Tuesday, August 9, 2016

What Are The ITIN Changes and Will They Affect You?

Today on BizBuilder we're going to be looking at the upcoming changes to ITIN Renewals coming this October and how you can stay up to date for your tax needs.

Recently the IRS announced that there would be revisions to the Individual Taxpayer Identification Number (ITIN) Program thanks to a new law that may require taxpayers to renew their ITINs beginning as early as October. This new law means that ITINs that haven't been used on a federal tax return at least once in the previous three years would no longer be able to use on any tax return unless renewed by the taxpayer. Not only that - but ITINs that issued before 2013 that *have* been used on federal tax returns in the past three years will need to be renewed starting this Fall. The IRS has said they will put a renewal schedule in place to help tax payers.

Taxpayers will need to take immediate action on to prevent a refund delay and to keep from being ineligible for certain tax credits.

So if you will be filing a tax return next year, and if you have an ITIN you have not used in the past year or have an ITIN from before 2013, you will need to renew your ITIN. October 1, 2016 is when ITIN holders can begin filling out the newest Form W-7 Application and follow the instructions to recieve a new ITIN number. The IRS is encouraging taxpayers to plan ahead to make sure there aren't any issues in 2017. Remember if you're unsure about the ITIN changes or if you need to apply for a renewal, there is always the Taxpayer Assistance Center, but remember you'll need to make an appointment ahead of time for that. 

So do your research, and remember to keep yourself up to date with your need to renew your ITIN number for Tax Season 2017!