Many ITINs Expire Jan. 1; Renew Now to Avoid Refund Delays

Time is running out for many ITIN holders who need to file a federal income tax return in 2017 and want to avoid a long wait for a refund, according to the Internal Revenue Service.
An Individual Taxpayer Identification Number (ITIN) is used by anyone who has tax-filing or payment obligations under U.S. law but is not eligible for a Social Security number. Under a recent law change by Congress, any ITIN not used on a tax return at least once in the past three years will expire on Jan. 1, 2017. In addition, any ITIN with middle digits of either 78 or 79 (9NN-78-NNNN or 9NN-79-NNNN) will also expire on that date.
This means that anyone with an expiring ITIN should act now to make sure they have a renewed ITIN in time to file a return during the upcoming tax season. Failure to do so will result in refund delays and possible loss of eligibility for some tax benefits until the ITIN is renewed.
The IRS said that an ITIN renewal application filed now is expected to lengthen to 11 weeks during tax season.


Source: Internal Revenue Service

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Changes to the ITIN Program

Today the IRS announced important changes to the ITIN program.

The new change may affect up to 400,000 ITIN holders, the changes require some taxpayers to renew their ITINs beginning in October 2016.

Who has to Renew an ITIN?

No action is needed by ITIN holders if they don’t need to file a tax return next year, however, there are two key groups of ITIN holders who may need to renew an ITIN so it will be in effect for returns filed in 2017.

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 October 1, 2016.

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.  The renewal period for these ITINs begins October 1, 2016.  The IRS will mail letters to this group of taxpayers starting August to inform them of the need to renew their ITINs if they need to file a tax return and explain steps they need to take.  The schedule for expiration and renewal of ITINs that do not have middle digits of 78 and 79 will be announced at a future date.

contact@officetaxservices.com

(858)247-1680