Gokce Tandogdu
ITIN Specialist, itin.net
Your Individual Taxpayer Identification Number (ITIN) does not expire. However, the IRS invalidates ITINs that have not been used on a federal tax return for three consecutive tax years. If your ITIN has become invalid due to non-use, you must apply for a new one by submitting Form W-7, Application for IRS Individual Taxpayer Identification Number. This is the primary scenario for what ITIN needs to be renewed. The IRS began this invalidation process in 2016, and it affects ITINs that were not used on a tax return filed between 2016 and 2022. If you previously had an ITIN and have not filed a U.S. federal tax return using it for the past three or more consecutive years, your ITIN is likely invalid. You cannot simply 'renew' an invalid ITIN; you must go through the application process again as if you were applying for the first time. This process requires you to prove your identity and foreign status to the IRS.
When an ITIN Becomes Invalid
The IRS invalidates ITINs that are not used on a federal tax return for three consecutive years. This rule applies to all ITINs, regardless of when they were issued. The IRS initiated a large-scale invalidation of ITINs that were not used on a federal tax return for the 2016, 2017, or 2018 tax years. Subsequently, ITINs not used on returns for the 2019, 2020, or 2021 tax years were also invalidated. If you received your ITIN before 2013, and it has a middle digit range of 50 through 64 (e.g., 9XX-50-XXXX), it was invalidated and required a new application. Those with middle digits 70 through 87 (e.g., 9XX-70-XXXX) were also subject to invalidation if not used for three consecutive years. The IRS sends a notice, CP-48, to taxpayers whose ITINs are due to expire because of this non-use policy. Receiving a CP-48 notice means you need to reapply for an ITIN if you intend to file a U.S. tax return that requires one. The key takeaway for determining what ITIN needs to be renewed is the three-year non-use rule.
Why ITINs Are Not 'Renewed' Like Passports
ITINs are not like passports or driver's licenses, which have a fixed expiration date printed on them and a straightforward renewal process. An ITIN is a taxpayer identification number assigned by the IRS for tax administration purposes. It is valid for the lifetime of the taxpayer unless it is invalidated by the IRS for non-use, or if the taxpayer obtains a Social Security Number (SSN). If your ITIN is invalidated due to non-use, you are not renewing it; you are applying for a new ITIN. This means you will need to complete Form W-7 again, provide supporting documentation for your identity and foreign status, and submit it to the IRS, often through a Certified Acceptance Agent (CAA) or by mail. The process is identical to your initial application. The IRS uses ITINs to track tax filings and ensure compliance. When an ITIN is not used for an extended period, it suggests the individual may no longer be subject to U.S. tax filing requirements, or they may have obtained an SSN. The invalidation policy helps the IRS maintain an accurate and efficient taxpayer database.
Who Needs to Reapply for an ITIN?
Any individual who has an ITIN that has been invalidated by the IRS due to non-use for three consecutive tax years must reapply. This includes:
- Individuals who previously filed U.S. tax returns but have not filed for the last three or more consecutive years and now need to file again.
- Individuals who were issued an ITIN before 2013 and had middle digits between 50 and 64, and have not used it since.
- Individuals who were issued an ITIN with middle digits between 70 and 87 and have not used it for three consecutive years.
- Individuals who have obtained a Social Security Number (SSN) but mistakenly continued to use their ITIN for filing. If you have an SSN, you must use it for all tax filing purposes, and your ITIN becomes invalid. You should not reapply for an ITIN if you are eligible for or have been issued an SSN.
If you are unsure whether your ITIN is still valid, you can check its status. The IRS provides a way to verify an ITIN's validity, though this can take time. Alternatively, if you attempt to file a tax return with an invalidated ITIN, the IRS will notify you that the number is invalid and that you need to reapply. Many individuals seeking to establish a U.S. business, such as forming a U.S. LLC or opening a U.S. bank account, may discover their ITIN is invalid when they attempt to use it for these purposes, as these activities often require a valid ITIN for tax reporting (like with Form 5472 for disregarded entities) or identification.
Documents Required for a New ITIN Application
When reapplying for an ITIN, you must submit the same types of documentation as your initial application. The core requirements are proving your identity and your foreign status. You will need to submit Form W-7 along with original or certified copies of your identification documents. Accepted identification documents include:
- U.S. federal tax return: This is a mandatory requirement. The Form W-7 must be submitted with a valid U.S. federal income tax return, unless you qualify for an exception (such as for treaty benefits or specific IRS exceptions). If you are reapplying because your ITIN was invalidated due to non-use, you will typically be filing a return for the current or prior tax year.
- Foreign identification document: You must provide an original or certified copy of one of the following:
- Passport (unexpired and issued by your country of citizenship or nationality)
- National identity card (must contain your photograph, name, date of birth, and expiration date)
- U.S. driver's license
- State identification card
- Foreign military identification card
- Visa
- U.S. Citizenship and Immigration Services (USCIS) photo ID
- U.S. identification document: You must also provide one of the following:
- Birth certificate (if the applicant is under 18)
- Foreign-issued identification document (if it contains the applicant's name, photograph, address, date of birth, and expiration date)
- Civilan identification card
If you are applying based on treaty benefits, you will need additional documentation, such as a Form W-8BEN and proof of foreign status. The IRS provides detailed instructions in the Form W-7 instructions. It is crucial to ensure all documents are current and valid. Expired documents will not be accepted. If you do not wish to mail your original documents to the IRS, you can use the services of a Certified Acceptance Agent, which is where itin.net can assist. CAAs are individuals or entities authorized by the IRS to help taxpayers apply for ITINs and can verify your original identification documents, returning them to you on the same day.
