|Return to Tax and Company News|
Post Date: 8/30/2016
|Last Updated: 8/30/2016|
- Notice 2016-48
The IRS issues Individual Taxpayer Identification Numbers (ITINs) to individuals who are required to have a U.S. taxpayer identification number for U.S. tax purposes, but who do not have and are not eligible to obtain a Social Security Number from the Social Security Administration. Under the Protecting Americans from Tax Hikes Act of 2015 (PATH Act), ITINs are now subject to expiration.
ITINs that need to be renewed beginning in 2017. Prior to the PATH Act, a taxpayer applied for and received an ITIN only once. The ITIN remained in effect unless the taxpayer applied for and received a Social Security Number. Under the PATH Act, certain ITINs will no longer be in effect unless they are renewed.
Any ITIN that is not used on a federal tax return for three consecutive tax years, either as the ITIN of an individual who files the return or as the ITIN of a dependent included on a return, will expire on December 31 of the third consecutive tax year of non-use. This rule applies to all ITINs regardless of when the ITIN was issued.
ITINs issued before 2013. Under the PATH Act, for ITINs issued before 2013, ITINs will no longer be in effect according to the following schedule, unless the ITIN has already expired due to non-use for three consecutive years:
- ITINs issued before 2008 will remain in effect until January 1, 2017.
- ITINs issued in 2008 will remain in effect until January 1, 2018.
- ITINs issued in 2009 or 2010 will remain in effect until January 1, 2019.
- ITINs issued in 2011 or 2012 will remain in effect until January 1, 2020.
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