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.
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
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.
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
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.
— 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.
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.
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