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PATH Act ITIN Renewal Requirements: All ITINs issued before 2013



TaxConnections Member Larry Stolberg

On December 18th, President Obama, signed H.R. 2029, the tax (the “Protecting Americans from Tax Hikes Act of 2015”) and spending bills (Consolidated Appropriations Act, 2016) to fund the government for its 2016 fiscal year.

The PATH Act ITIN renewal requirements: individuals who were issued Individual Taxpayer Identification Numbers (ITINs) before 2013 to renew their ITINs on a staggered schedule between 2017 and 2020 either in person before an IRS employee or a certified acceptance agent or by mail under procedures to be developed. Documentation proving identity, foreign status and residency is required for renewal. The Act also provides that an ITIN will expire if an individual fails to file a tax return for three consecutive years.

Similar rules apply to individuals residing outside the United States such as Canadians who applied for ITINS and file U.S. tax returns reporting their net rental income from U.S. real estate. It’s important to keep in mind that the

PATH Act ITIN renewal rules state ITINs will expire if tax returns are not filed.

Individuals that applied for ITINS to complete specific tax withholding IRS waiver forms such as the W8-BEN may also be affected as those forms are generally only in effect for 3 years and must be resubmitted to the withholding agent. Individuals who are in receipt of U.S. pension or royalties don’t file U.S. returns as generally this type of U.S. source income is not connected with a trade or business situated in the United States. A return would be only be filed to obtain a refund if the actual withholding exceeded the rate that in contained in the Canada/U.S. tax treaty.

 

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Larry Stolberg, CPA, CA, CPA (South Carolina), has been practicing as a full-time tax specialist for over 30 years, in the Toronto, Ontario Canada and surrounding GTA area with primary emphasis on:

•Corporate restructuring for business owners
•Estate/succession planning
•U.S. expatriate and cross border issues
•Tax efficient planning that will achieve both your short and long term objectives

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2 thoughts on “PATH Act ITIN Renewal Requirements: All ITINs issued before 2013

  1. Avatar Daniel Gray says:

    Note that for individuals issued ITINs earlier than 2013 who did not file a US return for 3 consecutive taxable years their ITINs will expire the earlier of: the last day of such third consecutive taxable year and Dec 31, 2015 and cannot necessarily rely on the staggered schedule as the applicable expiry date.

  2. Avatar Elaine Terlinden says:

    Can you please tell me where you get “The Act also provides that an ITIN will expire if an individual fails to file a tax return for three consecutive years.”

    Also is there something about ITINs expiring if not used in any of the last 5 years?

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