Individual Taxpayer Identification Numbers Set to Expire
Individual Taxpayer Identification Numbers (ITINs) are crucial for many individuals with tax responsibilities in the US. The IRS has called for the early renewal of ITINs to avoid tax refund delays.
These numbers are issued to individuals who are not eligible for a Social Security Number, but do have tax filing or payment obligations under US law. Reasons an individual may need an ITIN can include:
- Rental income from or a sale of a US property
- Spouse of a US citizen filing a joint return
- Non-resident claiming treaty benefits
- Filing a US tax return (to report US taxable income)
- Income from US Investments or Pension
- Joining a US partnership
On 31 December this year, over one million ITINs are going to expire. The ITINs that will expire are ones that have:
- Not been used at least once in the last three consecutive years
- Been issued before 2013
- Middle digits 88
- Middle digits 90, 91, 92, 94, 95, 96, 97, 98 or 99 that were assigned before 2013 and have not been renewed
If your ITIN is set to expire, you do not have to wait for the IRS to send a notice of expiration. It is vital that you renew immediately to prevent tax refund delays. To renew an ITIN, individuals must complete a Form W-7 and submit all required documentation, including a passport.
Our Senior Tax Manager, Robert McGuire, is an IRS Certified Acceptance Agent and can assist with both initial and renewal applications. The benefits of using a Certified Acceptance Agent include not sending your passport to the US for a lengthy period to be processed and a more accurate application completion, using our expertise and minimising the risk of rejection. In addition to this Rob specialises in US/UK tax advice and compliance and therefore will also be able to assist with any more complex queries and US tax return compliance.
Should you wish to discuss anything in more detail, please complete our online contact form, email us at enquiries@sopherco.com or call 020 8207 0602.