A blog about U.S. immigration matters by Paul Szeto, a former INS attorney and an experienced immigration attorney and counsel. Contact Info: 732-632-9888, http://www.1visa1.com/ (All information is not legal advice and is subject to change without prior notice.)

Thursday, November 10, 2016

IRS New Rule On ITIN


A new rule by IRS requires U.S. taxpayers to renew their Individual Taxpayer Identification Number (ITIN) starting October 2016.  The ITIN is a 9-digit tax processing number issued by IRS to individuals who need to file federal income tax returns but do not have a valid Social Security Number (SSN).  

It is important to note the ITIN is only used for federal tax reporting purposes only.  It does not confer employment authorization to individuals.  Individuals who are working without government permission are still required to report their income and pay taxes.  

As of January 1, 2017, all ITINS that have not been used on a federal tax return at least once in the last three years (2013-2015) will become invalid.  Further, ITINs issued before 2013 are also being phased out gradually, starting with those with middle digits of 78 and 79 (Example: (9XX-78-XXXX). All expired ITINs must be renewed before they can be used on a U.S. tax return.  For those who fail to renew their ITIN as required, processing of their tax refunds will be delayed.

However, if you do not plan to file a federal tax income tax return, you do not need to renew your ITIN.  

To renew an ITIN, taxpayers must complete a Form W-7, Application for IRS Individual Taxpayer Identification Number, and follow the instructions in the form.  They can mail their Form W-7 to the designated IRS address listed on the form. For details visit IRS : https://www.irs.gov/individuals/general-itin-information

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