Do Tax ID Numbers Expire and When Do You Need a New One?

A Tax ID Number (TIN) serves as a unique identifier for individuals and entities in their interactions with tax authorities. These numbers are fundamental for reporting income, filing tax returns, and ensuring compliance with federal tax laws. While generally permanent, certain exceptions exist regarding their validity. Understanding these distinctions helps taxpayers navigate their obligations effectively and avoid potential processing delays.

Types of Tax ID Numbers and Their Expiration Status

Different types of Tax ID Numbers are issued for various purposes, each with distinct rules concerning its duration. A Social Security Number (SSN) is a nine-digit number issued to citizens and eligible non-citizens for identification and employment purposes. An SSN is assigned for an individual’s lifetime and does not expire.

An Employer Identification Number (EIN) is a nine-digit number assigned by the Internal Revenue Service (IRS) to businesses. It functions as a business’s unique identifier for tax purposes, similar to an SSN for an individual. An EIN does not expire and remains associated with the entity.

An Individual Taxpayer Identification Number (ITIN) is issued to non-citizens and others who need a U.S. taxpayer identification number but are not eligible for an SSN. Unlike SSNs and EINs, ITINs can expire. An ITIN will expire if it is not used on a U.S. federal tax return for three consecutive tax years.

An Adoption Taxpayer Identification Number (ATIN) is a temporary nine-digit number issued for a child being legally adopted who does not yet have an SSN. An ATIN is valid for two years from its assignment date. It is deactivated once an SSN is issued for the child, or automatically after two years if an SSN is not obtained and the IRS is not notified.

Situations Requiring a New Tax ID Number

Even if a Tax ID Number does not expire, certain changes in an individual’s or entity’s circumstances can necessitate obtaining a new one. For businesses, a new EIN is required when there is a significant change in the entity’s legal structure or ownership. For instance, converting a sole proprietorship to a partnership or corporation requires a new EIN. A new EIN is needed if a business merges to form a new corporation, or if a sole proprietorship is purchased or inherited and operated as a sole proprietorship.

Ownership changes, such as a partnership dissolving and a new partnership forming, trigger the need for a new EIN. If a single-member Limited Liability Company (LLC) elects to be taxed as a corporation or S corporation, or if it becomes a multi-member LLC, a new EIN is required. These requirements reflect the IRS’s need to track distinct legal and tax entities.

For individuals, a new ITIN may be needed if an existing one has expired due to non-use on federal tax returns for three consecutive years and the individual needs to file again. An individual who previously used an ITIN may need a new number if they become eligible for and obtain an SSN. In such cases, the SSN replaces the ITIN for tax purposes, and the IRS should be notified to combine tax records under the new SSN.

Verifying and Maintaining Your Tax ID Numbers

Confirming the status of a Tax ID Number and understanding any maintenance requirements helps ensure smooth tax compliance. For SSNs and EINs, verification or maintenance is not required due to their permanent nature. These numbers remain valid indefinitely unless specific issues arise, such as identity theft, which would involve separate procedures with the Social Security Administration or the IRS.

ITIN holders should regularly check their ITIN’s status, particularly if it has not been used recently. The IRS sends notices to inform individuals when their ITIN is approaching expiration. To determine if an ITIN has expired or to confirm its validity, individuals can review their IRS online account or contact the IRS directly via phone.

Renewing an expired ITIN involves submitting Form W-7, Application for IRS Individual Taxpayer Identification Number, along with required identification documents. This process is similar to applying for an ITIN for the first time. An expired ITIN must be renewed if it will be included on a U.S. federal tax return to avoid processing delays and potential loss of tax credits.