itin renewal

ITIN Number Renewal

The Protecting Americans from Tax Hikes Act of 2015 (PATH Act) introduced some new changes in the laws. These changes have nudged some tax payers to take action regarding ITIN number renewal. The renewal process will further ensure about the authentication of individual tax payer identification number (ITIN) for the upcoming tax years. These changes in the laws have been made to protect and secure the tax payers.

However, many tax payers are perplexed about the issue of ITIN number renewal. They are actually confused about the conditions and do not know whether to re-apply or renew their ITIN number. If you are confused about the ITIN number renewal process as well, you can hire a professional and credible lawyer to help you out with ITIN number renewal.

You will find all that you need to know abput ITIN number renewal in this blog.

If you need to renew your ITIN number, we can help. Please call us at 407-344-1012, or email us at info@freedomtaxfl.com.

Individual Taxpayer Identification Number (ITIN)

Before we move on to discuss the details of ITIN number renewal, it is necessary to understand the nuts and bolts of what an Individual Taxpayer Identification Number (ITIN) is and what it is needed for. This number is one of the common types of Tax ID numbers. A Tax ID number is of 5 types; namely, the Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), Employer Identification Number (EIN), Preparer Taxpayer Identification Number (PTIN) and the Taxpayer Identification Number for Pending US Adoptions (ATIN).

All the five types have their own purpose of issuance. Out of these five, only three (ITIN, SSN and EIN numbers) are active, while the two TIN numbers (ATIN and PTIN) are now inactive. These three numbers are issued by the Internal Revenue Service (IRS). ITIN and SSN numbers are only granted to individuals who wish to get employment and reside in the United States, while an EIN number is only provided to the individuals who wish to start a business there. If you want to know the process of ITIN number renewal, keep reading this blog as we will be discussing the renewal process in the further sections.

An Individual Taxpayer Identification Number (ITIN) is 9-digit code. The range has been extended under the new laws and modifications. Also, it is granted by the IRS to those individuals who wish to work in the United States and reside there. Additionally, it is also provided to those individuals who are not eligible for the Social Security Number (SSN). Living in the United States would make them liable to pay taxes, and they can do that using the ITIN number.

Those individuals who require having this number would have to file Form W-7. The process is not very lengthy and daunting because of the available alternatives. Nowadays, people do need to go to the IRS office on their own; instead, they can request for the ITIN number online and coordinate via emails. You can fill Form W-7 with the help of a lawyer online. However, you need to ensure that you submit all the correct details. Moreover, now that the laws have been modified and things have changed, some of the tax payers will have to get it renewed. This is why many tax payers are found asking about the ITIN number renewal process.

Some Important Facts about Individual Taxpayer Identification Number (ITIN)

The ITIN is a tax processing number that is issued by the IRS and is assigned to everyone, including unauthorized immigrants, to ensure that people pay their taxes even if they do not have the Social Security Number with them, regardless of their immigration status. The IRS earns billions of dollars with these ITINs. Here are some common facts about ITINs which you need to know first in order to understand the ITIN number renewal process properly.

·      Tax Purposes

The IRS created the ITIN program back in 1996 for the foreign and other individuals who could not obtain a SSN. These individuals are required to pay their taxes because they reside in the United States and have to fulfill this obligatory duty.

·      Unlike Social Security Numbers

Another important aspect about the ITIN is that people often confuse ITINs with the SSNs. This is, perhaps, because both the numbers have the same number of digits. Both, ITIN and SSNs, are 9-digit combinations beginning with a 9 and having number 7 or 8 as the 4th digit. This is the main reason why people get confused between these two Tax ID numbers. However, they differ in terms of their uses as ITINs, unlike SSNs, are granted to non-resident individuals while SSNs are provided to resident individuals.

·      ITIN Obtainers

Many immigrants have ITINs. These individuals are the ones who do not have a lawful status in the United States. This is why they obtain an ITIN. The following people can obtain an ITIN number;

  • A foreign national student who is a resident of the United States.
  • A non-resident foreign national who invests or owns a business in the United States and enjoys income from the business but lives in another country. They are liable to pay off the taxes from that income because it is taxable under government law.
  • A spouse or a dependent of a foreign national living in the US on a temporary visa.
  • A spouse or a dependent of a lawful permanent resident or United States citizen.

·      No Work Authorization

An ITIN is the Tax ID number that does not grant legal status to individuals, and that is the reason for not getting work authorization. Holding an ITIN does not provide legal immigration status to the individual; thus, it cannot prove legal presence of the person in the United States. To work in the United States, you first need to have an E2 visa and then, acquire an SSN number.

·      ITINs Builds the Tax Base

When the IRS started the ITIN program in the year 1996, it built the tax base gradually. By granting ITINs, more and more people get to pay the taxes. According to reports, around 3 million people paid over $870 million in taxes with the help of getting ITIN numbers in 2010. The IRS, as a result, has increased its tax earnings by taking this initiative.

·      ITIN Holders Cannot Enjoy All the Tax Benefits

Another important thing which all ITIN number holders should know is that all ITIN holders cannot enjoy all the tax benefits. The United States citizens can enjoy a number of benefits but a being a non-resident of the United States, an ITIN holder is not eligible to enjoy all the tax benefits. For example, an ITIN holder cannot benefit from the Earned Income Tax Credit (EITC).

·      ITIN Holders and Child Tax Credit

As mentioned above, the ITIN holders cannot enjoy all the tax benefits. However, there are a few which they are eligible for. They can take the advantage of the Child Tax Credit service. Depending upon the applicant’s income, the Child Tax Credit (CTC) is allocated to them. It can be worth as much as $1,000 for each child. According to sources, over 4 million children of United States citizens enjoy the benefits offered from the child tax credit (CTC) service.

