Since the program began in 1996, a substantial number of Individual Taxpayer Identification Numbers (ITINs) have been issued to nonresident aliens who were not eligible to obtain U.S. social security numbers. An ITIN must be obtained for the purpose of reporting certain transactions by nonresident aliens that are subject to U.S. income taxation. These transactions include the sale and rental of U.S. real estate.
Under the Protecting Americans from Tax Hikes Act of 2015 (PATH Act), significant changes were made to the ITIN program. Previously, ITINs remained in effect unless the taxpayer applied for and received a social security number. Effective January 1, 2017, certain ITINs expire and will be required to be renewed in order to continue to be used for the filing of U.S. federal income tax returns.
There are two key groups of ITIN holders who will need to renew their ITINs in order to be valid for the filing of U.S. federal income tax returns.
ITINs with the middle digits of 70-88 expired effective January 1, 2020 or earlier. ITINS with the middle digits of 90, 91, 92, 94, 95, 96, 97, 98, and 99 expire effective January 1, 2021.
ITINs in either of these two key groups will no longer be valid to use on a U.S. federal income tax return unless they have been renewed. Once renewed, the ITIN will remain in effect unless not used on a U.S. federal income tax return for three consecutive years.
No action is needed by ITIN holders not required to file a U.S. federal income tax return. ITINs not included in the two key groups will require no action by the ITIN holder.
To renew an ITIN, a taxpayer must complete a new Form W-7, Application for IRS Individual Taxpayer Identification Number (version with the revision date August, 2019). Original or certified copies of supporting documentation establishing the taxpayer’s identity and foreign status must be submitted with the Form W-7.
About the Author
Renea M. Glendinning, CPA, Shareholder, joined the firm in 1987 and has led the International Tax Department since 1996. She has authored articles regarding various international tax issues and frequently gives presentations on U.S. income and estate taxation of foreign nationals doing business in the U.S.