Gokce Tandogdu
ITIN Specialist, itin.net
Your ITIN does not expire in the traditional sense, but the IRS can invalidate it if it has not been used for a federal tax return in three consecutive years. If your ITIN has been inactive for this period, you must apply for a new one. This article will explain how to determine if your ITIN is still valid for tax filing purposes and what steps to take if it is no longer accepted.
What is an ITIN and Why Does it Have an Inactivity Rule?
An Individual Taxpayer Identification Number (ITIN) is issued by the Internal Revenue Service (IRS) to individuals who need a U.S. taxpayer identification number but do not have, and are not eligible to obtain, a Social Security number (SSN). This includes non-resident aliens filing U.S. tax returns, resident aliens filing U.S. tax returns, and dependents or spouses of U.S. citizens or resident aliens. The primary purpose of an ITIN is for federal tax reporting.
The IRS implemented an inactivity rule for ITINs to manage their database and ensure that the numbers issued remain relevant for tax administration. The rule states that any ITIN that has not been included on a federal tax return for three consecutive tax years will be considered invalid by the IRS for tax purposes. This means if you haven't filed a federal tax return using your ITIN for three years in a row, the IRS may stop accepting it. This policy helps the IRS maintain accurate taxpayer records and prevents the misuse of unused identification numbers. You generally need an active ITIN to file U.S. tax returns, claim tax treaty benefits, or open certain U.S. financial accounts.
How to Know if Your ITIN is Expired (Inactive)
The most direct way to know if your ITIN is no longer considered valid by the IRS is when you attempt to file a federal tax return and the IRS rejects it due to an invalid ITIN. The IRS will typically send a notice, such as Notice CP-48, informing you that your ITIN is invalid and that you need to reapply for a new one using Form W-7, Application for IRS Individual Taxpayer Identification Number. This notice will explain the process for reapplying.
If you are unsure about the status of your ITIN, you can check its validity by reviewing your past tax filings. If you have filed a federal tax return using your ITIN within the last three tax years, it is likely still active. For example, if you are preparing to file your 2023 tax return, and you filed returns for 2022, 2021, and 2020 using your ITIN, it should be considered valid. However, if you have not filed any federal tax return using your ITIN for the 2021, 2022, and 2023 tax years, your ITIN may have been deactivated.
It is important to note that the IRS does not provide a direct online tool or phone number where you can simply call and ask, "Is my ITIN expired?" The determination is primarily made by the IRS when a tax return is processed. Therefore, the most practical approach is to assume your ITIN is still valid if you have used it in the past three years for filing. If you encounter issues during tax filing, the IRS notice will be your primary indicator. The keyword "how do i know if my itin is expired" often leads individuals to this understanding: the IRS's acceptance of the number on a filed return is the ultimate test.
What Triggers ITIN Invalidation?
The primary trigger for an ITIN to be considered invalid by the IRS is inactivity. Specifically, if an ITIN has not been used on a U.S. federal tax return for three consecutive tax years, the IRS may stop accepting it. For instance, if your ITIN was last used on a tax return filed for the 2020 tax year, and you have not filed any federal tax returns for the 2021, 2022, and 2023 tax years, your ITIN would likely be deemed inactive and no longer valid for the 2023 filing season. The IRS begins this inactivation process after the third consecutive year of non-use.
Certain ITINs issued before January 1, 2013, were also subject to a mandatory renewal requirement. However, this policy has since been updated. Currently, the primary rule is inactivity. If you received an ITIN and have not used it for filing within the three-year window, it will be deactivated. The IRS communicates these changes and policies through various channels, including notices sent to taxpayers and updates on its official website. It's crucial to stay informed about IRS policies, as they can affect your tax obligations and compliance.
How to Reapply for a New ITIN if Yours is Deactivated
If you have determined that your ITIN is no longer valid because of inactivity, you will need to apply for a new one using Form W-7, Application for IRS Individual Taxpayer Identification Number. The application process for a new ITIN is similar to applying for your first one. You will need to complete Form W-7 accurately and provide original or certified copies of identification documents and proof of foreign status. The IRS requires specific documentation to verify your identity and foreign status, such as a passport, national identity card, or driver's license.
There are several ways to submit your Form W-7 application:
- By Mail: You can mail your completed Form W-7, along with original or certified copies of your identification documents, and a U.S. federal tax return (unless you qualify for an exception) to the IRS address listed in the Form W-7 instructions. Mailing original documents carries a risk of loss, so certified copies from the issuing agency are preferred.
- Through a Certified Acceptance Agent (CAA): You can apply through a CAA. These agents are individuals or entities authorized by the IRS to help taxpayers apply for ITINs. A significant benefit of using a CAA is that they can verify your original identification documents and forward your application, along with the documentation, to the IRS. This means you do not have to mail your original documents, reducing the risk of loss. itin.net is a service that can assist you with this process.
- At an IRS Taxpayer Assistance Center (TAC): Some IRS TACs offer ITIN application services by appointment. You can call the IRS to schedule an appointment and bring your completed Form W-7 and original identification documents. However, not all TACs provide this service, and wait times can be long.
When reapplying, you must include a federal tax return with your Form W-7 application, unless you qualify for an exception. Common exceptions include applying for an ITIN to claim tax treaty benefits or to comply with specific IRS requirements. The tax return you submit must be for the year you are claiming to have needed the ITIN. For example, if you need an ITIN for the 2023 tax year, you would submit your 2023 tax return with the Form W-7.
