IRS to Invalidate Unused ITINs Unless Renewed by Daniel Janovitz

Daniel Janovitz, Holland & Knight LLP, comments on a recent change by the IRS which will require individuals with old or inactive ITINs to renew them. The renewals are explained in Notice 2016-48. Janovitz summarizes,

The Internal Revenue Service (IRS) is requiring individuals with inactive or old individual taxpayer identification numbers (ITINs) to renew their ITINs. The renewals impact individuals who received ITINs prior to 2013. The requirement also applies to individuals who have not used their ITINs for three consecutive years. An ITIN can be renewed by filing a Form W-7 with the individual’s income tax return or in a separate filing. If a taxpayer uses an expired ITIN, it can delay his or her refund and may cause a taxpayer to be ineligible for certain tax credits, including the Child Tax Credit and the American Opportunity Tax Credit.

Section 203 of the Protecting Americans from Tax Hikes Act of 2015 (PATH Act) modified Section 6109 of the Internal Revenue Code, impacting the manner in which ITINs are issued and renewed. This month, the IRS issued Notice 2016-48 explaining how the PATH Act changes will be implemented.

Read the full post here: IRS to Invalidate Unused ITINs Unless Renewed

Posted by Allison Trupp, Associate Editor, Wealth Strategies Journal