This report covers U.S. taxpayers whose Individual Taxpayer Identification Numbers (ITINs) have expired and need to renew their ITINs if they are filing tax returns in 2018.
The U.S. Internal Revenue Service (IRS) is urging taxpayers to complete and submit renewal applications if their Individual Taxpayer Identification Numbers (ITINs) are expiring or have expired.1
Any ITIN not used on a U.S. federal income tax return at least once in the last three consecutive years was due to expire. For instance, those with middle digits of 70, 71, 72, or 80 (xxx-70-xxxx; xxx-71-xxxx; etc.) expired on December 31, 2017. Such expired ITINs would need to be renewed if the taxpayer has a filing obligation in 2018. ITINs that have middle digits 78 or 79 expired on December 31, 2016; however, they can still be renewed.
The renewal process is significant given that tax filing season has just begun; tax returns with expired ITINs could experience processing delays. In addition, taxpayers with expired ITINs may lose eligibility for certain tax benefits until their ITIN is renewed.
Federal income tax returns that are submitted in 2018 with expired ITINs will be processed, but taxpayers will not be eligible to claim exemptions and/or certain tax credits until their ITINs are renewed.
Affected taxpayers are encouraged to renew their ITINs as soon as possible.
The ITIN is a tax identification number used, generally, by individuals who have U.S. income tax filing or payment obligations, but who are not eligible for a Social Security number.
In 2015, Congress passed the Protecting Americans from Tax Hikes (PATH) Act which created an expiration schedule for ITINs.2
The IRS release provides guidance for renewing ITINs that have expired, or are set to expire, based on the expiration schedule included in the PATH Act. Affected taxpayers who need to file a tax return in 2018 are encouraged to renew their ITINs without delay. The release notes: ”An ITIN renewal can take up to 11 weeks for the IRS to complete during the tax season.”
Taxation of International Executives covers relevant income tax and social security rates, together with the key aspects of the tax legislation relating to expatriate employees working in various countries. In addition, planning opportunities, capital taxes, and local taxes are also covered. Taxation of International Executives: United States, the annual publication from KPMG International, has been updated to account for U.S. tax law in effect as of December 31, 2017. This edition also includes provisions affecting individuals introduced by the Tax Cuts and Jobs Act (now Public Law No. 115-97). To access the publication – in a convenient and easy-to-use .html format.
For other countries’ Taxation of International Executives, click here.
The above information is not intended to be "written advice concerning one or more Federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230 as the content of this document is issued for general informational purposes only.
The information contained in this newsletter was submitted by the KPMG International member firm in the United States.
© 2021 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.
Flash Alert is an Global Mobility Services publication of KPMG LLPs Washington National Tax practice. The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.