How to Apply for a New ITIN
There are three primary ways to submit your Form W-7 application:
- Mail your application to the IRS: You can mail your completed Form W-7, along with your original or certified identification documents and your tax return, to the IRS address listed in the Form W-7 instructions. Be aware that mailing original documents carries a risk of loss or damage, and it can take the IRS several months to process your application and return your documents.
- Apply through a Certified Acceptance Agent (CAA): This is often the most convenient and secure method. CAAs, like those at itin.net, are trained and authorized by the IRS to help you complete Form W-7 and verify your original identification documents. The CAA will review your application for completeness and accuracy before forwarding it to the IRS. Crucially, CAAs can authenticate your documents, meaning you do not have to mail your original passport or other vital IDs. They will return your original documents to you immediately after verification. This significantly reduces the risk of losing your documents.
- Visit an IRS Taxpayer Assistance Center (TAC): Some IRS TACs offer ITIN application services by appointment. You must call the IRS to schedule an appointment and bring your original documentation with you. However, appointment availability can be limited, and not all TACs provide this service.
Regardless of the method chosen, ensure your Form W-7 is filled out completely and accurately. Any errors or missing information can lead to delays or rejection of your application. If you are applying for an ITIN to file a U.S. LLC related tax form, such as Form 5472, ensure that the tax return you are attaching to the W-7 is the correct one. For example, if you are a single-member LLC and the sole member is a non-resident alien, you will typically file Form 1040-NR, U.S. Nonresident Alien Income Tax Return, along with Form 5472 and Form 1120-F (if applicable), and then attach the Form W-7.
Processing Times and Costs
There is no fee charged by the IRS to apply for an ITIN. The Form W-7 application itself is free. However, if you use a service provider or a Certified Acceptance Agent (CAA), they may charge a fee for their assistance. At itin.net, we offer services to help you through the application process, and our fees cover the expertise and convenience we provide in ensuring your application is correctly submitted. The IRS processing times for ITIN applications can vary significantly. Historically, it could take anywhere from 7 to 14 weeks for the IRS to process a Form W-7 application, especially during peak tax season. These times are estimates and can be longer depending on the volume of applications the IRS receives. If you mail your application directly to the IRS, you will also need to factor in the time it takes for your original documents to be returned to you, which can add several more weeks. Using a CAA can sometimes expedite the initial review of your application, as CAAs are trained to submit complete and accurate forms, potentially reducing the chances of delays caused by errors. Remember, if you are applying for an ITIN to establish a U.S. business, you may also need an Employer Identification Number (EIN), which can be obtained by filing Form SS-4 with the IRS.
Common Mistakes When Reapplying for an ITIN
Reapplying for an ITIN involves many of the same potential pitfalls as the initial application. Awareness of these common mistakes can help ensure a smoother process:
- Incomplete or inaccurate Form W-7: Missing information, incorrect names, or improperly entered Social Security Numbers (if applicable) are frequent reasons for rejection. Double-check every field.
- Incorrect or expired identification documents: Submitting photocopies instead of originals or certified copies, or using identification that has expired, will lead to your application being denied. Ensure your passport or national ID is valid.
- Missing or incorrect tax return: The Form W-7 must be submitted with a valid U.S. federal tax return unless an exception applies. Ensure the tax return is for the correct tax year and is complete.
- Not understanding exceptions: If you are applying for an ITIN based on an exception (e.g., to meet requirements for a U.S. LLC without filing a tax return that year, like for Form 5472), ensure you are correctly claiming and documenting that exception.
- Failure to use an SSN if you have one: If you have been issued an SSN, you must use it for all tax purposes. Attempting to use an ITIN after receiving an SSN will cause issues and may lead to rejection of your filings. You cannot reapply for an ITIN if you are eligible for or have an SSN.
- Mailing original documents without using a CAA: While possible, mailing original identification documents to the IRS significantly increases the risk of them being lost or stolen. Using a CAA ensures your originals are handled securely and returned promptly.
What Happens After Your ITIN is Reissued?
Once your new ITIN application is approved, the IRS will mail you an ITIN Assignment Letter, which is similar to the original CP-565 notice you might have received when first issued an ITIN. This letter confirms your new ITIN. You can then use this new ITIN for all future U.S. tax filing and identification purposes. It is crucial to update any financial institutions or other entities where you previously used your old (now invalidated) ITIN with your new number. This is particularly important if you have a U.S. bank account or are involved in U.S. business activities, as accurate identification is required for reporting. You should also ensure that any tax returns filed using the invalidated ITIN are corrected or addressed with the IRS if necessary, though typically, the reapplication process with a new tax filing rectifies this. If you are a non-resident alien with U.S. source income or engaged in a U.S. trade or business, remember that you have ongoing filing obligations. For instance, if you own a disregarded U.S. LLC, you will need to continue filing Form 5472 annually, using your valid ITIN. If you are unsure about your ongoing U.S. tax obligations, consulting with a tax professional is advisable.
Getting Help with ITIN Reapplication
Navigating the process of reapplying for an ITIN can be complex, especially if you are unfamiliar with U.S. tax forms and procedures. The IRS provides resources, but they are often general. For personalized assistance, consider working with a Certified Acceptance Agent. CAAs are authorized by the IRS to assist with ITIN applications, verify your original documents, and ensure your application is complete and accurate before submission. This can significantly reduce processing times and the likelihood of errors. The team at itin.net consists of experienced specialists who can guide you through each step of the reapplication process, from filling out Form W-7 to understanding the documentation requirements. If your tax situation is complicated, involves foreign taxation issues, or you are unsure about your filing obligations, seeking advice from a qualified tax professional or an attorney specializing in international tax law is recommended. They can provide tailored guidance based on your specific circumstances. Remember, while the ITIN itself does not expire, its validity is contingent on its use. If yours has lapsed, understanding what ITIN needs to be renewed involves recognizing that you need to go through the application process again.