Are you an illegal immigrant living in the United States? If yes, then you may have an ITIN number. As per the new changes by the Internal Revenue Service though, many ITIN number holders are worried about the renewal process. They are confused and frequently found asking, “Do I need to renew my ITIN number”.
This simple answer is yes, they need to get their ITIN numbers renewed, following the process given by the IRS. The reason for answering, “Do I need to renew my ITIN number” in the positive is that they will not be able to file taxes in the United States promptly without an ITIN number. This can lead to further problems and several complex issues.
With new laws and regulations in place, ITIN holders and tax payers are looking up the ways to renew their ITIN number. They do not know whether they have to re-apply for the ITIN number or simply get their ITIN number renewed. Those who are upset about it and are asking “Do I need to renew my ITIN number”, can hire a credible attorney and take help from them regarding the renewal process.
If you are also one of those tax payers who is concerned and asking, “Do I need to renew my ITIN number”, read this blog and explore the process behind renewing the ITIN number.
Individual Taxpayer Identification Number (ITIN)
Before we go into the details to explore the answer to “Do I need to renew my ITIN number”, you first need to understand what an ITIN number really is. Most of the tax payers who hold an ITIN number do not really know much about it. Basically, the ITIN number is the Individual Taxpayer Identification Number that is one of the main forms of Tax ID numbers. This helps non-resident aliens in filing for taxes while living in the United States. There are two more other types of tax ID numbers, namely Social Security Numbers (SSN) and Employer Identification Number (EIN).
Both of these tax ID numbers also have a similar purpose of issuance that is, fulfilling the tax liabilities. But getting the Tax ID number depends upon the status of the individual.
All these tax ID numbers are provided by the Internal Revenue Service (IRS). ITIN numbers are provided to individuals who are not eligible to get the SSN number or are not getting the SSN number for any reason. Mostly, these individuals are the dependents who want to live in the United States with foreign investors.
Moreover, the ITIN number is a nine digit code starting with 7 or 8. According to the new laws and amendments, the range has been extended. When dependents reside in the United States with the foreign investors, they need to pay off the taxes as a duty. This is why you will find several taxpayers holding ITIN numbers asking “Do I need to renew my ITIN number”. As they will be unable to file taxes with an expired ITIN number, hence, they require a renewal as soon as possible.
Individuals can obtain the ITIN number by filling the Form W-7. The process is not very daunting and lengthy although this was the case previously. Now that there are several alternatives available, instead of going to the IRS office yourself, obtaining the Form W-7 has become easier. The online approach to downloading the Form W-7 has made lives easy. If you are trying to know the answer to “Do I need to renew my ITIN number”, keep reading this blog carefully as we will be discussing the procedure in further sections.
Features of Individual Taxpayer Identification Number (ITIN)
The Individual Taxpayer Identification Number (ITIN) is one of the forms of tax processing numbers that are issued to non-residents. Those who do not have SSN numbers are supposed to pay their taxes using the ITIN number. This means that despite the immigration status, the non-resident individuals have to pay the taxes.
· Fulfilling the Tax Purposes
These numbers are provided by the Internal Revenue Service to non-resident individuals so that they can fulfill their tax obligations. This is the first and core aim of the ITIN number. Those who cannot obtain the Social Security Number (SSN) or are unable to attain it for any reason, can file for the taxes using these numbers. Residents and non-residents, both have to pay the taxes on a yearly basis.
Additionally, the ITIN numbers have specific expiration dates but they do get renewed too. This change came with the new law and amendments, and several people are now asking “Do I need to renew my ITIN number”, which means they need to know the renewal process to get the number active again.
· Different From Other Tax ID Numbers
As mentioned above, there are three types of tax ID numbers. All three of them do cater to the same purpose and objective of filing for taxes, but all three of them are given to tax payers depending upon their status in the country. Since many people get confused between ITIN numbers and other tax ID numbers, they often think that all of them are interchangeable.
The Individual Taxpayer Identification number is solely for those individuals who are non-residents. The SSN number is given to those who are residents of the United States, while the Employer Identification Number is given to those individuals or taxpayers who are willing to develop and run a business. You need to keep this in mind that all three of these tax ID numbers are unlike each other.
· Work Authorization
ITIN number is not considered as a legal identity by the government. This is why it is given to non-residents. But people often think that this tax processing number gives them the authorization to work in the United States as well. Holding an ITIN does not provide you with work authorization. If you need to work for the United States, you first need to obtain an E2 visa and obtain an SSN number too. An ITIN number cannot help you in this regard.
· Eligibility for ITIN Numbers
There are certain individuals and immigrants who have the right and eligibility to obtain the ITIN number legally. Those who are legally liable for the ITIN number are listed below.
- A dependent or spouse of a foreign country having a temporary visa.
- A dependent or spouse of United States’ resident or citizen.
- A foreign national student of United States.
- A non-resident alien who has developed and directs their business in the United States and enjoys income from the United States, living in a foreign country.
· Provides Few Tax Benefits
Often, individuals believe that when they get hold of a tax processing number, an ITIN, they can enjoy all the benefits just like legal residents. This is not true. One can only enjoy all the tax benefits if they are holding legal identity within the United States. Since the ITIN number is not considered as legal identity, you cannot enjoy all the tax benefits. For instance, the non-resident aliens cannot enjoy the Earned Income Tax Credit (EITC).
