A Quick and Basic Guide for Taxpayers with Expiring ITINs

There are over 2 million Individual Taxpayer Identification Numbers (ITINs) today that are soon to expire by the end of 2018. The IRS encouraged taxpayers to hurry in processing and submitting their applications for renewal in order to avoid the delay of refunds next year.

Since the IRS expect an influx of W-7 applications in the third year of the renewal program, they increased the number of their staffs to handle them. About 2.7 million taxpayers will be affected in the third wave of expiring ITINs. The renewal process for 2019 is going to be earlier than last year to help out taxpayers.

David Kautter the Acting IRS Commissioner expressed his concern towards taxpayers who will be affected by ITIN changes and encourage them to take care of their ITINS as soon as possible as a step for next year’s tax preparation. Tax filing and refunds in 2019 are going to be so much easier and hassle-free if taxpayers will act now to renew their ITIN numbers. Partner groups across the nation are encouraged to offer help and share information to individuals with ITIN numbers that are expiring soon.

Which ITINs will expire soon?

The expiration date for ITINs that have not been used in filing a federal tax return at least once in the last three consecutive years will be on December 31, 2018. This is under the Protecting Americans from Tax Hikes (PATH) Act. ITINs with middle digits 73, 74, 75, 76, 77, 81 or 82 at the end of the year will also expire. A renewal of application must be submitted as soon as possible for taxpayers who are affected by the ITIN expiration to be able to file their tax return in 2018. Just to be specific, ITINs with middle digits 78 and 79 that expired at the of last year can be renewed by taxpayers anytime.

What is the use of ITIN?

People who have tax filing or payment obligations under U.S Law but who do not qualify for a Social Security number are the ones required to use ITINs. If you have any questions regarding the usage of ITIN, you may visit IRS.gov and look for the ITIN information page to find and further understand it’s guidelines.

What assistance does the IRS offer to taxpayers?

In order to help taxpayers, the IRS launched a nationwide education effort once again to share information for ITIN holders. There is a wide variety of informational materials such as flyers and fact sheets that are made available in different languages found on IRS.gov. The agency is also working with partner groups and others in the ITIN community for these important changes and information to be spread out.

Who should renew an ITIN?

• If you have an ITIN that is about to expire soon and you just need to file a tax return in 2018, you are required to submit a renewal application. Regardless if the taxpayer has used ITINs with middle digits 73, 74, 75, 76, 77, 81 or 82 in the last years, a renewal application is still required. The CP-48 Notice will be sent by the IRS to you as well. The purpose of the notice is to let taxpayers know that they need to renew the ITIN if they are going to use their ITIN when filing their tax return in 2019. Unless another family member is affected, taxpayers who received the notice no longer have to do anything in renewing their ITIN.
• Those ITINs with middle digits 70, 71, 72, 78, 79 or 80 that have previously expire can still be renewed at any time by the taxpayer.
• Spouses or dependents living within the United States are required to renew their ITINs. Those who live outside the U.S do not need to do anything unless they’re expecting to be claimed for a tax benefit or if they file their own tax return, their ITINs must be renewed. The reason why this is the case is that personal exemptions deductions are stopped for tax years 2018 to 2025 under the Tax Cuts and Jobs Act. However, spouses or dependents living outside the United States who would have been claimed for this personal exemption benefit and no other benefits do not have to worry about renewing their ITINs this year anymore.