close
Share with your friends

United States – IRS Urges ITIN Early Renewals to Prevent Delays

US – IRS Urges ITIN Early Renewals to Prevent Delays

The U.S. Internal Revenue Service on August 17, 2020, issued a release reminding taxpayers to complete and submit renewal applications as soon as possible if their Individual Taxpayer Identification Numbers (ITINs) are expiring or have expired in order to avoid refund and processing delays. 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. Renewal notices will be sent to affected taxpayers later this summer.

1000

Related content

flash-alert-2020-360

On August 17, 2020, the U.S. Internal Revenue Service (IRS) issued a release reminding taxpayers to complete and submit renewal applications as soon as possible if their Individual Taxpayer Identification Numbers (ITINs) are expiring or have expired in order to avoid refund and processing delays.1

WHY THIS MATTERS

With more than 1 million ITINs set to expire at the end of 2020, affected taxpayers are highly encouraged to renew their ITINs early to avoid delays that could affect their tax filings and refunds next year.  Federal income tax returns that are submitted in 2021 with expired ITINs will be processed, but taxpayers will not be eligible to claim certain tax credits and exemptions until their ITINs are renewed.

Background

The ITIN is a tax identification number used, generally, by individuals who have a U.S. income tax filing or payment obligations, but who are not eligible for a Social Security number.  For prior coverage, see GMS Flash Alert 2019-157 (October 17, 2019). 

In 2015, Congress passed the Protecting Americans from Tax Hikes (PATH) Act, which created an expiration schedule for ITINs.2

IR-2020-181

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.  Renewal notices will be sent to affected taxpayers later this summer.

Any ITIN:

—   Not used on a U.S. federal income tax return at least once in the last three consecutive years;

—   With the middle digits 88 (xxx-88-xxxx); or

—   Assigned before 2013 with the middle digits 90, 91, 92, 94, 95, 96, 97, 98 or 99 that has not already been renewed

will expire on December 31, 2020.

Affected taxpayers who need to file a tax return in 2021 are encouraged to renew their ITINs without delay.

FOOTNOTES

1  IR-2020-181 (August 17, 2020) .

2  P.L. 114-113.  For related coverage, see GMS Flash Alert 2015-152, December 23, 2015.   

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 United States.

SUBSCRIBE

To subscribe to GMS Flash Alert, fill out the subscription form.

© 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.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal