The IRS has started accepting the renewal applications for Individual Taxpayer Identification Numbers (ITINs), which are expiring by the 2017-year end. Hence, the taxpayers are alerted to submit the renewal applications quickly in order to avoid the last-minute haste and any processing delays. The taxpayers whose ITINs are expiring and who need to file a tax return in the year 2018 required submitting their renewal application and others who have a valid ITIN does not require any action. The taxpayer who holds the ITIN with middle digits 70, 71, 72, or 80 must be renewed even though it is been used in the last three years. A taxpayer who holds the middle digit 78, and 79, which is expired can renew their ITINs.
In another case, if the taxpayer receives a mail from the IRS then the taxpayer can select to renew their ITIN along with their family’s ITINs even the family members hold their ITIN with middle digits other than 70, 71, 72 or 80. Here, the family members refer to the taxpayer, spouse, and any dependents who claim on the tax return.
Errors in the ITIN Application:
The errors in the ITIN renewal application such as missing information the insufficient supporting documentation makes the application processing slow and makes few applications to keep them on hold. Before sending the application to the IRS, the applicants must thoroughly check the Form W-7, and the Application for IRS (Individual Taxpayer Identification Number) ITIN. For further assistance, the taxpayer can sort the help of a Certified Acceptance Agent or by consulting an IRS Taxpayer Assistance Center (TAC).
How to Renew an ITIN
In order to renew an ITIN, Form W-7 is required. The taxpayer must complete Form W-7 and submit all the required documentation. If you are, a taxpayer who needs to renew ITIN need not attach a federal tax return when you have submitted a Form W-7. Nevertheless, the taxpayers must write the reason for the need for an ITIN on Form W-7. For more information, you can check the detailed instruction in Form W-7. You can submit the W-7 application in three ways as follows.
1. You can email the Form W-7 with the original identification documents or along with the certified copies by the agencies that issued them. Address of the IRS is as listed in the instructions part of Form W-7. As soon as the IRS receives the documents, reviews the identification documents and return them within 60 days.
2. Taxpayers can work with the Certified Acceptance Agents (CAAs), which is authorized by the IRS to assist the taxpayers to apply for an ITIN. A CAA can certify the identification documents for both primary and secondary taxpayers; they can certify the correctness of the ITIN application before submitting it to the IRS. A CAA also certifies birth certificates and passports for the dependents. With the contribution from the CAA, a taxpayer saves a lot of time, instead of mailing the originals to the IRS.
3. The taxpayer has an option to call and fix an appointment at a designated IRS taxpayer assistance center and can avoid sending the original identification documents by mail to the IRS.
Avoid Common Errors and Prevent Process Delays
Federal returns, which have an expiry ITIN in 2018, can be submitted and processed. Still few of the exemptions and other tax credits are not allowed. The taxpayers who have an expiring ITIN are notified through email stating the need to change their tax return and remains about the renewal of their ITIN. When the taxpayer renews the ITIN, all the applicable exemptions and the tax credits are restored automatically. In case, if there was a refund it will be processed.
There are factors, which delay the process of the application. This is due to several common errors that slow down and hold the ITIN renewal applications. The most common mistakes include missing information or insufficient supporting document. Hence, the Internal Revenue Service advises the taxpayers to carefully check the application, correct the application if there were errors, and finally send it to the IRS.
The taxpayer must also note that the IRS does not accept the passports that do not have a date of entry into the U.S.In addition, they are considered as a stand-alone identification document for the dependents from other countries such as Canada or Mexico, else for the dependents of U.S military personnel overseas. If the dependent’s passport does not have a date of entry stamp in the passport, then the following additional documentation is required in order to prove as the resident of the U.S.
- 1. Medical records of the U.S for the dependents whose age is fewer than six years.
- 2. School records of the U.S for the dependents whose age is less than 18 years.
- 3. School records of U.S., rental agreements or statements, bank statements or utility bills, which contains the name of the applicant and the U.S address if the age is more than 18 years.
In order to spread and increase the availability of the ITIN services across the nation, especially in the communities that have high ITIN usage, the IRS is keen in recruiting Certified Acceptance Agents and Applications are invited throughout the year. Therefore, if you are a volunteer at tax preparation, community outreach partners or interested individuals go through the program changes and requirements.