Do you know if your ITIN (Individual Taxpayer Identification Number) is still active? You are not alone; the majority of tax filers forget to check the status of their ITIN. Not doing so may result in some issues when filing your taxes.
Well, don’t be worried. Here’s a simple way of knowing if your ITIN has expired.
What is an ITIN and Why is it Important?
ITIN Explained
An ITIN, short for Individual Taxpayer Identification Number, is allocated by the Internal Revenue Service to a person who has to file in the United States but is not eligible to obtain an SSN. The groups include:
- Non-resident aliens
- S. resident aliens based on their stay in the U.S.
- Dependents or spouses of U.S. citizens or resident aliens
- Foreign nationals having business interest in the U.S.
This allows for the tracking of tax payments for those persons who are ineligible for obtaining an SSN.
Why Should You Check Whether Your ITIN is Expired?
An active ITIN is needed for correct tax filing. When an ITIN is inactive, a tax return sent to the IRS will likely be denied, delaying refunds or tax credit releases. All other procedures for acquiring loans or other financial services that require proof of taxes will also be affected.
How to Check Whether Your ITIN Has Expired
Now, down to the nitty-gritty—the question itself: How do you find out if your ITIN has lapsed?
1. Check Validity Period
The IRS established validity periods for ITINs. Generally, an ITIN will expire automatically if there was no tax return attached to that number filed for three consecutive years. In short, if you haven’t filed a U.S. tax return in 3 years, chances are that your ITIN is either expired.
2. Look for Expiration Notices
The U.S. tax authority often sends a CP48 notice to taxpayers whose ITIN is going to expire. Such CP48 notices will very clearly be marked as renewing your ITIN. As soon as you get such a notice, you have to take it seriously and start with the renewal process.
3. Specific ITIN Ranges
Certain ITINs are automatically expired. ITINs in the middle digits 70 through 88, 90 through 99, or 00 through 08 are automatically expired unless you renew them. For your convenience, here is a quick look:
- Expired ITINs: 70-88, 90-99, 00-08
- Expiring ITINs: 80-89 if issued before 2013 and not renewed
4. Go to the IRS Website
Still not sure? Check the IRS website. They have their renewal page for ITINs, which happen to be expiring and their corresponding renewal process. It also has ways on how to reach the IRS directly.
What to Do with an Expired ITIN
So what to do when the ITIN has expired? No need for alarm. Here are the steps to renew your ITIN:
1. Form W-7
You can renew your ITIN by filing Form W-7, Application for IRS Individual Taxpayer Identification Number. Download this form from the IRS website.
2. Gather Required Documents
You will be asked to present documents that prove your identity and your foreign status. These can include:
- Passport (most common)
- National ID card
- Birth certificate for dependents
Ensure you attach originals or certified copies issued by the relevant authorities.
3. Apply
Once you have your form and supporting documents in hand, there are actually several ways to make a submission:
- Mail: Send it right to the IRS.
- In person: Visit an IRS Taxpayer Assistance Center (TAC).
- Authorized Acceptance Agent: Get help from an IRS authorized agent for processing your application.
4. Wait for Approval
It usually takes about 7 to 11 weeks for the IRS to process your request after the submission. Be patient! If granted, you will receive a new ITIN by mail.
Common Mistakes to Avoid
1. Renewing Too Late
Many people renew their ITINs too late and experience tax problems as a result. Just don’t! Renew your ITIN early before tax problems arise.
2. Wrong Documents
Ensure the documents you submit to the IRS are accurate. Inaccurate documents may cause delays in your application or, worse, the rejection of your application. Ensure you check the IRS requirements first prior to submitting the documents.
3. No Response to IRS Notices
Once you receive an IRS notice that your ITIN is expiring, treat it seriously. This type of notification does not take precedence but should be followed up early to avoid any tax implications that might arise later.
Conclusion
In a nutshell, one should check whether his or her ITIN has expired to prevent improper tax filing and subsequently financial delay. Always remember to:
- Check the date of expiration or whether you have been sent a notice by the IRS.
- An expired ITIN can be renewed with the help of Form W-7, attaching the necessary documents which will be accepted by the IRS to complete the process.
- Do not fall into any of these common mistakes: giving up too soon or submitting wrong documents.
By doing so, you keep your ITIN current and avoid issues with your tax returns. Call the IRS or a tax professional when in question. Keeping your status current will save many headaches later on.
Now that you know how to find out whether your ITIN is expired, you’ll be better prepared for the next tax season. Good luck!
For more detailed information on Individual Taxpayer Identification Numbers (ITINs), including how to apply and legal considerations, visit the IRS official page on ITINs.
For further assistance with ITIN applications, check out our ITIN page.