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Time to Renew ITIN

Ines Zemelman, EA

Ines Zemelman, EAAug-10-2017

ITINs with middle digits 70, 71, 72 or 80 are set to expire at the end of 2017. Ie - example, 2NN-72-NNNN)

More than 1 million taxpayers have expiring ITINs ---- the IRS has begun mailing CP48 notices which break down the steps needed to renew ITIN.

If your ITIN has not been used at last once in the last 3 consecutive years, they will expire Dec 31, 2017 as well. If your ITIN expired last year middle digits 78 and 79) - they can be renewed at any time.

What is an ITIN?

If you are not eligible for an SSN (Social Security Number) - but have a U.S tax filing obligation, you are required to obtain an ITIN.

The most common request to get an ITIN for our client base is for non-resident alien spouses. With an ITIN, the U.S. taxpayer can elect to file jointly with their non-US spouse (election under IRC § 6013(g). Married filing jointly is the most beneficial filing status, and can be utilized to substantially reduce tax due). Such an election would require the non-US spouse to report their worldwide income, but able to exclude their own $100k of foreign earnings, as well as utilize foreign tax paid. In some instances, this can yield great tax savings.

If you are eligible for SSN - you are not eligible for ITIN.

If you are eligible for an SSN - you will not be granted an ITIN as you need to file with your SSN. If you do not know it, please contact the Social security administration - www.SSA.gov

Family Plan - renew once for the whole clan

If you receive a renewal letter, you can renew the entire family’s ITINs together, even if the other members have ITINs with non-expiring middle digits.  Family members include tax filer, spouse, and dependents claimed on their tax return.

Get it right - avoid delays

If you file with an expired ITIN, your return will still be processed, but not in a manner favorable to you. Exemptions and credits available to you will not be processed - not an outcome we would advise.

Ines Zemelman, EA