ITIN Application Process Changes from PATH Act of 2015

The Internal Revenue Service (“IRS”) announced today important changes to help taxpayers comply with revisions to the Individual Taxpayer Identification Number (“ITIN”) program.

The ITIN program changes require some taxpayers to renew their ITINs beginning in October. These changes are required by the Protecting Americans from Tax Hikes (“PATH”) Act enacted by Congress in December 2015.

The new provisions, along with new procedures to help taxpayers navigate these changes, are outlined in IRS Notice 2016-48, which was released today.

Porter Law Office, LLC is a Certifying Acceptance Agent (“CAA”) in Columbus, Ohio that assists taxpayers with ITIN applications (Form W-7). If you need an ITIN contact our office today.

What are the ITIN program changes?

The new law requires individuals to renew their ITIN if their ITINs have not been used on a federal tax return at least once in the last three years. In addition, ITINs issued prior to 2013 that have been used on a federal tax return in the last three years will need to be renewed starting this fall. The IRS is putting in place a rolling renewal schedule, which is described below, to assist taxpayers.

What happens if I do not renew my ITIN?

If you have an expired ITIN and don’t renew before filing a tax return next year, you could face a refund delay. You could also be ineligible for certain tax credits (such as the Child Tax Credit or the American Opportunity Tax Credit) until the ITIN is renewed.

Do I have to renew my ITIN?

If you do not have to file a tax return next year, you don’t need to take any action. If you, however, are a member of one of the following two groups of ITIN holders, you may need to renew your ITIN before the 2017 return filing season:

1. Unused ITINs. ITINs not used on a federal income tax return in the last three years (that is, 2013, 2014, or 2015) will no longer be valid to use on a tax return as of Jan. 1, 2017. ITIN holders in this group who need to file a tax return next year will need to renew their ITINs. The renewal period begins Oct. 1, 2016.
2. Expiring ITINs. ITINs issued before 2013 will begin expiring this year, and taxpayers will need to renew them on a rolling basis. The first ITINs that will expire under this schedule are those with middle digits of 78 and 79 (Example: 9XX-78-XXXX). The renewal period for these ITINs begins Oct. 1, 2016. Beginning this summer, the IRS will send a Letter 5821 to individuals holding ITINs with middle digits 78 or 79 if the ITIN was used for a taxpayer or dependent on a U.S. income tax return in any of the last three consecutive years. The schedule for expiration and renewal of ITINs that do not have middle digits of 78 and 79 will be announced at a future date.

How do I renew my ITIN?

To renew an ITIN, you will need to file Form W-7 with supporting documentation starting Oct. 1, 2016. Use the most recent version of the Form W-7 and check the box “renewal.” Alternatively, individuals who receive Letter 5821 may wait to submit their Form W-7 with their tax return. Once a Form W-7 renewal application is approved, the individual’s ITIN will again be effective, and the individual can continue to use the same ITIN.

There are three methods taxpayers can use to submit their W-7 application package to renew their ITIN. They can:

1. Mail Form W-7 — along with the original identification documents or certified copies by the agency that issued them — to the IRS address listed on the form (identification documents will be returned within 60 days),
2. Use one of the many IRS authorized Certified Acceptance Agents (like Porter Law Office, LLC) or Acceptance Agents around the country, or
3. In advance, call and make an appointment at an IRS Taxpayer Assistance Center in lieu of mailing original identification documents to the IRS.

Family Option to Help Taxpayers

The IRS recognizes that this process may be burdensome. The IRS will be offering a family option for ITIN renewal. If you have an ITIN with middle digit of 78 or 79, you can choose to renew the ITINs of all of their family members at the same time. As a result, you can avoid having to file separate W-7 renewals over several years. Family members include the tax filer, the spouse and any dependents claimed on their tax return.

You are encouraged to plan ahead and take action this fall to avoid issues when you file your return in 2017.

New requirement for dependents whose passports do not have a date of entry into the U.S.

Finally, also starting Oct. 1, 2016, the IRS will no longer accept passports that do not have a date of entry into the U.S. as a stand-alone identification document for certain dependents. Unless you are from Canada or Mexico or dependents of military members overseas, you will be affected by this rule.

If you are affected, you will need to submit either U.S. medical records for dependents under age six or U.S. school records for dependents under age 18, along with the passport. Dependents aged 18 and over can submit a rental or bank statement or a utility bill listing the applicant’s name and U.S. address, along with their passport.

Contact an Experienced Ohio Tax Attorney and CAA

Apply for an ITIN | Certifying Acceptance Agent in Columbus, Ohio

Porter Law Office, LLC is a Certifying Acceptance Agent in Columbus, Ohio. Porter Law Office, LLC will handle all aspects of your ITIN application. As a Certifying Acceptance Agent, Porter Law Office, LLC can also verify your supporting documents. A major benefit in utilizing Porter Law Office, LLC as your CAA for ITIN processing is that you can keep your original documents. Contact the Columbus, Ohio Certifying Acceptance Agent at Porter Law Office, LLC today to schedule an appointment to apply for an IRS ITIN number.