If your Individual Taxpayer Identification Number (ITIN) expired on January 1, 2017, keep in mind that you may still renew your number, but you must renew your number in time to file your 2016 tax return in a timely fashion. Also, there are new documentation requirements when applying for or renewing an ITIN for certain dependents.
This delay in renewal will likely cause some inconvenience. According to the Internal Revenue Service, you may expect the processing of your renewal application and yearly tax return to take a little longer than usual. This, of course, will cause any potential refund to be delayed. An experienced tax professional may assist any individual with the need to renew his or her ITIN.
Under a recent legislative amendment to the current law, any ITIN not used on a tax return at least once in the past three years expired on Sunday, Jan. 1, 2017. In addition, any ITIN with middle digits of either 78 or 79 (9NN-78-NNNN or 9NN-79-NNNN) also expired on Sunday, Jan. 1, 2017.
Again, it is important that any individual with an expiring ITIN should act now to make sure they have a renewed ITIN in time to file a return during the upcoming tax season. Otherwise, you may have your refund and eligibility for other tax benefits delayed until the renewal of the ITIN.
According to the IRS, an ITIN renewal application filed in December will be processed before one submitted in January or February at the height of tax season. The IRS will typically process a complete and accurate renewal application in seven weeks. But this timeframe now is 11 weeks because it’s tax season.
Some ITIN renewal applications are delayed by common errors that typically involve missing information and insufficient supporting documentation. Applicants must carefully complete and review their forms before submitting them to the IRS. A qualified tax professional may assist and guide this renewal process by ensuring the inclusion of all necessary information and the use of all of the correct, required forms so that ITIN holders file their 2016 tax returns before the April deadline. But act now, time is running out!
Unlike past years, only a passport with a U.S. entry date is now acceptable as a stand-alone identification document for dependents. Thus, dependent ITIN applicants who use a passport without a date of entry must provide additional documentation, along with the passport, to prove U.S. residency. Dependents from Canada or Mexico or dependents of U.S. military personnel stationed overseas are exempt from these additional requirements. Acceptable documents include:
- If under age 6, a U.S. medical record.
- If under age 18, a U.S. school record.
- If at least age 18, a U.S. school record for anyone who is a student. Otherwise, anyone 18 and over can provide a rental or bank statement or a utility bill listing the applicant’s name and U.S. address.
It is wise for individual and business taxpayers located in New York, New Jersey, or Connecticut to consult with a tax professional to answer any tax-related questions during 2017, call THE TAX EXPERTS at the Thorgood Law Firm www.thorgoodlaw.com. For a FREE consultation call 212-490-0704.
