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United States - IRS Accepting Renewal Applications for Expiring ITINs

U.S. - IRS Accepting Renewal Applications

This report covers a “Tax Tip” issued by the U.S. Internal Revenue Service advises taxpayers about renewal applications for Individual Taxpayer Identification Numbers.

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Flash Alert 2018-094

On June 27, 2018, the U.S. Internal Revenue Service (IRS) issued a “Tax Tip”1 to advise taxpayers that renewal applications for Individual Taxpayer Identification Numbers (ITINs) that expire at the end of 2018 are being accepted now. 

Any ITIN not used on a U.S. federal income tax return at least once in the last three consecutive years will expire on December 31, 2018.  In addition, ITINs with the middle digits of 73, 74, 75, 76, 77, 81 or 82 (xxx-73-xxxx; xxx-74-xxxx; etc.) need to be renewed even if the taxpayer has used it in the last three years.  Affected taxpayers who expect to file a U.S. federal tax return in 2019 must submit a renewal application. 

ITINs with middle digits of 70, 71, 72, or 80 expired in 2017.  Taxpayers with these ITIN numbers can renew at any time. (For prior coverage, see the following issues of GMS Flash Alert2017-111 (June 28, 2017) and 2016-111 (October 10, 2016).)

WHY THIS MATTERS

The renewal process for 2019 is beginning now, approximately the same time as last year.  Federal income tax returns that are submitted in 2019 with expired ITINs will be processed, but taxpayers will not be eligible to claim dependent credits and/or certain other tax credits until the ITINs are renewed. Affected taxpayers are encouraged to renew their ITINs early to avoid delays that could affect tax filings and refunds next year. 

Background

The ITIN is a tax identification number used, generally, by individuals who have U.S. income tax filing or payment obligations, but who are not eligible for a Social Security number.

In 2015, Congress passed the Protecting Americans from Tax Hikes (PATH) Act, which created an expiration schedule for ITINs.

Tax Tip 2018-99

The IRS Tax Tip provides guidance for renewing ITINs that have expired, or are set to expire, based on the expiration schedule included in the PATH Act.  Renewal notices will be sent to affected taxpayers later this summer. 

Affected taxpayers who need to file a tax return in 2019 are encouraged to renew their ITINs without delay.

FOOTNOTES

IRS Tax Tip 2018-99 (June 27, 2018) on the IRS website. 

2  P.L. 114-113.  For related coverage, see GMS Flash Alert 2015-152, December 23, 2015.

The above information is not intended to be "written advice concerning one or more Federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230 as the content of this document is issued for general informational purposes only.

The information contained in this newsletter was submitted by the KPMG International member firm in United States.

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