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It’s time again for folks to renew their ITINs…here are some things to remember

New ITIN

Taxpayers with individual taxpayer identification numbers should find out if their number expires this year.  If it does, they should renew it now to avoid delays with their refund when they file their taxes next year.

An ITIN is a tax ID number used by taxpayers who don’t qualify for a Social Security number. Here’s what these taxpayers need to know about which numbers are expiring and how to renew them.

Which numbers are expiring at the end of this year?

Any ITIN with middle digits 83, 84, 85, 86 or 87.
Any ITIN not used on a tax return in the past three years.

What about numbers that expired in the last few years?
ITINs with middle digits 70 through 82 that expired in 2016, 2017 or 2018 can also be renewed.

How does someone renew their number?

Taxpayers with expiring ITINs need to complete renewal application, Form W-7, Application for IRS Individual Taxpayer Identification Number. They should include all required ID and residency documents. Failure to do so will delay processing. until the IRS receives these documents.

When should someone submit their renewal applications?

As soon as possible. With nearly 2 million taxpayer households affected, applying now will help avoid the rush.

What are some tips to avoid common mistakes that are made when submitting their renewal?

  • Indicate the reason for the ITIN on the Form W-7.
  • Mail the proper identification documents. Taxpayers mailing their ITIN renewal applications must include original identification documents or copies certified by the issuing agency and any other required attachments.
  • Include all supporting documentation, such as U.S. residency or official documentation to support name changes.
  • Complete the new W-7 application.

Taxpayers with expiring ITINs should renew them now

ITIN

Taxpayers with expiring individual taxpayer identification numbers should renew their number ASAP. There are nearly 2 million ITINs set to expire at the end of 2019. Taxpayers with an expiring number should renew before the end of this year. This will help avoid unnecessary delays related to their tax refunds next year.

ITINs are used by taxpayers required to file or pay taxes, but who aren’t eligible for a Social Security number.

Here’s info about which ITINs will expire and how taxpayers renew them.

  • These ITINs expire on Dec. 31, 2019:
    • Those not used on a federal tax return at least once in the last three consecutive years.
    • Numbers with middle digits 83, 84, 85, 86 or 87 not already renewed.
  • ITINs with the middle digits 83, 84, 85 or 86, 87 need to be renewed, even if it was used it in the last three years.
  • Taxpayers whose ITIN is expiring and who expect to have a filing requirement in 2020 must renew their number. Others don’t need to take any action.
  • The IRS is sending notices to affected taxpayers. This is a CP48 Notice. It explains the steps to renew the ITIN.
  • Taxpayers who receive the notice after renewing their ITIN don’t need to take further action unless another family member is affected.
  • ITINs with middle digits of 70 through 82 have previously expired. Taxpayers with these ITINs can still renew at any time, if they haven’t already.
  • Those who receive a renewal letter from the IRS can renew the family’s ITINs together. They can do so even if family members have an ITIN with middle digits that aren’t expiring. Family members include the tax filer, spouse and any dependents.
  • To renew an ITIN, a taxpayer must complete a Form W-7 and submit all required documentation. They don’t need to attach a tax return. However, taxpayers must note why they need an ITIN on the W-7.
  • There are three ways taxpayers submit the renewal application:

Taxpayers should be ready to verify their identity when calling the IRS

Taxpayers should be ready to verify their identity when calling the IRS

Taxpayers and tax professionals who call the IRS will be asked to verify their identities.. Being prepared before a call or visit can save taxpayers time by avoiding having to make multiple calls.

Before calling, taxpayers and tax professionals should instead consider using IRS.gov to access resources like the IRS Service Guide to get faster answers to their tax questions.

If a taxpayer decides to call, they should know that IRS phone assistors take great care to only discuss personal information with the taxpayer or someone the taxpayer authorizes to speak on their behalf. To make sure that taxpayers do not have to call back, the IRS reminds taxpayers to have the following information ready:

  • Social Security numbers and birth dates for those who were named on the tax return
  • An Individual Taxpayer Identification Number letter if the taxpayer has one instead of an SSN
  • Their filing status: single, head of household, married filing joint or married filing separate
  • The prior-year tax return. Telephone assistors may need to verify taxpayer identity with information from the return before answering certain questions
  • A copy of the tax return in question
  • Any IRS letters or notices received by the taxpayer

By law, IRS telephone assistors will only speak with the taxpayer or to the taxpayer’s legally designated representative.
If taxpayers or tax professionals are calling about someone else’s account, they should be prepared to verify their identities and provide information about the person they are representing. Before calling about a third-party, they should have the following information available:

  • Verbal or written authorization from the third-party to discuss the account
  • The ability to verify the taxpayer’s name, SSN or ITIN, tax period, and tax forms filed
  • Preparer Tax Identification Number or PIN if a third-party designee
  • One of these forms, which is current, completed and signed:
    • Form 8821, Tax Information Authorization
    • Form 2848, Power of Attorney and Declaration of Representative

Questions regarding a deceased taxpayer require different steps. The caller should be prepared to fax:

  • The deceased taxpayer’s death certificate
  • Either copies of Letters Testamentary approved by the court, or IRS Form 56, Notice Concerning Fiduciary Relationship

Steps to Take Now to Get a Jump on Next Year’s Taxes

Get ready today to file your 2018 federal income tax return.

