Here at Polston, we accommodate our vast tax expertise to any situation our clients might face. Today’s blog post is for any of our clients that don’t have a Social Security Number, and instead have an ITIN. ITIN stands for Individual Taxpayer Identification Number, and is used by the IRS to identify taxpayers who are obligated to pay taxes but do not have, and cannot legally obtain, a SSN. If you’re an ITIN holder and you need to file a tax return in 2017, you may need to renew your ITIN.
You Do Not Need to Renew If:
- You are a US Citizen, (or have recently become one).
- You only intend to use your ITIN on an information return (such as a 1099) that is filed with a third party.
- You won’t use the ITIN with middle digits of 78 or 79 on a U.S. tax return.
You Do Need to Renew If:
- If you’re filing a tax return in 2017, and your ITIN hasn’t been used on a federal income tax return in the last three years, you need to renew. In addition, if you’ve received a letter from the IRS, labeled 5821, you need to renew.
- If your ITIN contains the middle digits 78 or 79 (for example: xxx-78-xxxx; xxx-79-xxxx), you need to renew even if you’ve already renewed within the last three years. The good news though, is that you can renew for your entire family at the same time. If you’ve received your 5821 letters from the IRS, then you’ll be able to renew family members together even if their ITINs don’t contain the middle digits 78 or 79. (Family members are defined as the tax filer, spouse, and any dependents claimed on a return.)
If you do not renew, your ITIN will expire January 1, 2017.
How Can I Renew my ITIN?
In order to renew an ITIN, a taxpayer must fill out a Form W-7, an ITIN application form. In addition to your form, include any required documents, such as a passport, driver’s license, or USCIS documentation. Any documentation you send must be official and current. Once you have filled out and attached everything you need, there are three ways to submit your W-7 application:
First, you can mail it in, along with any identification documents you need. The recipient address will be listed on the W-7 instruction sheet, and any documents you send will be returned to you within 60 days.
Or if you prefer, you can work with a Certified Acceptance Agent (or CAA), third-party organizations that the IRS has authorized to assist taxpayers with their ITIN applications. CAAs will review all ITIN application documents for the original taxpayer, and any passports or birth certificates for dependents. The CAA will verify that all information is correct, and submit it to the IRS.
Lastly, you can always reach out to an IRS Taxpayer Assistance Center, instead of reaching out to the IRS directly.
Or, you can always speak with the attorneys at Polston. If we’re unable to help, we will guide you towards someone that is. Be sure to browse our services page and fill out the form for a free consultation. Or give us a call at 844-841-9857.
Additional Readings
As a business owner, you know everything there is to know about your industry. You could be an expert on your specific business, but how much do you know about business taxes? If you are like other business owners, you might not know a lot. Luckily, there are professionals who can guide you through the basic and specific tax...
If your loved one recently passed away, you may have many questions about filing income tax for them. Perhaps the most important thing is to understand that you are not alone. Dealing with a deceased’s unpaid taxes can be challenging. For example, who is responsible for paying taxes when someone dies? Do IRS debts go...
If you have a tax balance with the IRS, you may be wondering if you can get a passport. While having your passport renewal denied or revoked is a possibility, it depends on the amount you owe the IRS. If your taxes become seriously delinquent, the IRS can take action against you, leading to the...
Most employers in the United States completely shut down or suspended operations during the COVID-19 pandemic. To help such businesses, the federal government implemented various policies, including the Employee Retention Tax Credit (ERTC) or Employee Retention Credit (ERC) program. However, it can take the IRS months to process claims because of the number of applications the...
If you’re a small business owner, you’ve probably heard about sales tax. Knowing how to collect, record and remit sales tax can be complicated, especially as your business grows. Keeping up with changing tax regulations can also be challenging. Paying sales tax for your small business is essential because failing to do so can result...
The Employee Retention Credit (ERC), also known as the Employee Retention Tax Credit (ERTC), will unveil some major changes at the start of 2024. Starting in September of 2023, the IRS Commissioner placed a moratorium on new ERC applications through the end of the year, giving the IRS time to update its guidelines and develop a new...