Review the following ITIN topics for more information.
What is an ITIN?
The IRS explains –
"An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service. It is a nine-digit number that always begins with the number 9 and has a range of 70-88, 90-92, or 94-99 in the fourth and fifth digit. IRS issues ITINs to individuals who are required to have a U.S. taxpayer identification number, but who do not have, and are not eligible to obtain, a Social Security Number (SSN) from the Social Security Administration (SSA).
ITINs are issued regardless of immigration status because both resident and nonresident aliens may have a U.S. filing or reporting requirement under the Internal Revenue Code. Individuals must have a filing requirement and file a valid federal income tax return to receive an ITIN, unless they meet an exception.
ITINs are for federal tax reporting only, and are not intended to serve any other purpose. IRS issues ITINs to help individuals comply with the U.S. tax laws, and to provide a means to efficiently process and account for tax returns and payments for those not eligible for Social Security Numbers (SSNs). An ITIN does not authorize work in the U.S. or provide eligibility for Social Security benefits or the Earned Income Tax Credit. IRS issues ITINs to foreign nationals and others who have federal tax reporting or filing requirements and do not qualify for SSNs. A non-resident alien individual not eligible for a SSN who is required to file a U.S. tax return only to claim a refund of tax under the provisions of a U.S. tax treaty needs an ITIN.
Other examples of individuals who need ITINs include:
- A nonresident alien required to file a U.S. tax return
- A U.S. resident alien (based on days present in the United States) filing a U.S. tax return
- A dependent or spouse of a U.S. citizen/resident alien
- A dependent or spouse of a nonresident alien visa holder"
General ITIN Information
Note: Per Publication 17, page 12: You cannot e-file a return using an ITIN in the calendar year the ITIN is issued; however, you can e-file returns in the following years.
Who Needs to Renew
- For tax year 2020:
- ITIN holders who have a "83," "84," "85," "86," or "87," for the fourth and fifth digits of their ITINs that will be filing a federal tax return in tax year 2020.
- All ITIN holders with these digits must renew their ITIN even if they have used it to file returns in the prior 3 years. They will receive a CP-48 Notice that includes the steps for renewing.
- ITIN holders who have not used their ITIN on a tax year 2016, 2017, or 2018 federal return in the last three years, and will be filing a federal tax return in tax year 2018.
ITIN holders who have a "70," "71," "72," "73," "74," "75," "76," "77," "78," "79," "80," "81," or "82," for the fourth and fifth digits of their ITIN must renew since those numbers expired in tax year 2018 and prior. In addition, if an ITIN wasn’t included on a U.S. federal tax return at least once for tax years 2016, 2017, or 2018, that ITIN will expire on December 31, 2019.
When to Renew
- Taxpayers whose ITINs are scheduled to expire may renew their ITIN immediately. You don’t have to wait for IRS to send a notice of expiration if your fourth and fifth digits have been identified for expiration by IRS. You should allow 7 weeks from the mailing date of the Form W-7, for the IRS to notify you of your ITIN application status (9 to 11 weeks if you submit the application during peak processing periods (January 15 through April 30) or if you’re filing from overseas). If the taxpayer's or dependent's ITIN will not be included on any tax return filed in tax year 2018 or later, their expired ITIN does not have to be renewed at this time.
- Expired ITINs included on federal tax returns filed after January 1, 2019, may cause delays in processing. In addition, exemptions and/or certain tax credits will be disallowed. Taxpayers will receive a notice in the mail advising them of the change to their tax return and their need to renew their ITIN. Once the ITIN is renewed, any applicable exemptions and credits will be restored and any refunds will be issued. See IRS Newswire IR-2017-109 for more information.
How to Renew in Drake Tax
- Open Drake Tax.
- Type "W7" in the selector field or click W7 from the Foreign tab.
- Select T/S in the drop list or enter the number of the Dependent for whom the renewal application is needed.
- Check the box Renew an existing ITIN.
- Complete the remainder of the screen as applicable.
- If additional screens are needed for other members of the household, press Page Down for a new screen.
- The completed Form(s) W-7 show in View.
- Print and mail the W-7 form, the tax return (as applicable) and any required documentation to:
Internal Revenue Service
P.O. Box 149342
Austin, TX 78714-9342
The IRS released a new version of Form W-7 in August 2019. This version is not available in Drake18, however, it will be available starting in Drake19. The IRS has indicated that they will generally accept the older version of the form through the end of 2019, however, it may cause delays or other issues. If the updated form is needed before Drake19 is available, the IRS provides a fillable Form W-7. The fillable feature is not available in all browsers. See the IRS website for more information.
Per IRS ITIN Tax Tip 2016-01, you will need the following documents to renew your ITIN number with the IRS:
- A completed Form W-7, Application for IRS Individual Taxpayer Identification Number (Rev 9-2016).
- You do not need a completed tax return for the renewal application. You must include the identification documents with the form.
- You can complete a Form W-7 within Drake Tax by going to the Foreign tab > W7 Application for ITIN screen (located on the Other Forms tab in Drake15 and prior).
- Form W-7 is not an e-filable form.
- Proof of foreign status and identity; some documents that will suffice include:
- Passport (Note: You can use a passport as a stand-alone document for dependents with a U.S. date of entry. Otherwise, an additional ID from the list below is required)
- National ID card (must show photo, name, current address, date of birth and expiration)
- U.S. driver's license
- Birth certificate (required for dependents under 18)
- Foreign driver's license
- U.S. state ID card
- Foreign voter's registration card
- U.S. military ID card
- Foreign military ID card
- U.S. Citizenship and Immigration Services (USCIS) photo identification
- Medical records (only dependents under 6)
- School records (dependents under 14, or under 18 if a student)
Only original documents or certified copies will be accepted.
- Dependent requirements- If choosing to renew the entire family at once. For dependents from countries other than Canada or Mexico or dependents of U.S. military members overseas, a passport with a U.S. entry date may serve as stand-alone identification. Along with the passport, dependent applications require:
- U.S. medical records for dependents under age 6, or
- U.S. school records for dependents under age 18
- U.S. school records for dependents age 18 and over or,
- Rental statement with the applicant’s name and U.S. address or
- Utility bill with the applicant’s name and U.S. address or
- Bank statement with applicant’s name and U.S. address
Failure to renew your ITIN before filing a tax return can delay certain credits or timely refunds.
For more information about ITINs, Renewals, and initial W-7 Applications, see IRS ITIN Expiration FAQs and Related Links below.