Get or Renew ITIN Before It’s Too Late
To File a 2017 Tax Return, Renew ITIN in Time for the December 2017 Deadline
New tax laws have gone into effect. Users must renew their ITIN before filing to get credits for dependent children and other programs that would normally save money on taxes. The IRS will disallow these exemption credits on returns for ITINs that were now current at the date the tax return is filed.
Call Howard Griffel, a Certifying Acceptance Agent. Because he is a Certifying Acceptance Agent, Howard can certify adult’s identity documents (like passports). Otherwise, they must be mailed to the IRS.
Call (610) 420-5176 for help navigating this change.
New Deadline for Obtaining ITIN
In the past, taxpayers could claim an EITC, a child tax credit, or the American opportunity tax credit on an amended or late-filed return with an SSN or ITIN obtained after the return’s original due date. However, this will not be the case going forward. You must renew ITINs and have been granted an ITIN before your initial filing for that tax year.
To claim your exemptions you must have a current ITIN before you file. The IRS has stated that they will stop processing ITINs and renewals near the end of tax season.
According to the IRS:
The new law will mean ITINs that have not been used on a federal tax return at least once in the last three years will no longer be valid for use on a tax return unless renewed by the taxpayer. In addition, ITINs issued prior to 2013 that have been used on a federal tax return in the last three years will need to be renewed starting this fall, and the IRS is putting in place a rolling renewal schedule, described below, to assist taxpayers.
If taxpayers have an expired ITIN and don’t renew before filing a tax return next year, they could face a refund delay and may be ineligible for certain tax credits, such as the Child Tax Credit and the American Opportunity Tax Credit, until the ITIN is renewed.
“The ITIN program is critical to allow millions of people to meet their tax obligations,” said IRS Commissioner John Koskinen. “The IRS will be taking steps to help taxpayers with these changes, and we’re designing this effort to minimize the burden as much as possible. We will be working with partner groups on an outreach effort to share information about these changes to ensure people understand what they need to do in advance of next year’s tax season.”
The ITIN changes are required by the Protecting Americans from Tax Hikes (PATH) Act enacted by Congress in December 2015. These provisions, along with new procedures to help taxpayers navigate these changes, are outlined in IRS Notice 2016-48.
New ITIN Renewal Policies
There are two key groups of ITIN holders who may need to renew an ITIN so it will be in effect for returns filed in 2017:
- Unused ITINs. ITINs not used on a federal income tax return in the last three years (covering 2013, 2014, or 2015) will no longer be valid to use on a tax return as of Jan. 1, 2017. ITIN holders in this group who need to file a tax return next year will need to renew their ITINs. The renewal period begins Oct. 1, 2016.
- Expiring ITINs. ITINs issued before 2013 will begin expiring this year, and taxpayers will need to renew them on a rolling basis. The first ITINs that will expire according to this schedule are those with middle digits of 78 and 79 (Example: 9XX-78-XXXX). The renewal period for these ITINs began Oct. 1, 2016.