itin renewal

How To Renew My ITIN Number

Recently, in the month of August, the Internal Revenue Service (IRS) announced a few changes in the laws of Individual Taxpayer’s Identification Number (ITIN) for taxpayers. Due to the changes made under this law, taxpayers may need to renew their ITIN number. As a result, a question, “How to renew my ITIN number?” is rife nowadays. An ITIN number plays a critical role in the tax administration and helps tax payers in the filing of taxes.

Moreover, ITINs are only issued to individuals who are ineligible to get a Social Security Number yet, are required to file taxes. It is specifically designed for tax administration purposes. There are many changes made under the new policy regarding ITIN which is why you may be concerned about how to renew your ITIN number. With the changes made, it has become obligatory for individuals who are required to file taxes to renew their ITIN number.

If you need to renew your ITIN number, you can read the entire procedure in this blog, along with some basic information about what an ITIN number is.

If you would like our help in renewing your ITIN number, please call us at 407-344-1012, or email us at info@freedomtaxfl.com.

Understand the Nuts and Bolts of ITIN Number

Before we move on to the answer of the question, “How to renew my ITIN number?”, you should first understand the nuts and bolts of the ITIN number. For starters, an ITIN is one of the types of a Tax ID Number (TIN).

Overview of Tax ID Number (TIN)

Be it a resident or a non-resident, everyone requires a Tax ID number to live in the United States. A tax ID number is of 5 types. They are;

  • Individual Taxpayer Identification Number (ITIN)
  • Preparer Taxpayer Identification Number (PTIN)
  • Employer Identification Number (EIN)
  • Taxpayer Identification Number for Pending US Adoptions (ATIN)
  • Social Security Number (SSN)

All these numbers are issued by the IRS and comprise of 9 digits. All these numbers have one similar purpose; the filing of taxes. However, it varies from one individual taxpayer to another.

Out of all the five Tax ID numbers, only the first three; the ITIN, SSN and EIN, are active while the rest of the two no longer active. If you are trying to find an answer to the question, “How to renew my ITIN number?”, you also need to know the details of these numbers, as elaborated below.

·       ITIN – Individual Taxpayer Identification Number

Before exploring the answer to the question, “How to renew my ITIN number?”, you should have an understanding about what an ITIN is. It is only granted to individuals who are not eligible for an SSN. Also, those who are willing to get employment in the United States may be required to have this number as they will have to pay off the taxes and returns.

Moreover, it is comprised of nine digits but with the new law, the range of the digits has been extended. Individuals who want this number are required to fill Form W-7. If you want to get employment in the United States, you first have to obtain the ITIN. It is granted to non-residents. If you are concerned about how to renew your ITIN number, keep reading this blog.

·       SSN – Social Security Number

Another active type of Tax ID number is the Social Security Number (SSN). It is slightly different from ITIN. It is granted to residents of the United States and those who wish to get employment in the United States. This number also consists of nine digits but it is provided by the Social Security Authority (SSA). At times, this number can also be given to non-resident individuals. Not only this, it can be given to temporary aliens too, depending upon the situation.

If you need a Social Security Number (SSN) for employment in the United States, you need to fill Form SS-5. Also, you need to take permission from the United States Citizenship Immigration Services (USCIS) to have this number. Though the process is a bit lengthy and complex, if you follow the process seamlessly by hiring a corporate lawyer, it will not be difficult. If you have a question about how to renew your ITIN number and if the renewal process of a SSN has also been modified, you need to know that the process of getting an SSN is still the same as before.

·       EIN – Employer Identification Number

Those who are clueless about how to renew their ITIN number, they should also familiarize themselves with the type of tax ID number individuals require for starting a business in the United States. The Employer Identification Number, known as the EIN, is required for forming a business in the United States. It is also consists of nine digits and is provided to the individual by the IRS.

Therefore, the SSN and ITIN is for those individuals who wish to get employed in the United States and an EIN is for those people who wish to start a business in the United States. If you find the process of obtaining an EIN difficult, you can hire a consultant to do so on your behalf. To know the answer to the question, “How to renew my ITIN number?”, keep reading the blog.

Elements of an ITIN You Must Know About

There are certain features and elements about an ITIN which you need to know about before we move on to answer, “How to renew my ITIN number?” Here are some facts about the ITIN number which you should know to better understand the process before renewing it.

·       ITINs Do Not Grant Work Authorization

The ITIN is a form of tax ID number provided by the IRS that only works for the filing of taxes and tax returns. It does not authorize an individual to do their own work or start a business operation. This means that you cannot get employment or start a business in the United States using an ITIN. However, there are some individuals among those asking about how to renew their ITIN number whether the number gives the work authorization too. But, they are in the wrong and should understand this aspect.

·       ITIN is Required to Fulfill Your Tax Obligations

The whole ITIN program was created by the IRS. As mentioned above, some people often think that ITINs are for when individuals seek employment too but the core reason behind their establishment is to fulfill the tax obligations. Residents and foreign investors require paying taxes. For this reason, they need to obtain the ITIN number. It is also for the ones who require tax identification and are not eligible for the Social Security Number.

·       ITIN Numbers Do Not Provide Tax Benefits

Along with the first two facts, people concerned about how to renew their ITIN number also need to understand that ITINs do not provide tax benefits to individuals issuing it. Residents or foreign investors who require it may not get to enjoy the benefits associated with it. On the other hand, a United States resident can enjoy the tax benefits if they own an ITIN number. Once the non-residents become the permanent residents of the United States, they will be given the authority to enjoy all the tax benefits.

·       ITINs are Obtained by Immigrants

If you do not have a legal status in the United States, you may have to obtain an ITIN. Those people who are eligible to get an ITIN. They are elaborated below;

  • A dependent of the United States’ citizen can obtain an ITIN.
  • A non-resident or a foreign investor who owns a business or is employed in the United States is required to get an ITIN because they are required to pay off the taxes from their income.
  • A student in the United States is required to have an ITIN based on the number of days they will be staying in the country.
  • Those foreign investors and spouses who have a temporary visa can also have an ITIN.

·       Child Tax Credit (CTC) is Eligible for ITIN Holders

The child tax credit for every child is around $1,000 in the United States. Though the ITIN holders are not eligible for the other tax benefits, they are eligible for the child tax credit. On the basis of the income of the applicant, the amount can vary a bit. Due to this, around 4 million children benefit from this credit service.

If you would like our help in renewing your ITIN number, please call us at 407-344-1012, or email us at info@freedomtaxfl.com.

How to Obtain an ITIN? – Brief Process

If you want to know the answer to the question, “How to renew my ITIN number?”, you should first have a brief overview of how to obtain an ITIN. The basic way to apply for an ITIN is to submit the Form W-7 Application to the Internal Revenue Service. Some of the taxpayers only submit the application while some of the taxpayers submit the application with the tax return. Both the investors, either foreign or non-resident, need to submit Form W-7 to obtain an ITIN. Also, some of the required documents need to be sent to the IRS by mail.

You can submit these documents and applications via mail, online or in any other way. No matter which way you choose, the application and the documents you have submitted will be reviewed, evaluated and accepted by the employees at the IRS. Once the evaluation is done and everything is reviewed, you will be given your ITIN via mail or whichever procedure you have chosen to apply for the ITIN. However, the easiest and quickest way to apply and get an ITIN is by submitting it in-person. You can get the number in hand as soon as the application is reviewed and evaluated.

New Law – New ITIN Number

Previously, it didn’t matter if a person used on ITIN issued to them or not. There was no policy regarding its non-usage. Now, that rule has changed and there is a new law which individuals are required to abide to. That is why so many people are concerned about how to renew their ITIN number.