·      Bank Account

Though the ITIN restricts the non-residents from availing certain benefits, there is a benefit that the non-residents can enjoy; they can open an interest bearing bank account. Those who do not have an SSN and cannot work, they can at least open a bank account in the United States and make transactions whenever required.

·      Driver’s License

There are some states of the United States which have allowed the ITIN holders to receive the driver’s license without an SSN number. This means that the ITIN holders in some states are lawfully eligible to drive a car. They can be granted a State Identification Card too. However, some states have still not granted permission to the individuals holding just an ITIN number; they still require the people to have SSNs to drive a car in their state.

·      Proof of Residency

Whenever an immigrant has to show proof of their residency in the United States, they can always show their ITIN as proof. Also, at some point in life, they will have to show their tax returns and filing history too. ITINs can help them in this regard too. Despite being non-residents, an ITIN is still proof of their residency in the United States.

·      Privacy

The IRS understands the privacy concerns of people; hence, they have designed the application process very carefully. They facilitate tax payment without sharing personal information of the applicant. Privacy of the individual’s personal information is of paramount importance to them. In this regard, Section 6103 of the Internal Revenue Code determines that the IRS is not eligible to release the information of any individual to other government agencies except those who require it for tax purposes.

If you need to renew your ITIN number, we can help. Please call us at 407-344-1012, or email us at info@freedomtaxfl.com.

Application for ITIN Number & Important Aspects to Consider

Now that you know the basic facts about the ITIN, you need to know the application process of ITIN number and a few important things before understanding the ITIN number renewal. Here are the things you need to consider when obtaining an ITIN.

·      Fill Form W-7

This is the first step when applying to get an ITIN. You need to fill out Form W-7 and submit it to the IRS along with the tax returns. Now, you need not apply for the ITIN in person; you just need to mail it. On the approval of the application, the ITIN will be sent to you through the mail or on the provided address.

·      Submit Original Documents

When you submit the documents when applying for an ITIN, you need to submit the original documents that can properly verify your foreign status and identity. There are 13 documents that you need to ensure this. You need to ensure that all those documents are original to avoid any discrepancies.

·      IRS Agents

When you find it difficult to file Form W-7 or are confused at the time of submission of the document, you can always consult the IRS agents for help. Along with the IRS agents, there are some Taxpayer Assistance Centers as well which help you out in such matters. Ideally, you should hire a lawyer if you are new to all of this. Especially, now that you may also require a new ITIN number, you need to hire someone for ITIN number renewal.

All about the New Law for ITINs

Despite the fact that an individual has not used an ITIN for years, they could still use it as and when needed. However, this is a thing of the past now. Now that the new laws have been introduced and the individuals also require ITIN Number renewal, a lot of people or tax payers are confused on this matter. According to the new laws and regulations of the PATH Act, the IRS affirmed that the ITINs that have not been in use for 3 consecutive years will be deactivated. This new law has caused panic among a lot of tax payers who are now required to renew their ITIN.

If you are concerned about ITIN number renewal, you should first understand the reason behind it. According to the PATH Act and the new laws, an ITINnot used for the federal tax return purposes consecutively for 3 years will expire on December 31 of the 3rd year. Now that there are so many taxpayers asking about the ITIN number renewal, this means that many people require a renewal schedule to see if they need to renew it or not.

There are two conditions which require ITIN number renewal. They are listed below.

·      Unused ITINs

ITINs which have not been used for the past 3 consecutive years will no longer be in effect for the tax purposes from 2017. Therefore, ITIN holders who have not used their ITINs from 2013 to 2015, they should think about getting an ITIN number renewal to file taxes in the future.

·      Expired ITINs

The ITINs that were used by individuals before the year 2013 will soon become expired in the month of December. This is why taxpayers have to renew the ITIN on rolling basis. The ITINs that have 78 and 79 in the middle will expire first. So, those who have these numbers in the middle of their ITINs should consider ITIN number renewal from October 1st 2016.

The IRS has sent letters to taxpayers to inform them about the ITIN number renewal process. If you also need to file taxes, you should start preparing for the renewal process. Those who do not have 78 and 79 digits in the middle should wait as the IRS will announce the ITIN number renewal date for them later on.

ITIN Number Renewal Process

Now that you know you may also be required to renew your ITIN, you may want to know the ITIN number renewal process. You should renew your ITIN number so that you can pay your taxes. Check out the procedure below to discover the ITIN number renewal process.

If you do not renew your ITIN, you will not be able to use it for your tax filing and tax return matters. So, it is necessary to follow the procedure below.

  • The first step is just like the one you do to obtain your ITIN. You need to fill the Form W-7 properly.
  • The next step is to fill the application for the IRS ITIN.
  • Then, you need to attach all the 13 important documents that are required to obtain an ITIN number.
  • Additionally, you need to ensure using the newest version of Form W-7. This new version is readily available for you when you will go for the renewal. If you do not wish to go in person, you can fill it online. Ensure to take help from a lawyer because the new form has certain changes and modifications that require to be filled correctly.
  • After filling Form W-7, you should ensure submitting it with the help of an IRS Certified Acceptance Agents. If you do not find that appropriate, you can either call or take an appointment with the IRS Taxpayer Assistance Center.

Final Word

Now that the ITIN number renewal process has begun, you should wait no more and get your ITIN numbers renewed as soon as possible. This will benefit you in many ways and will help you in filing taxes and obtaining tax returns. If you find the ITIN number renewal process difficult, you should hire a credible lawyer in this regard to help you get through the process seamlessly. Good luck!

If you need to renew your ITIN number, we can help. Please call us at 407-344-1012, or email us at info@freedomtaxfl.com.

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