Gokce Tandogdu
ITIN Specialist, itin.net
An Individual Taxpayer Identification Number (ITIN) issued by the IRS does not expire and, therefore, cannot be reactivated. If your ITIN has become invalid for use, or if you have never been issued one and need one for tax purposes, you must apply for a new ITIN by submitting Form W-7, Application for IRS Individual Taxpayer Identification Number. The IRS assigns ITINs to individuals who are required to have a U.S. taxpayer identification number but who do not have, and are not eligible to obtain, a Social Security number (SSN). This includes many non-resident aliens who need an ITIN to file U.S. tax returns or to claim tax treaty benefits.
Why an ITIN Might Be Considered "Invalid"
An ITIN is considered invalid for use in two primary scenarios, neither of which involves a formal "reactivation" process. Instead, these situations necessitate a new application.
Non-Use of an ITIN
For tax years beginning after December 31, 2012, the IRS implemented a policy where any ITIN that has not been used on a federal tax return for three consecutive filing years becomes invalid. This means if you haven't filed a U.S. tax return using your ITIN for three consecutive years, the IRS will deactivate it. The IRS sends out notices, such as Notice CP-48, to inform taxpayers that their ITIN is no longer valid and that they must reapply if they need one for future tax filings. This policy was introduced to streamline the ITIN program and ensure that issued numbers are actively used for their intended purpose.
Changes in Tax Law or IRS Policy
Occasionally, the IRS may issue guidance or change policies that affect the validity or usability of certain ITINs. For instance, the Tax Cuts and Jobs Act of 2017 introduced significant changes to U.S. tax law, some of which may indirectly affect how ITINs are used or the requirements for obtaining them. While these changes don't typically "invalidate" an existing ITIN in the same way as non-use, they can alter the tax obligations that necessitate an ITIN in the first place. If you previously used an ITIN for a specific purpose that is no longer applicable due to tax law changes, you might not need an ITIN anymore, or you might need one for a different reason requiring a new application.
How to Apply for a New ITIN
Since "reactivating" an ITIN is not possible, the process involves applying for a new one. The application is straightforward, but requires careful attention to detail to avoid delays. The primary form used is Form W-7, Application for IRS Individual Taxpayer Identification Number. You will need to provide documentation to verify your identity and foreign status.
Gathering Required Documentation
To apply for a new ITIN, you must submit Form W-7 along with original or certified copies of documents proving your identity and foreign status. The IRS requires one of the following combinations:
Documentary Proof of Identity and Foreign Status: You can submit original documents or certified copies from the issuing agency that show your name, photograph, address, date of birth, and nationality. Accepted documents include:
- Passport
- National Identity Card (must contain photo, name, address, DOB, expiration date)
- U.S. Driver's License
- Foreign Driver's License
- Civil Birth Certificate (foreign)
- National Health Insurance Card (foreign)
- Voter Registration Card (foreign)
- Military Identification Card (foreign)
- Visa
- U.S. State Identification Card
- Foreign Military Identification Card
- Foreign, state, or local identification card
If you submit original documents to the IRS, they will be mailed back to you, which can take several weeks. To avoid this risk, many applicants opt to use a Certified Acceptance Agent (CAA), such as itin.net, to verify their original documents. This allows you to keep your original documents while the CAA certifies them for the IRS application.
Exception Documents: In some cases, specific documents can serve as both proof of identity and foreign status. For example, a U.S. passport is sufficient on its own. Similarly, some foreign birth certificates or national identification cards may meet the criteria.
Proving the Need for an ITIN
In addition to identity and foreign status documentation, you must demonstrate why you need an ITIN. This is typically done by submitting a valid U.S. federal tax return with your Form W-7 application. If you are claiming tax treaty benefits, you will need to include Form W-7, Schedule A (Form W-7), and documentation supporting your treaty claim. If you are filing for an ITIN to comply with Form 5472 requirements for reporting transactions with a U.S. LLC, you will submit Form W-7 along with your Form 1040-NR (if applicable) and Form 5472. The need for an ITIN is usually tied to a specific tax filing obligation or treaty benefit.