In June 2014, the Internal Revenue Service declared that the ITINs that will not be used for filing tax returns for five consecutive years will be deactivated. Though the deactivation process did not begin until the PATH Act was passed but since it has been enacted, certain ITINs will no longer be in effect until and unless they are renewed.

Those who are asking about how to renew their ITIN number should first understand the logic behind the renewal process. Under the new act, any ITIN that was not used to file a federal tax return for 3 consecutive years will be rendered expired on December 31st of the 3rd consecutive tax year of no use, whether an individual files a tax return or a dependent does after it has been deactivated.

For instance, Mr. Adam applied for an ITIN and receives it in the year 2015. He will use it to file 2014’s federal income tax return. If it was not used by Mr. Adam, it will expire on December 31st 2018 if it is not claimed as a dependent or not used to file a return in 2016, 2017 and 2018.

Now that many people are asking about how to renew their ITIN number, it means that many people require knowing the renewal schedule. Those who have not used their ITINs and want to use it for filing their tax returns now, they should make arrangements and prepare for the renewal of their ITIN because it has expired and can no longer be used to file tax returns.

ITINs that will No Longer be in Effect

Unless the ITIN has already expired due to non-usage for 3 consecutive years, it will no longer be in effect according to the new schedule. Before exploring about how to renew your ITIN number, you should check out the new schedule for the ITINs that will not be used below.

  • The ITINs issued pre 2008 will expire after January 1st
  • The ones issued sometime during will stay valid till January 1st
  • Those issued in 2009 and 2010 are going to remain active until January 1 st
  • The ITINs that were issued in 2011 and 2012 are going to remain active until January 1 st

Are You Concerned About How to Renew Your ITIN Number? | Consider the Procedure

The ITIN holders who are required to file their tax returns would be required to renew their ITINs. The rest may not be interested in renewing it anyway but if you are one of those people who are required to file tax returns, then you may be asking as to how to renew your ITIN number. If you want to learn the core of the question, you need to read the following procedure carefully.

The IRS has declared that the renewing procedure has begun as of October 1st 2016. ITIN holders who wish to renew their ITINs have expired because they did not use it for 3 consecutive years need to follow almost the same procedure which they did when they obtained an ITIN the first time.

  • Firstly, they would need to complete Form W-7 properly.
  • Also, they need to fill the application at the IRS to get an ITIN
  • Attach all the documents required to obtain an ITIN.
  • You must remember to use the latest version of Form W-7 which will be readily available to you at the time of renewal (available from September 2016).
  • After filling the form, you must ensure to submit it via mail using one of the IRS authorized Certified Acceptance Agents or making a call or an appointment with the IRS Taxpayer Assistance Center.

Do You Really Need an ITIN Renewal?

If you are asking about how to renew your ITIN number, you should also know whether or not you really need it. You would need renewal of an ITIN in 2 cases. Check them below.

·       Expired ITINs

The ITINs which were issued to individuals before 2013 will begin expiring this year. Taxpayers would need to renew them on a rolling basis. Those ITINs which begin with the middle digits of 78 and 79 will expire first in the schedule. The renewal period for the ITINs has begun as of October 1st 2016.

The IRS has sent the letters to these taxpayers in August to inform them beforehand that their ITINs require renewal. If they need to file tax returns, they first have to get their ITIN numbers renewed. The ITINs which do not have middle digits of 78 and 79, their renewal schedule will be announced at a future date.

·       Unused ITINs

The ITINs that have not been used in the last 3 years in a row, from 2013 to 2015, will no longer be in effect for tax filing as of January 1st 2017. ITIN holders in this group will be required to file tax returns the next year to renew their ITIN.

Now that you have got to know of the ins and outs of an ITIN and the answer of how to renew your ITIN number, we hope you will be able to get through the renewal process seamlessly. If you still feel difficulty, we recommend you hire a local lawyer for a smooth ITIN renewal process. Good luck!

If you would like our help in renewing your ITIN number, please call us at 407-344-1012, or email us at info@freedomtaxfl.com.

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