Tax Reform- Review new IRS Publication 5307, Tax Reform Basics for Individuals and Families, to learn about how the new tax law may affect your tax return next year.

Withholding

What You Need to Know

  • Due to tax changes in the Tax Cuts and Jobs Act, many taxpayers’ withholding went down in early 2018, giving them more money in their paychecks in 2018.
  • You may receive a smaller refund – or even owe an unexpected tax bill – when you file your 2018 tax return next year, especially if you did not adjust your withholding after the withholding tables changed.Other changes that affect you and your family include increasing the standard deduction, suspending personal exemptions, increasing the child tax credit, adding a new credit for other dependents and limiting or discontinuing certain deductions.

What You Need to Do

  • Use the IRS Withholding Calculator to perform a Paycheck Checkup to help you decide if you need to adjust your withholding or make estimated or additional tax payments now.
  • Use your results from this Calculator to submit a new Form W-4, Employee’s Withholding Allowance Certificate, to your employer.
  • Make estimated or additional tax payments if the withholding from your salary, pension or other income doesn’t cover the 2018 income tax that you’ll owe for the year. Form 1040-ES, Estimated Tax for Individualsalso has a worksheet to help you figure your estimated payments.

 

Refunds

What You Need to Know

  • Expecting a refund? Some refunds cannot be issued before mid-February.
  • By law, the IRS cannot issue refunds before mid-February for tax returns that claim the Earned Income Tax Credit or the Additional Child Tax Credit.
  • This applies to the entire refund, even the portion not associated with these credits.
  • While the IRS will process your return when it is received, it cannot issue EITC/ACTC related refunds before mid-February.
  • Your refund may be different – or you may even owe an unexpected tax bill – when you file your 2018 tax return next year.
  • New tax law may affect the tax refund you expect next year. Review new IRS Publication 5307, Tax Reform Basics for Individuals and Families, to learn more.

What You Need to Do

  • Be careful not to count on getting a refund by a certain date, especially when making major purchases or paying other financial obligations.
  • File a complete and accurate return using your year-end W-2, bank and 1099 income statements and include all known refundable credits when you file your original tax return.
  • File when you’ve received all your year-end statements and are ready to do so. If you usually file early in the year and you’re ready to file a complete and accurate return, there is no need to wait to file.
  • Be aware that some returns may require additional review for a variety of reasons and take longer. For example, the IRS, along with its partners in the state’s and the nation’s tax industry, continue to strengthen security reviews to help protect against identity theft and refund fraud.
  • Perform a Paycheck Checkup to help you decide if you need to adjust your withholding or make estimated or additional tax payments now.

 

New Form 1040, Filing Electronically and 2017 Adjusted Gross Income (AGI)

What You Need to Know

  • The Form 1040 for tax year 2018 is a shorter form and replaces the current Form 1040, Form 1040A and the Form 1040EZ.
  • The new Form 1040 can be supplemented with up to six additional schedules if needed.
  • If you prepare and file your own taxes electronically, you must sign and validate your electronic tax return by entering your prior-year AGI or your prior-year Self-Select PIN.
  • Some taxpayers using a software product for the first time may need to provide their 2017 Adjusted Gross Income, or AGI, to e-file their 2018 tax return.
  • If you’re using the same tax software you used last year, you will not need to enter your prior year information to electronically sign your 2018 tax return.

What You Need to Do

  • File electronically in 2019 as you usually do. Since more than nine out of 10 taxpayers use software or a tax preparer, the IRS is working with the tax community to prepare for the Form 1040 update.
  • Check out IRS Free File to learn more about online free tax preparation and e-file options.
  • Taxpayers who file on paper will use the updated Form 1040 and supplement it with any needed schedules.
  • If you are using a software product for the first time and you have a copy of your 2017 federal income tax return, your AGI is on line 37 of the Form 1040; line 21 on the Form 1040-A or line 4 on the Form 1040-EZ.
  • If you don’t have a copy of your 2017 tax return:
    • Ask your paid preparer, if you used one last year.
    • Log in to IRS.gov/account if you are an existing user.
    • Ask the IRS to mail a Tax Return Transcript to you by requesting it here or call 800-908-9946. Allow 5 to 10 days for delivery.
  • Learn more about how to verify your identity and electronically sign your tax return at Validating Your Electronically Filed Tax Return.

 

Individual Taxpayer Identification Number (ITIN)

What You Need to Know

  • You are likely to experience processing delays if you file a tax return using an expired Individual Taxpayer Identification Number.
  • There are two reasons your ITIN would expire December 31, 2018:
    • If you have not used your ITIN on a U.S. tax return at least once for tax years 2015, 2016 or 2017
    • If your ITIN has the middle digits 73, 74, 75, 76, 77, 81 or 82 (9NN-73-NNNN)
  • If your ITIN has middle digits 78 or 79 (expired 12/31/2016), or 70, 71, 72 or 80 (expired 12/31/2017), you can still renew it.

