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ITINs Set To Expire Dec 31 2017 - Time To Renew

ITINs Set To Expire Dec 31 2017 - Time To Renew
Ines Zemelman, EA
07 December 2017

9N-72-NNNN - Does your ITIN look like this? It may be expiring on Dec 31 2017

ITINs are tax identification numbers for those that do not have a Social Security Number (SSN) and are not eligible for one. Each year, millions of ITINs expire and must be renewed. At the end of 2017, ITINs with middle digits 70, 71, 72, or 80 (For example: 9NN-71-NNNN) need to be renewed if the taxpayer will have a filing requirement in 2018.

This affects more than 1 million people, and disproportionately affects those residing abroad, as ITINs are only issued for those who are not eligible for a SSN.

As such, many ITIN holders who have a 2017 federal tax filing requirement, often to claim a refund, will need to renew their ITINs before filing. Do not delay, as allowing your ITIN to lapse will result in refund delays and possible loss of eligibility for some tax benefits until the ITIN is renewed.

Generally, the renewal process takes as few as 7 weeks, but given the sheer magnitude of expiring ITINs (1 million plus) we expect this to take almost 3 months.

Don’t let errors on Form W-7 delay your refund

The first step of IT support is to make sure that the machine is plugged in. In tax world, an applicable scenario is to make sure you are using the latest version of Form W-7. Incorrectly completed forms, & insufficient supporting documentation are common mistakes you can avoid. Here are some quick tips:

Make sure you select the right type of form --- renewal

Select the proper reason for your filing the form. ITIN renewal is not a valid reason

Proper documentation, especially for dependents

Include original supporting and required identification documentation, or certified copies from the issuing agency to prove foreign status and identity.

Starting last year, only a passport with a U.S. entry date is now acceptable as a stand-alone identification document for dependents.

Additional documentation will be necessary for dependent ITIN applicants who use a passport that does not have a U.S. entry date. Acceptable documents include the following

1. If under age 6, a U.S. medical record.

2. If under age 18, a U.S. school record.

3. If at least age 18, a U.S. school record for anyone who is a student.  Otherwise, anyone 18 and over can provide a rental or bank statement or a utility bill listing the applicant’s name and U.S. address.

Exemption to the stricter documentation for dependents apply for dependents from military stationed overseas, or non-military personnel in Canada or Mexico.

Ines Zemelman, EA
founder of Taxes for Expats