· Benefits in Child Tax Credit
The ITIN number holders should know that they cannot enjoy all the benefits, but they can enjoy the tax credit on children. As the name of the tax implies, the tax credit is for children depending upon the applicant’s income. The child tax credit can be worth as much as $1,000 for each child. According to research, this child tax credit has helped 4 million United States’ ITIN holders.
· Provides Driving License
In addition to the tax benefits, the taxpayers also need to know that the ITIN number does provide them with the eligibility to drive, though this permission is granted only in some states. You need to see if your state allows you to drive using the ITIN number. Be sure to consult your local attorney in this regard to avoid problems in the long run.
· Helps in Opening a Bank Account
No doubt, there are certain restrictions for ITIN number holders and tax payers, but non-residents can successfully open up a bank account. Individuals holding an ITIN number can open up an interest bearing bank account. Those who are unable to work and do not hold an SSN number, they can use their bank account for making transactions.
· Shows Proof of Residency
The ITIN number can be used as proof for determining your residential status. Whenever an immigrant is required to show or prove their status in the United States, they can always show their ITIN number. Some authorities may also ask you to show your filing history as well. Your ITIN number would help you in this regard too.
· Privacy Matters
Taxpayers holding ITIN numbers must be very careful about their ITIN numbers. It is to be kept confidential and even the Internal Revenue Service has a special application process for it. From tax related information to personal information, the ITIN number contains everything in it. The IRS understands the privacy concerns and it is their duty to ensure that your personal information is kept discrete and private. According to Section 6103, the IRS is not eligible to release the information to any government agency except to those who require it for tax purposes.
Are You Asking “Do I Need to Renew My ITIN Number?” – Consider Reading This First
So, now that you know the basic information about the Individual Taxpayer Identification Number (ITIN), we hope you will be able to understand the renewal process properly. If you are still concerned and asking, “Do I need to renew my ITIN number?” you need to know that you would definitely have to renew your ITIN number as per the new laws and amendments of the PATH Act.
According to the new laws, the PATH Act has announced that those ITIN numbers that have not been used consecutively for the past three years will now be deactivated. This new law has made a lot of ITIN number holders worried, which is why they are asking “Do I need to renew my ITIN number?” They are also looking for ways to renew their ITIN now. If you also want to explore the procedure, keep reading the blog as we will be explaining the procedure below.
There are two conditions which might require the renewal of the ITIN number. Those two conditions are elaborated below.
· ITIN Number That Has Not Been Used
One scenario that is making people wonder “Do I need to renew my ITIN number?” is of the unused ITIN number. According to the amendments in the PATH Act, an ITIN number that has not been used since the last three years consecutively will no longer be in effect for tax purposes this year. Therefore, all those ITIN number holders, who have not used the ITIN number from 2013 to 2015, should know that they do require renewal of their ITIN number.
· ITIN Numbers That Have Expired
Another condition is that your ITIN may have expired if you have used it before 2013. These ITIN numbers expired in the month of December 2016. This is why it is better to get these ITIN numbers renewed. According to the PATH Act, ITIN numbers having 78 and 79 in between will expire first. So, all those who are asking “Do I need to renew my ITIN number?” need to check their middle numbers, see if they have these digits, and then yes, they have to renew their ITIN number.
The Internal Revenue Service has sent letters and notices to these individual taxpayers having 78 and 79 in between to get their ITIN numbers renewed. To file your taxes efficiently, you also need to prepare for the renewal process as soon as possible. Those, who do not have these numbers in between, need to wait until the IRS announces their renewal date.
Traditional Application Process and Renewal Process of ITIN Number
Now that you know that only taxpayers, who have 78 and 79 in the middle of their ITIN numbers, need to get their ITIN numbers renewed while the rest have to wait until the IRS announces further details, you may be looking for ways to renew the ITIN number. Before we help you in understanding the renewal process for the ITIN number, you need to know the traditional process first.
Traditional ITIN Application Process
- Firstly, you have to obtain the Form W-7 from the Internal Revenue Service. You can obtain it through any way, i.e. from their main IRS office as well as online. After obtaining it, ensure that you fill it properly as inappropriate or incorrect information may also reject the application.
- After filling it carefully, you also need to submit the original documents with the form. Verify each and every document before submitting it with the form.
- After submitting the documents and form, you will be able receive your ITIN number as soon as the Internal Revenue Service finds all your information genuine.
Are You Asking “Do I need to renew my ITIN number?” – Check Out the Renewal Process
Now that you may require renewal of your ITIN number, read the renewal process carefully below. The renewal process is almost the same as the traditional process with some tweaks in it.
- The first step to get your ITIN number renewed is to fill the W-7 form again. You can obtain it directly from the IRS office as well as online, from the IRS main website. Ensure that you obtain the latest and newest version of the Form W-7. Otherwise, the IRS will not accept your application.
- After this step, you also need to attach all the important and relevant documents with the form. There are thirteen documents in total and you have to attach each one of them to obtain the ITIN number.
- After you are done with filling the form and have attached the documents, make sure that you ask for help from Certified Agents of the IRS. They will help you in getting your ITIN number renewed in a short time period and quickly.
It’s 2017, and all those who have not used their ITIN number since 2013 will have expired ITIN numbers now. The renewal process of the ITIN number has also begun and if you are also worried and asking, “Do I need to renew my ITIN number?”, now you know the answer. You should also get it renewed soon, to file your taxes easily. Novice taxpayers, who do not know how to renew the ITIN number, should call us at 407-344-1012, or email us at email@example.com. We can help you get through the renewal process seamlessly.