Gokce Tandogdu
ITIN Specialist, itin.net
An Individual Taxpayer Identification Number (ITIN) issued by the IRS does not expire and remains valid indefinitely for most individuals. However, the IRS has specific rules regarding the use and validity of an ITIN, particularly concerning tax filing requirements. The core principle to understand is that while the number itself doesn't have a set expiration date like a driver's license, its utility is tied to your active participation in the U.S. tax system. This means that if you are issued an ITIN, you generally need to use it to file a U.S. federal tax return at least once every three years to keep it active for IRS purposes. If you stop filing U.S. tax returns for three consecutive years, the IRS may revoke or deactivate your ITIN.
This addresses the common question: how long is an itin number valid for? The answer is generally indefinitely, with the crucial caveat of continued tax filing. If your ITIN has been deactivated due to non-filing, you will need to reapply for a new one using Form W-7 when you next require it for tax purposes.
ITIN Validity and IRS Deactivation Rules
The IRS issues ITINs to individuals who need a U.S. taxpayer identification number but do not have and are not eligible for a Social Security number (SSN). This includes many non-resident aliens who have U.S. tax obligations, such as earning U.S. source income, or who wish to claim tax treaty benefits. The ITIN is permanently assigned to the taxpayer and does not change throughout their lifetime. The number is structured like an SSN but begins with the number '9' and has a range of 50-64 or 70-88 in the fourth position.
While the number itself is permanent, the IRS implemented a policy to deactivate ITINs that have not been used on a federal tax return for three consecutive tax years. This deactivation policy was put in place to manage the ITIN system more efficiently and to ensure that the numbers are being used by individuals with ongoing U.S. tax filing requirements. The IRS typically sends out notices, such as Notice CP-48, to individuals whose ITINs are subject to deactivation, informing them of the situation and providing instructions on how to reactivate it if necessary.
If your ITIN is deactivated, you cannot use it for any tax filing purposes. To obtain a new ITIN, you must reapply by submitting a Form W-7, Application for IRS Individual Taxpayer Identification Number, along with the required original or certified copies of identification documents and a valid U.S. federal income tax return. This reapplication process can take several weeks, similar to the initial application.
Who Needs an ITIN and Why it Matters for Validity
Non-resident aliens who earn income from U.S. sources are often required to obtain an ITIN to file their U.S. tax returns. Examples include:
- Foreign individuals receiving income from U.S. partnerships.
- Non-resident aliens who are attending school or undergoing training in the U.S. and receive scholarships or stipends.
- Individuals who are required to file a U.S. tax return or claim a tax treaty benefit but do not have an SSN.
- Spouses and dependents of U.S. citizens or resident aliens who are not eligible for an SSN.
For these individuals, maintaining an active ITIN is critical for compliance with U.S. tax laws. Failure to file when required, or using a deactivated ITIN, can lead to penalties, interest, and delays in processing tax returns or claiming benefits. The validity of your ITIN is directly linked to your obligation and action in filing U.S. taxes.
When an ITIN Might Be Required Even Without Income
Even if you do not have U.S. source income, you may still need an ITIN for various reasons. For instance, if you are a foreign national looking to establish a U.S. business, such as a U.S. LLC, you might need an ITIN for certain banking or business registration purposes. Opening a U.S. bank account for a U.S. entity, especially if you are not a U.S. resident, can sometimes require a taxpayer identification number. While an Employer Identification Number (EIN) is typically used for business entities, in some specific scenarios, an ITIN might be requested or prove beneficial, particularly for the individual owners or members.
Furthermore, certain tax treaty benefits might require you to have an ITIN to claim them, even if the income itself is minimal. For example, if you are a resident of a country with a tax treaty with the U.S. and you are receiving certain types of passive income, you might need an ITIN to claim a reduced withholding rate. Without a valid ITIN, you might be subject to the standard, higher withholding rates.
Reapplying for a Deactivated ITIN
If you discover that your ITIN has been deactivated because you haven't filed a U.S. tax return in three or more consecutive years, you must reapply. The IRS will not automatically reactivate a deactivated ITIN. You will need to complete and submit a new Form W-7 application. This process requires you to provide proof of identity and foreign status, typically through original documents or certified copies from the issuing agency. You will also need to attach a valid U.S. federal income tax return to your Form W-7 application. The tax return you submit must be for the tax year for which you need the ITIN.
When reapplying, you can submit your Form W-7 and supporting documents directly to the IRS at the address listed in the form's instructions, or you can apply through an IRS-authorized Acceptance Agent. Using a Certified Acceptance Agent(CAA) can streamline the process because they are trained by the IRS to assist applicants and can review your documentation, authenticate your original identification documents, and forward your application package to the IRS on your behalf. This can save you the trouble of mailing your original identification documents, which are returned to you by the CAA after verification.
What If You Need an ITIN for a U.S. LLC or Other Business?
For non-residents, establishing a U.S. LLC is a common step towards conducting business in the United States. If you are forming an LLC, you will typically need an Employer Identification Number (EIN) for the business entity itself. You can apply for an EIN using Form SS-4. However, if you, as an individual member or owner of the LLC, do not have an SSN and need a taxpayer identification number for personal tax reporting related to the LLC's income (e.g., if the LLC is taxed as a disregarded entity or partnership and you receive a Schedule K-1), then you will need an ITIN. The income reported on your personal tax return (e.g., Form 1040-NR) would then be linked to your ITIN.
In some cases, foreign individuals may need an ITIN to open a U.S. bank account for their personal use or for a U.S. business. While most U.S. banks prefer an EIN for business accounts, some may accept an ITIN for personal accounts or for certain types of business structures, especially if the individual owner has significant ties to the U.S. or if the bank has specific programs for foreign clients. Without a valid ITIN or SSN, opening a U.S. bank account can be challenging.
How to Keep Your ITIN Active
The simplest way to ensure your ITIN remains valid and active is to file a U.S. federal income tax return each year you are required to do so. This means filing annually if you have U.S. source income, are claiming tax treaty benefits, or are otherwise obligated to file. If you anticipate a period where you will not have U.S. tax filing obligations, but you want to keep your ITIN active, you may be able to file a **