What Identification Documents are Required for a New ITIN?
To apply for a new ITIN, you must submit documentation that proves both your identity and your foreign status. The IRS has specific requirements for these documents. The most commonly accepted primary identification document is a valid U.S. passport. If you do not have a passport, you can use a combination of other documents. These documents must include your photograph, name, address, date of birth, and a signature.
Acceptable alternative documents include:
- National identity card (must contain photograph, name, address, date of birth, and expiration date)
- U.S. driver's license
- Foreign driver's license
- Civilian I.D. card (for military and dependents)
- Visa
- U.S. State identification card
- Foreign voter's registration card
- Consular card (issued by the embassy or consulate of your country of citizenship)
- U.S. Citizenship and Immigration Services (USCIS) photo I.D.
If you are applying for an ITIN for a dependent who is under 18 years old, the primary document can be a birth certificate (if it contains the required information) along with a school record or medical record showing the child's name and U.S. address. If the applicant is under six years old and not applying with a parent, a birth certificate is sufficient.
It is crucial to provide original documents or certified copies from the agency that issued them. If you submit copies, they must be certified by the issuing agency. When applying through a Certified Acceptance Agent (CAA) like itin.net, they can authenticate your original documents and return them to you, saving you the risk of mailing them to the IRS.
Processing Times and Costs for ITIN Applications
Applying for a new ITIN, whether by mail or through a CAA, involves processing by the IRS. The IRS aims to process Form W-7 applications within 7 to 11 weeks from the date they are received. However, this timeframe can vary significantly depending on the volume of applications the IRS is handling, the accuracy of the submitted application, and whether original documents were mailed. During peak tax season, processing times can extend.
There is no fee charged by the IRS to apply for an ITIN. The Form W-7 application is free. However, if you choose to use a Certified Acceptance Agent (CAA) service, there might be a fee charged by the agent for their assistance in verifying your documents and submitting your application. These fees vary by agent. If you are mailing your original identification documents to the IRS, you should consider the cost and risk associated with sending them via a secure, trackable shipping method.
If you are reapplying because your ITIN was deactivated due to inactivity, and you are submitting your Form W-7 with a federal tax return, the processing time for the ITIN application is generally the same. The IRS will process your tax return and your ITIN application concurrently. If your application is approved, you will receive a new ITIN assignment letter. If there are issues with your application, you will receive a notice from the IRS explaining the problem.
When to Consider Getting an EIN or Forming a U.S. LLC
While an ITIN is essential for personal tax filing and certain other purposes, it is not a substitute for an Employer Identification Number (EIN) or a U.S. business structure like a U.S. LLC. If you are planning to conduct business in the U.S., you will likely need an EIN. An EIN is a nine-digit number assigned by the IRS to business entities operating in the United States for identification purposes. It is required for tax filing purposes for businesses, opening business bank accounts, and hiring employees.
An EIN is obtained by filing Form SS-4, Application for Employer Identification Number, with the IRS. The application process for an EIN is generally much faster than for an ITIN, often taking only a few days to a week when applying online. This is a crucial step for any non-resident planning to establish a U.S. business presence. You can learn more about applying for an EIN on our /ein page.
Furthermore, if you are operating a business in the U.S., especially as a non-resident, forming a U.S. LLC is a common and often advantageous choice. A U.S. LLC provides liability protection, separating your personal assets from your business debts. As a foreign owner of a U.S. LLC, you are generally required to file Form 5472, Information Return of a 21st Century State Domestic Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business, annually with the IRS. This form is used to report transactions between the LLC and its foreign owner. Failure to file Form 5472 can result in significant penalties. itin.net can assist with U.S. LLC formation, which includes guidance on operating agreements and registered agent services. Understanding these requirements is vital for compliance when operating a U.S. business. More details can be found on our /llc page.
Opening a U.S. Bank Account
Opening a U.S. bank account is often a necessary step for individuals and businesses operating in the U.S. While some banks may accept an ITIN to open an account, many traditional banks require an SSN or an EIN. However, several modern financial institutions and neobanks cater specifically to international entrepreneurs and non-residents. Services like Mercury, Relay, and Brex are known to provide banking solutions that can be accessed by non-residents, often requiring an EIN and a U.S. business registration, such as a U.S. LLC. Opening a U.S. bank account is a critical component of managing finances for U.S. business activities. Our /bank-account page offers further guidance on this topic, including information on which institutions might be suitable for your needs.
Final Thoughts on ITIN Validity
Understanding how to know if your ITIN is expired, or more accurately, inactive, is key to maintaining tax compliance. Remember, the IRS does not have an expiration date on ITINs. Instead, they deactivate ITINs that haven't been used for federal tax filings for three consecutive years. If your ITIN has been deactivated, you must reapply using Form W-7, providing necessary identification documents and a federal tax return. For assistance with the Form W-7 application process, consider using a Certified Acceptance Agent (CAA). If you are planning to conduct business in the U.S., remember that an ITIN is different from an EIN and forming a U.S. LLC has its own set of requirements and benefits, including the need to file Form 5472. Staying informed about these processes ensures smooth navigation of the U.S. tax system.