ITIN on the Form W-7.
There are three ways to submit the W-7 application package:
- 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 the Form W-7 instructions. The IRS will review the identification documents and return them within 60 days.
- Work with Certifying Acceptance Agents (CAAs) authorized by the IRS. 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 for dependents.
- 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 for more details.
Common mistakes and delays to avoid 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 their need to renew their ITIN. Once the ITIN is renewed, applicable credits, exemptions, and refunds will be issued.
Several common mistakes can slow down and hold some ITIN renewal applications. They generally center on missing information or insufficient supporting documentation, such as name changes. It is best to check over your form carefully before sending it to the IRS.
The IRS no longer accepts passports that do not have a date of entry into the U.S. as the sole identification document for dependents from a country other than Canada or Mexico, or dependents of U.S. military personnel overseas. The dependent’s passport must have a date of entry stamp, otherwise the following additional documents to prove U.S. residency are required:
- U.S. medical records for dependents under age 6,
- U.S. school records for dependents under age 18, and
- U.S. school records (if a student), rental statements, bank statements or utility bills listing the applicant’s name and U.S. address, if over age 18.