ITIN Renewals Begin in October 2016
The Internal Revenue Service announced important changes to help taxpayers comply with revisions to the Individual Taxpayer Identification Number (ITIN) program made under the new PATH (Protecting Americans from Tax Hikes) law.
The changes require some taxpayers to renew their ITINs beginning in October 2016.
Who Has to Renew an ITIN?
There are TWO key groups of ITIN holders who may need to renew an ITIN:
1. Unused ITINS.
ITINs not used on a federal income tax return in the last three years (covering 2013, 2014, or 2015) will no longer be valid to use on a tax return as of Jan. 1, 2017. ITIN holders in this group who need to file a tax return next year will need to renew their ITINs. The renewal period begins Oct. 1, 2016.
2. Expiring ITINS.
ITINs issued before 2013 will begin expiring this year, and taxpayers will need to renew them on a rolling basis. The first ITINs that will expire under this schedule are those with middle digits of 78 and 79 (Example: 9XX-78-XXXX). The renewal period for these ITINs begins Oct. 1, 2016.
If taxpayers have an expired ITIN and don’t renew before filing a tax return next year, they could face a refund delay and may be ineligible for certain tax credits, such as the Child Tax Credit and the American Opportunity Tax Credit, until the ITIN is renewed.
How to Renew an ITIN
Use the service of one of the many IRS authorized Certified Acceptance Agents (such as- Affordable Accounting Solutions, Philadelphia, Pa. (See address on the top of this page).
There are few other methods taxpayers can renew their ITIN, for details, check the IRS website.
The IRS will be offering a family option for ITIN renewal. If any individual having an ITIN middle digit of 78 or 79 receives a renewal letter from the IRS, they can choose to renew the ITINs of all of their family members at the same time rather than doing them separately over several years. Family members include the tax filer, the spouse and any dependents claimed on their tax return.
For additional information visit the ITIN info page on IRS.gov