A Guide To ITIN Renewal For Taxpayers: How To Avoid Delays

A Guide To ITIN Renewal For Taxpayers: How To Avoid Delays

An Individual Taxpayer Identification Number (ITIN) is a unique identification number assigned by the Internal Revenue Service (IRS) to individuals who are required to have a taxpayer identification number but do not have, or are not eligible to obtain, a Social Security Number (SSN). The ITIN is used for tax purposes and is required for certain tax-related transactions. However, ITINs are assigned for a specific period and need to be renewed periodically to maintain their validity.

If an ITIN is not used on a federal tax return at least once in the last three consecutive years, it will expire. Additionally, ITINs that have the middle digits of 78 or 79 will expire at the end of 2021. It’s important to renew the ITIN in a timely manner to avoid any delays or complications when filing taxes or carrying out other tax-related transactions.

This guide will walk you through the renewal application process of your ITIN. From determining if your ITIN needs to be renewed, to gathering the necessary documentation, and submitting the form and federal tax return. By following this guide, you can ensure that your ITIN renewal process is smooth and without any delays.

How to renew your ITIN?
To renew an ITIN (Individual Taxpayer Identification Number), individuals must complete and submit Form W-7 to the Internal Revenue Service (IRS), along with the necessary documentation and a federal income tax return. Here is a step-by-step guide on how to renew an ITIN:

Determine if your ITIN needs to be renewed: An ITIN is valid for a specific period of time. If it has not been used on a tax return for at least three consecutive years, it will expire.

Gather the necessary documentation: Depending on your citizenship and residency status, you may need to provide proof of identity and foreign status. Examples of accepted documents include a passport, birth certificate, or national identification card.

Complete Form W-7: Form W-7 is the application form for an ITIN. It is available on the IRS website or through a tax professional.
Submit the Form W-7, documentation, and tax return: You can submit the form, documentation, and tax return by mail or in-person at a designated IRS Taxpayer Assistance Center.
Wait for the ITIN to be issued: The IRS will review your application and if everything is in order, you will receive an ITIN within 7-10 weeks.
It’s important to note that if you are already in the United States, you may be able to apply for an ITIN at certain designated acceptance agent locations. Additionally, some third-party companies are authorized to assist with ITIN renewal, you can find more information on the IRS website.

It’s also important to note that an ITIN does not authorize work in the U.S. or provide eligibility for Social Security benefits, its only purpose is for tax purposes. It’s recommended to renew the ITIN in a timely manner to avoid any delays or complications when filing taxes or carrying out other tax-related transactions.

How to complete form W-7
To complete Form W-7, you will need to provide your personal information, including your full name, address, and date of birth. You will also need to provide documentation to prove your identity and foreign status, such as a passport, national ID card, or birth certificate. If you are applying for an ITIN for a dependent, you will also need to provide documentation to prove their relationship to you, such as a birth certificate or marriage certificate. Once you have gathered all of the necessary information and documentation, you can submit the completed Form W-7 to the IRS, either by mail or through an authorized acceptance agent. It’s always recommended to check the latest version of the form and instructions in the official IRS website to make sure you have the most updated information.

How long does it take to get an ITIN?
The processing time for Form W-7 and ITIN application can vary depending on a number of factors, such as the time of year (for example, processing times may be longer during tax season), the completeness and accuracy of your application, and whether you are submitting your application by mail or through an authorized acceptance agent.

According to the IRS, it can take up to 11 weeks for an ITIN application to be processed if you submit it by mail. If you submit your application through an authorized acceptance agent, the processing time may be shorter. The IRS also indicates that if you submit your application during their peak processing periods, which are typically from January to April and from July to October, the processing time may be longer.

It’s important to keep in mind that the above time frames are estimates and that it may take a longer or shorter time to process your ITIN application. Once you have submitted your application, you can check the status of your ITIN application on the IRS website.

Have a question? Contact Olivier Wagner, 1040 Abroad.

Olivier Wagner

Certified Public Accountant, U.S. immigrant, expat, and perpetual traveler Olivier Wagner preaches the philosophy of being a worldly American. He uses his expertise to show you how to use 100% legal strategies (beyond traditionally maligned “tax havens”) to keep your income and assets safe from the IRS. Before obtaining my U.S. citizenship and traveling all over the world, he was born and raised in France. His experience learning the intricacies of the U.S. immigration process combined with his desire to travel freely lead me to specialize in taxes for Americans living and working abroad. He helps Americans Abroad file their taxes and devise strategies that make sense for their lifestyle. These strategies encompass all aspects of registering an offshore business, opening a bank account abroad, and planning out new residencies and citizenships. He is operating the accounting firm 1040 Abroad. 1040 Abroad exists to help you make sense of an incredibly large world of possibilities. Find out more by visiting www.1040abroad.com

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1 comment on “A Guide To ITIN Renewal For Taxpayers: How To Avoid Delays”

  • This describes everything but the nuances of how to apply so as to not be rejected. Time and time again, taxpayers thru sophisticated law firms fail the ITIN application process. IRS has made getting 9 digits a process with many twists and turns. See my LinkedIn articles. Over many years I have dealt with many crazy ITIN scenarios, in fact when taxpayers from Toronto call IRS for ITIN, IRS directs them to me.

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