Methods for Submitting Your ITIN Application
There are three primary ways to submit your Form W-7 application to the IRS:
1. Mail Your Application Directly to the IRS
You can mail your completed Form W-7, along with all supporting documentation and your tax return, to the IRS address listed in the Form W-7 instructions for the Austin, Texas Service Center. This is the most common method but also the one with the longest processing times, as you must mail your original documents or certified copies. The IRS will process your application and mail your ITIN back to you. This process can take anywhere from 7 to 11 weeks, sometimes longer during peak tax seasons.
2. Apply Through a Certified Acceptance Agent (CAA)
Applying through a Certified Acceptance Agent (CAA), like itin.net, offers a more convenient and secure process. CAAs are individuals or entities authorized by the IRS to help taxpayers apply for ITINs. They can verify your original identification documents and forward your completed Form W-7 application to the IRS on your behalf. This means you do not have to mail your original passport or other vital documents, as the CAA's certification letter substitutes for the original documents. This method significantly reduces the risk of losing your important documents and can sometimes lead to faster processing by the IRS, though the IRS processing times themselves remain the same. Using a CAA can simplify the entire how to reactivate itin number process.
3. Visit an IRS Taxpayer Assistance Center (TAC)
In some cases, you may be able to apply for an ITIN in person at an IRS Taxpayer Assistance Center (TAC). However, TACs do not issue ITINs on the spot; they will forward your application to the IRS ITIN Operation in Austin, Texas, for processing. You must make an appointment in advance, and you will need to bring your original identification documents or certified copies. The IRS advises that TACs have limited appointment availability, and this option may not be as efficient as using a CAA.
Processing Times and Costs
There is no fee charged by the IRS to apply for an ITIN. However, if you use a Certified Acceptance Agent (CAA), they may charge a service fee for their assistance. These fees vary by provider. The IRS processing time for a new ITIN application can range from 7 to 11 weeks from the date the application is received. This timeframe can be longer during busy tax seasons (January to April) or if the application is incomplete or contains errors. It is crucial to submit all required documents correctly to avoid delays.
Common Mistakes to Avoid
When applying for a new ITIN, especially if you previously had one that is now invalid, several common mistakes can cause delays or rejection:
- Incomplete Form W-7: Ensure all required fields are filled out accurately and completely. Missing information is a primary reason for delays.
- Incorrect or Missing Supporting Documents: Failing to provide the correct identification documents or certified copies can lead to rejection. Remember, you need proof of identity and foreign status, plus evidence of your need for an ITIN (usually a tax return).
- Not Submitting a Tax Return: For most applicants, a valid U.S. federal tax return must be filed with the Form W-7. If you are applying solely for tax treaty benefits, specific instructions apply, and you may need Form W-7, Schedule A.
- Mailing Original Documents Without a CAA: While the IRS will return original documents, there is always a risk of loss or damage during transit. Using a CAA for document verification mitigates this risk.
- Incorrectly Claiming Tax Treaty Benefits: If you are applying to claim benefits under a tax treaty, ensure you understand the specific requirements and fill out Form W-7, Schedule A correctly. Incorrect claims can lead to the denial of benefits and delays in ITIN issuance.
What Happens After You Get Your New ITIN?
Once your new ITIN application is approved, the IRS will mail you a notice containing your ITIN. You can then use this new ITIN for all future U.S. tax filings and other purposes that require a U.S. taxpayer identification number. It is essential to keep this notice in a safe place. If you are forming a U.S. business, such as a U.S. LLC, you will likely need to apply for an Employer Identification Number (EIN) or Form SS-4 as well, especially if the business will have employees or operate as a corporation or partnership. Opening a U.S. bank account is another common step for businesses, and having an EIN is often a prerequisite for this. Many non-residents also find that obtaining an EIN and setting up a U.S. LLC are crucial first steps before opening a U.S. bank account.
When to Seek Professional Assistance
While the ITIN application process is generally manageable, seeking professional assistance can be beneficial, especially if you are unsure about the documentation requirements, tax treaty benefits, or the overall U.S. tax filing obligations. Certified Acceptance Agents (CAAs), like the specialists at itin.net, are trained to help you through every step of the Form W-7 application process, ensuring accuracy and protecting your sensitive documents. For complex tax situations, or if you are unsure about your U.S. tax residency or filing requirements, consulting with a qualified tax professional or an enrolled agent is highly recommended. They can provide personalized advice based on your specific circumstances and help you navigate the intricacies of the U.S. tax system. Remember, itin.net is a leading ITIN application service, helping individuals worldwide.