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IRS Official Gives Update on ITIN Expiration, Renewal Process

JUN. 21, 2017

IRS Official Gives Update on ITIN Expiration, Renewal Process

DATED JUN. 21, 2017
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Press Remarks: PATH Act ITIN Changes

Kenneth Corbin, IRS Commissioner, Wage & Investment Division

June 2017

Thanks for joining us. Today we have an update on the Individual Taxpayer Identification Number expiration and renewal process we announced last year. As a reminder, The Protecting Americans from Tax Hikes or PATH Act of 2015 required the expiration of some ITINs. We have a new group of ITINs that will expire at the end of this year. We’ll explain who is affected and what they need to do to make sure their ITINs remain valid for filing federal tax returns in 2018.

The ITIN program remains an important part of our tax system; it’s critical to helping millions of people meet their U.S. tax obligations. ITINs are used by those who have tax filing or payment obligations under U.S. law but don’t qualify for a Social Security Number. That includes people such as foreign nationals and resident aliens.

These expirations being announced represent IRS’ continued effort to implement legislation included in the PATH Act. These steps are designed to protect this important program.

Today, the IRS will issue a news release outlining additional expiring ITINS and explaining what taxpayers need to do to renew their ITINs and ensure they continue to be able to file timely tax returns.

We are making improvements to the renewal process. A critical part is starting the renewal process this year much earlier — it’s now available starting in June rather than October.

We wanted to ensure ITIN holders were able to get the assistance they need and we’ve taken measures to sufficiently increase the number of employees available to process these renewal applications. We continue to be committed to raising awareness about the new ITIN rules. We will be actively communicating with the public, outreach groups, our stakeholders and partners in the tax community, seeking their assistance in sharing information about ITINs. In the coming days, we will distribute updated information and outreach material about the renewal process on our special ITIN page on IRS.gov.

I want to emphasize that not everyone with an ITIN has to take action. The changes we’re talking about apply to two groups of ITIN holders:

  • The first group encompasses people who haven’t used their ITINs on a federal tax return at all in the last three years. That means they haven’t been used on a tax return in 2014, 2015 or 2016. Taxpayers in this group will see their ITIN expire at the end of 2017. The renewal period for all holders of expiring ITINs begins immediately. But taxpayers only need to renew if they plan to file a 2017 tax return next year.

  • The other affected group involves people who have an ITIN that was issued before 2013. We will continue to expire pre-2013 ITIN numbers on a rolling basis until all have been expired, and become eligible for renewal. The ITIN holders up for renewal in this group will be people who have ITINs with middle digits of 70, 71, 72 or 80. Later this summer, the IRS will begin mailing CP-48 Notices to these taxpayers explaining what they need to do to renew their ITINs. We expect approximately 1.3million taxpayers to be affected by these middle-digit expirations.

ITIN holders in these two groups can find more information by visiting irs.gov/ITIN. The information is available today in English, Spanish and Chinese. Russian, Korean, Haitian Creole and Vietnamese will be available shortly. Taxpayers who have an ITIN that’s going to expire this year, or is already expired, should not delay. Applying now during non-peak season will ensure the quickest service. They should allow 7 weeks from the mailing date of their Form W-7, for the IRS to notify them of their ITIN application status. If the application is submitted during peak processing periods, January 15 through April 30, or if they’re filing from overseas, they should allow 9 to 11 weeks.

The bottom line is that it’s critical to renew ITINs as soon as possible this summer. The sooner they submit their application, the sooner their ITIN can be renewed.

Later this summer, we will be mailing the CP-48 Notice, You must renew your Individual Taxpayer Identification Number (ITIN) to file your U.S. tax return, to all ITIN holders whose middle digits contain the numbers 70, 71, 72 or 80, and have filed a tax return at least once in the last three years. There’s no need for a taxpayer to wait for that letter to submit their renewal package. A current ITIN is required in order to file a federal tax return in 2018. Here’s an important point: If taxpayers have an expired ITIN and don’t renew before filing a tax return next year, they could face a refund delay. In addition, they may be ineligible for certain tax credits, such as the Child Tax Credit and the American Opportunity Tax Credit, until the ITIN is renewed. To renew an ITIN, taxpayers must complete a Form W-7, Application for IRS Individual Taxpayer Identification Number (Rev 9-2016). They should follow the instructions and include all information and documentation required. There’s one important exception to those procedures: To help reduce burden and make this easier on taxpayers, we’re waiving the requirement to attach a tax return to the W-7 if taxpayers are renewing.

There are three options for submitting the W-7 application package to the IRS:

  • Mail it;

  • Use one of the many IRS authorized Certified Acceptance Agents around the country; or

  • Deliver it in person by calling ahead and making an appointment at one of our designated Taxpayer Assistance Centers. Most TACs offer assistance with the W-7.

I also want to mention what the IRS is doing to help reduce the paperwork burden on households where several people will need to renew their ITIN. We created something called the family option last year, and we are offering it again this year. Here’s how it works:

If any individual having an ITIN middle digit of 70, 71, 72 or 80 receives a CP-48 Notice from the IRS, they can choose to renew the ITINs of all of their family members at the same time. Any taxpayer who’s ITIN is expiring can do the same. This avoids the hassle of doing these separately over several years. Family members include the tax filer, the filer’s spouse and any dependents claimed on their tax return.

Going forward, the IRS will continue doing everything we can to help make renewing an ITIN as simple and straightforward as possible. And we’ll continue working with our partners across the country. We want to make sure that everyone with an expiring ITIN gets the renewal information and understands what steps they need to take to renew.

Thank you, and I’ll be happy to take questions.

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