The PATH Act (Protecting Americans from Tax Hikes) significantly affects taxpayers who use an Individual Taxpayer Identification Number (ITIN).
According to the Internal Revenue System, many ITINs have already expired. The IRS urges individuals to renew their number ASAP to avoid processing and refund delays when they start filing their tax returns this financial year.
But the question is: how to renew ITIN number?
Many people are still confused about the renewal process of ITIN, and that's why they don't renew their ITIN numbers.
If you're also facing this same issue, don't worry.
In this post, we'll show you how to renew an ITIN number and will answer some of the most frequently asked questions about ITIN.
Can You Renew Your ITIN By Yourself?
If your ITIN number has expired or is close to the expiry date, you need to go for its renewal process.
You can apply to renew your number on your own, regardless of the duration of its expiry. The overall process is relatively simple as it is much similar to applying for an ITIN for the first time.
To renew an ITIN, you need a Form W-7 (Application for IRS Individual Taxpayer Identification Number), fill it appropriately, and send it to the IRS along with all the necessary documents required.
In case you have received a CP48, or Notice 5821 as intimation for the expired or expiring ITIN number, attach it with the form and submit it along with the ITIN renewal application.
Remember to check the 'Renew an Existing ITIN' box at the top of the application form and the reason for submitting the renewal form.
You can submit the W-7 application in the following ways:
- You can mail your W-7 duly filled form along with all identification documents and certified copies, certified by the agency that issued them, to the IRS office. Note that tax return is not to be included with a W-7 renewal application for an ITIN.
- You can opt to take the services of IRS authorized acceptance agents or certified acceptance agents. They will help verify some of your documents and guide you through the renewal process.
- You can get an appointment at an IRS Taxpayer Assistance Center. These are specially designated to verify some identification documents so that there is no requirement to mail the original documents to the IRS office.
However, to make the overall renewal process easier, IRS also offers a family option for your ITIN renewal, where you can go for the renewal of your family members at the same time.
And this saves a lot of time.
The family ITIN renewal option allows other family members with ITINs to renew at the same time if their ITINs have expired or are expiring this year.
Documents Required to Renew ITIN Number
When applying for renewal of your ITIN number, you have to submit some documents to prove your identity and foreign status. These documents can be in original or certified copies from the issuing authorities, along with the passport.
You need to submit at least a combination of two from the following:
- A national I.D. card
- U.S. driver's license
- A foreign driver's license
- Birth certificate
- U.S. State ID card
- U.S. military I.D. card
- Foreign voter's I.D. card
- Foreign military I.D. card
- Immigration visa
- Medical records (valid for dependents under 14 and under 18 if they are a student)
- School records
While submitting the documents, ensure that they are valid and have not expired. Once you have collected the documents, you must send them to the IRS, attached with your W-7 form.
However, there are some special requirements by the IRS for these documents. For example, some documents may require your photo, while others may not.
An experienced tax accountant can guide you on what counts as acceptable in your particular case and thus ensure that your application is not rejected.
Moreover, for the dependents, a passport can no longer be used as an identification document, especially when it doesn't carry the date of entry in the USA. So, along with the passport, an individual has to submit some documents that prove their identity.
Does it Cost to Renew ITIN Number?
ITIN number application and renewal are absolutely free. There is no need to pay anything when you file a federal tax return at participating locations nationwide. When you apply for the renewal on your own, it doesn't cost you anything.
However, the ITIN application requires some documents. Getting these documents can cost you money.
For example, you have to pay to get your tax return prepared. Similarly, when your identification is only your passport, you have to submit it in the original form for the renewal process. This means that you would have to stay without your passport for a period, which can cause an issue.
Some service providers can verify the authenticity, submit the application on your behalf, and ensure faster documentation so that you are not without your identification documents for an extended period.
In fact, we at e-delaware also offer hassle-free ITIN services at a very affordable cost.
How Long Does it Take to Renew ITIN Number?
ITIN renewal usually takes anywhere between 7-11 weeks after you have mailed your W-7 form. The IRS requires time to process and check your documents for your ITIN renewal.
If you qualify for the new ITIN or have applied for the renewal, you will receive a letter from the IRS, usually within seven weeks.
If in case you don't receive any intimation within the stipulated time, you can enquire the IRS office for the status of your application on their official numbers.
The IRS number is 1-800-829-1040 (Toll-Free) when dialed within the U.S., and those who are calling from outside of the U.S. will have to dial 267-941-1000 (not Toll-Free).
How Long is ITIN Valid For?
An ITIN number will expire if you haven't used it at least once in the last three years. Below are the two expiration rules for an ITIN number declared by the PATH.
- The Three Years Rule: If an ITIN is not used for the last three consecutive years, it will expire, due to non-usage of the ITIN number. For example, if you have received an ITIN number in 2016 and used it for your tax returns to file federal taxes. But because of some reason, you couldn't use it in 2017, 2018, and 2019. Then your ITIN will expire on 31st December of the third year.
The three-year rule of ITIN expiration affects all ITIN numbers regardless of the year they were issued.
- Expiry rules for ITINs Issued Before 2013
ITINs that were issued before 2013 expire on a rolling basis. The schedule for which these ITINs expire is:
- All ITINs issued before 2008 have expired as of now.
- ITIN with middle digits 70, 71, 72, 73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, and 88 have also expired by the year 2020.
- ITIN assigned before 2013 and has middle digits 90, 91, 92, 94, 95, 96, 97, 98, or 99 has also expired.
The IRS has already mailed notices to these ITIN holders to renew their numbers.
If you plan to file a tax return in 2022 and fall in the above category, it is strongly recommended to renew your ITIN well within the time. Otherwise, you are likely to experience processing delays and face problems with the refunds and tax credits.
How Can You Check If Your ITIN is Active?
If you want to check your ITIN status, you can call the IRS office on 1-800-829-1040.
While calling, ensure to keep all your information ready so that when they enquire for anything, you can answer them appropriately.
The IRS will verify your identity and will tell you about your ITIN status, whether it is active or not.
How to Renew Your ITIN Number?
If your ITIN number has expired or is close to the expiring date, you need to renew it to help file your tax returns without causing you any problems. You have to submit a completed Form W-7 (Application for IRS Individual Taxpayer Identification Number), along with supporting original or certified documents, identification papers, and other necessary attachments.
Conclusion
Once you know that your ITIN has expired or is close to the expiry date, this is the time for you to start the renewal process.
Even if an ITIN number has expired for a long time, you can apply to renew it.
Whether you are a resident whose ITIN has expired and needs to be renewed or a foreigner involved with any financial transactions, you need a valid ITIN number to file your tax returns.
You can apply for the same on your own or can also opt for comprehensive ITIN renewal services available to make the overall process smooth and without any difficulty.
Remember that if you use an expired ITIN on your U.S. tax return, it will not hamper the filing process and will also be treated as a timely filed.
But it will be processed without any exemptions and credit claims. This means that no refunds will be paid at that time.
If you're still confused, you can contact our team, and we would be happy to help you out.
