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Taxpayers with expiring ITINs Should Renew Now to Avoid Rush Later by Andrew Leonard, CPA

Posted on July 26, 2018 by Andrew Leonard

This summer, more than 2 million U.S. taxpayers will receive notices advising them that the Individual Taxpayer Identification Numbers (ITINs) previously issued to them by the IRS will expire by the end of 2018. Affected taxpayers include those individuals whose ITINs have the middle digits 73, 74, 75, 76, 77, 81 or 82, as well as anyone who did not use an ITIN on a federal tax return at least once in the past three years.

The IRS issues ITINs to people who have U.S. tax-filing and/or income-reporting obligations but do not have or are not eligible to receive a Social Security Number (SSN). Once an individual qualifies for an SSN, he or she should contact the IRS to merge their ITIN tax account into the new account.

Notice CP-48 provides affected taxpayers with directions for renewing their ITINs in order for them to file U.S. tax returns in 2019 and avoid delays in receiving any potential tax refund. The first step in the process requires that taxpayers complete and submit to the IRS Form W-7, Application for IRS Individual Taxpayer Identification Number, along with supporting documentation that authenticates their identities. To expedite this process and saves taxpayers the hassle of mailing original documents to the IRS, consideration should be given to working with Certified Acceptance Agents (CAAs) throughout the country who are authorized by the IRS to verify ITIN applications.

The IRS recommends that taxpayers affected by this notice also renew the ITINs for their spouses and children during this time, even if the family member’s ITIN does not expire this year. However, because the U.S. new tax laws eliminate personal exemptions for tax years 2018 through 2025, spouses and dependents who reside outside the United States do not need to renew their ITINs unless they anticipate filing their own U.S. tax return in 2019.

Berkowitz Pollack Brant is a Certified Acceptance Agent (CAAs) authorized by the IRS to help foreign individuals apply for and renew ITINs. The CPA firm’s advisors and accountants have deep experience helping domestic and foreign individuals and businesses comply with international tax laws, maximize tax efficiency and reduce unnecessary compliance costs.

About the Author: Andrew Leonard, CPA, is an associate director with Berkowitz Pollack Brant’s International Tax Services practice, where he focuses on pre- and post-immigration tax planning for individuals from South America, Asia and Europe and helps U.S. residents with foreign interests meet their filing disclosure requirements. He can be reached at the CPA firm’s Boca Raton, Fla., office at (561) 361-2000 or via email at info@bpbcpa.com.

 

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