The IRS announced yesterday that nearly 2.7 million Individual Taxpayer Identification Numbers (ITINs) are set to expire at the end of 2018. The Protecting Americans from Tax Hikes (PATH) Act, enacted in 2015, issued provisions requiring some taxpayers to renew their ITINs. Now in year 3 of the ITIN renewal program, the IRS is urging taxpayers whose ITINs will expire in 2018 to renew them early. They will be sending CP-48 Notices to those affected. The notice explains who needs to and who does not need to renew their ITIN, as well as instructions on how to renew an ITIN.
The following types of ITINs are set to expire and must be renewed by the taxpayer to avoid delays in the processing of their 2019 tax returns and refunds:
- Unused ITINs – Any ITIN that has not been used to file a federal tax return in at least 1 of the last 3 years must be renewed or it will no longer be valid for filing a tax return.
- Expiring ITINs – Any ITIN with the middle two digits of 73, 74, 75, 76, 77, 81 or 82 must be renewed, even if it has been used to file a federal tax return within the last 3 years.
- Previously Expired ITINs – Any ITIN with the middle two digits of 70, 71, 72, 78, 79 or 80 that previously expired in 2016 or 2017 can still be renewed.
In an effort to make the renewal process easier and more efficient, the IRS has taken steps to assist taxpayers who are required to renew this year. The renewal process for 2019 is beginning earlier than it did the first two years of the program and staffing has been increased to handle the processing of W-7 applications. Families have the option to renew their ITINs at the same time if one member of the family has an ITIN that is expiring this year or has already expired. In addition, the IRS is actively looking for Certified Acceptance Agents to help increase the availability of ITIN services throughout the country. Applications to become a Certified Acceptance Agent are being accepted throughout the year.
Tax professionals interested in becoming a Certified Acceptance Agent should familiarize themselves with the ITIN Acceptance Agent Program requirements and submit their completed Form 13551 to the Internal Revenue Service directly.