When to Renew Your ITIN: A Simple Breakdown

An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the U.S. Internal Revenue Service (IRS). It is for individuals who need a U.S. taxpayer identification number but are not eligible for a Social Security number (SSN). An ITIN allows for tax compliance, enabling individuals to file federal tax returns and claim applicable tax benefits. It does not confer immigration status or authorize employment in the U.S. Understanding when and how to renew an ITIN is important for maintaining tax compliance and avoiding disruptions in tax processing.

Understanding ITIN Expiration Rules

ITINs are not permanent and can expire, requiring renewal to remain valid for tax purposes. An ITIN expires if it has not been included on a U.S. federal income tax return for three consecutive tax years. For example, an ITIN last used for the 2021 tax year would expire on December 31, 2024, if no returns are filed for 2022, 2023, or 2024. This rule encourages regular use of the ITIN for its intended purpose.

Certain ITINs issued before 2013 automatically expire based on their middle digits. This includes ITINs with middle digits 70-88, which have already expired on a staggered schedule. ITINs with middle digits 90-92 or 94-99 issued in 2013 or later also expire at the end of each calendar year. The IRS provides guidance on these specific expiration dates.

To determine if an ITIN has expired or is nearing expiration, individuals can review notices from the IRS or check the IRS website for the latest expiration schedule. An ITIN does not need renewal if it has been used on a federal tax return within the last three tax years and does not fall under the specific middle-digit expiration rules.

Preparing for ITIN Renewal

Renewing an ITIN involves completing Form W-7, Application for IRS Individual Taxpayer Identification Number. When preparing for renewal, individuals must indicate they are renewing an existing ITIN by checking the appropriate box on the form. This signals to the IRS that it is not a new application.

Form W-7 requires specific information, including the applicant’s name, mailing address, foreign status, and foreign country information. Supporting documentation verifying foreign status and identity must be submitted with the application. Accepted documents include a foreign passport, a national identity card, or a foreign birth certificate. These documents must be original or certified copies from the issuing agency.

For a successful renewal, documents must meet IRS requirements. A foreign passport is a standalone document that proves both identity and foreign status. If a foreign birth certificate is used, it often needs to be accompanied by a government-issued identification from the country of origin. The IRS website provides detailed guidance on acceptable documentation. Form W-7 can be downloaded from the IRS website or obtained through tax preparers.

Submitting Your ITIN Renewal Application

After gathering all necessary documents and completing Form W-7 for renewal, submit the application to the IRS. One common method is mailing the completed Form W-7 along with original supporting documentation to the IRS ITIN Operation address: Internal Revenue Service, ITIN Operation, P.O. Box 149342, Austin, TX 78714-9342.

Alternatively, individuals can apply through an IRS-authorized Certifying Acceptance Agent (CAA). CAAs assist applicants in completing and submitting Form W-7. They can also certify the authenticity of original documents, allowing applicants to avoid mailing their original identification documents to the IRS. Another option is to schedule an appointment at a designated IRS Taxpayer Assistance Center (TAC), where IRS personnel can review original documents and forward the application.

Processing times for ITIN renewal applications can vary, ranging from 7 to 14 weeks from the date of submission. If original documents were mailed, the IRS will return them to the applicant’s mailing address after processing the application. This process ensures the individual’s ITIN is updated and ready for use in future tax filings.

Impact of an Expired ITIN

An expired ITIN can lead to significant disruptions in tax processing and the potential loss of certain tax benefits. If a federal tax return is filed with an expired ITIN for the taxpayer, spouse, or a dependent, the IRS may delay processing the return. This delay can also hold up any anticipated tax refunds. The return may be processed, but without certain credits.

An expired ITIN can result in the disallowance or reduction of certain tax credits. For example, credits such as the Child Tax Credit (CTC), the Additional Child Tax Credit (ACTC), and the American Opportunity Tax Credit (AOTC) may not be allowed if the ITIN for the qualifying individual has expired. This can lead to a higher tax liability or a reduced refund amount.

An expired ITIN does not invalidate prior year tax returns filed correctly with a valid ITIN. The expiration only impacts current and future tax filings where the ITIN is required. Renewing the ITIN promptly helps avoid processing delays and ensures access to all eligible tax credits.