Overview

An Individual Taxpayer Identification Number or ITIN is a nine-digit ID number issued by the IRS for certain resident and nonresident aliens that need to file a tax return, but are not eligible for an SSN. ITINs start with 9 and are only used for tax filing purposes. See Publication 1915 and General ITIN Information for details.

Initial Application

Creation

If the applicant is the primary taxpayer, you can use the Drake Tax - Creating Returns with Temporary ITINs feature to create the initial return for paper-filing. Then use the W7 screen on the Foreign tab to produce Form W-7.

If the applicant is the spouse or dependent, open the return and use the W7 screen on the Foreign tab to produce Form W-7. Where possible, name, address, and birth date information will pull from other data entry on the return (as indicated by override fields). All other fields should be completed as applicable.

• If the ITIN applicant is the taxpayer or spouse, choose either T or S respectively in the T/S drop list.

• For dependents, enter the number of the dependent whose information should be used in the Dependent box. This number corresponds to the order in which dependents are entered on screen 2.

• Multiple W-7 forms may be generated by pressing Page Down for a new screen.

• The field, If Yes, enter TIN or EIN, is an SSN field in the software. The W-7 cannot be e-filed. When you print the form, the field prints without dashes.

• If you are, or need to apply to be, an Acceptance Agent see Drake Tax - ITIN Authorized Acceptance Agents for more information.

Filing

Form W-7 cannot be electronically filed. It must be submitted on paper with the tax return and appropriate documentation. In some cases, Form W-7 can be submitted without a tax return. See the Form W-7 Instructions.

Allow 6 weeks for the IRS to notify the taxpayer of their ITIN (8-10 weeks if submitted during peak processing periods, or if filing from overseas).

Changing to Valid ITIN

To change the ITIN associated with the return:

1. Select Tools > File Maintenance > Change ID Number on Return.

2. Enter the temporary SSN/ITIN generated by the software in the field indicated.

3. Enter the correct (valid) ITIN in the field indicated.

4. Click Continue.

5. Click Exit when finished.

6. After the file has been changed, it is recommended that you run the Repair Index Files tool to update the Client Name.

ITIN Renewal

Who

Each year, certain ITIN holders are required to renew their numbers. The numbers that are set to expire are listed in Publication 1915 for that year. You can run a report showing clients with ITINs by following the steps in Drake Tax - Generating an ITIN Report. Affected taxpayers will also receive a CP-48 Notice detailing that they are required to renew their expiring ITIN.

When

Taxpayers whose ITINs are scheduled to expire may renew their ITIN immediately.

Federal tax returns that are submitted with an expired ITIN will be processed, however, certain tax credits and any exemptions 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, applicable credits and exemptions will be restored, and any refunds will be issued. See IRS News Release IR-2020-181 for more information.

How

1. Open Drake Tax.

2. Type W7 in the selector field or click W7 from the Foreign tab.

3. Select T/S in the drop list or enter the number of the Dependent for whom the renewal application is needed.

4. ​Check the box Renew an existing ITIN.

5. 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.

6. The completed Forms W-7 show in View/Print mode.

7. Print and mail the W-7 form, the tax return (as applicable) and any required documentation to:

Internal Revenue Service

ITIN Operation

P.O. Box 149342

Austin, TX 78714-9342

Documentation

A completed Form W-7, Application for IRS Individual Taxpayer Identification Number.

• Form W-7 is not an e-filable form.

• Taxpayers submitting a Form W-7 to renew their ITIN are not required to attach a federal tax return, however, taxpayers must still note a reason for needing an ITIN on the Form W-7.

• Spouses and dependents only need to renew their ITIN if filing an individual tax return, or if they qualify for an allowable tax benefit (e.g., a dependent parent who qualifies the primary taxpayer to claim head of household filing status). In these instances, a federal return must be attached to the Form W-7 renewal application.

See the Revised Application Standards of ITIN for the list of acceptable documentation.