What You Need to Do

  • Renew your ITIN now if it has or will expire and you need to file a U.S. federal tax return in 2019.
  • You don’t need to take any action to renew your ITIN if you are not required to file a federal tax return.
  • Understand the new documentation requirements when applying for, or renewing, an ITIN for some of your dependents.
  • Ensure you submit an accurate W-7 and valid ID documents.
  • Find more information at IRS.gov/ITIN.

 

IRS Help

What You Need to Know

  • IRS.gov is the official IRS website where you can find answers to your questions and resolve tax issues online.
  • Those who earn around $55,000 or less may qualify for free tax help at a VITA or TCE site.
  • IRS Free File has free online options for taxpayers to prepare and e-file their tax returns.
  • The IRS is looking for volunteers for the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) Programs to provide free tax preparation services to their neighbors in 2019.

What You Need to Do

  • Use the Let Us Help You page where you can get help answering most tax questions, get a copy of your tax record and make a payment among other services.
  • You can also call (844) 545-5640 to make an appointment at one of our Taxpayer Assistance Centersif you need face-to-face help.
  • The IRS Services Guide also links you to these and other IRS services.
  • Go to the VITA or TCE page to learn more, then click on the VITA/TCE Locator tool beginning in mid-January to find a site near you that can help you prepare and e-file your return for free, if you qualify.
  • Go to the IRS Tax Volunteer page to learn more and sign up to become a VITA or TCE tax volunteer.

What’s the Difference with Tax ID, Employer ID and ITIN?

What is the Difference Between a Tax ID, Employer ID, and an ITIN?

A Taxpayer Identification Number is a generic term used by the Internal Revenue Service to designate the types of numbers which it allows to be used for tax and identification purposes. While these numbers can be used for identification purposes, they are primarily used to track payments to individuals for federal income tax and other tax purposes.

The possibilities for types of taxpayer ID numbers include:
Social Security number (SSN). A social security number is the most common identifier for personal identification and tax purposes.
Employer ID number. An Employer ID (or EIN, for short) is a federal tax identification number for businesses. Although it’s labeled as an identifier for “employers,” you don’t have to have employees to need an EIN.
Individual Taxpayer ID number (ITIN)
What is an Individual Taxpayer ID Number (ITIN)?
An Individual Taxpayer Identification Number (or ITIN) is nine-digit number issued by the IRS to individuals who must have an identifying number but who are not eligible for a Social Security Number or an Employer ID Number.

ITIN’s are for tax reporting purposes only; they cannot be used for identification purposes. You must get a Social Security number from new employees to be used on Form W-4. An ITIN cannot be used to authorize work in the U.S. or provide eligibility for Social Security or other benefits.

What Taxpayer ID Do LLC’s, Partnership’s, or Corporation’s Use?

Businesses that are registered with the IRS typically use an Employer ID number for business identity. An Employer ID number (EIN) is used by all other types of businesses, even if the business has no employees. Banks often require a new business to have an EIN before they can open a business bank account. You can apply for an EIN online at the IRS website.

Do Businesses Need an ID Number?

If you do business in a state, including having income, hiring employees or selling goods or services, you will also need to get a state tax identification number for . This number is issued when you register with your state government (Secretary of State).

Taxpayers with expiring ITINs should take action now to avoid issues later

Taxpayers with expiring ITINs should take action now to avoid issues later

More than 2 million Individual Taxpayer Identification Numbers are set to expire at the end of 2018. Affected taxpayers who expect to file a tax return in 2019 must submit their renewal applications as soon as possible to beat the rush and avoid refund delays next year.

Here are several facts about which ITINs are expiring and how taxpayers renew them:

  • ITINs that have not been used on a federal tax return at least once in the last three consecutive years will expire Dec. 31, 2018.
  • ITINs with middle digits 73, 74, 75, 76, 77, 81 or 82 will also expire at the end of the year. An example of this is 9NN-73-NNNN. These numbers need to be renewed even if the taxpayer has used it in the last three years.
  • This summer, the IRS is sending the CP-48 Notice, You must renew your Individual Taxpayer Identification Number to file your U.S. tax return, to affected taxpayers with expiring ITINs that have been used at least once in the past three years.
  • The notice explains the steps for taxpayers to take to renew the ITIN if they will include it on a U.S. tax return filed in 2019.
  • Taxpayers who receive the notice after renewing their ITIN do not need to take further action unless another family member is affected.
  • Taxpayers with an ITIN that has middle digits 73, 74, 75, 76, 77, 81 or 82, as well as all previously expired ITINs, have the option to renew ITINs for their entire family at the same time.
  • ITINs with middle digits of 70, 71, 72, 78, 79 or 80 have previously expired. Taxpayers with these ITINs can still renew at any time.
  • To renew an ITIN, a taxpayer must complete Form W-7 and submit all required documentation.

ITINs are used by people who have tax filing or payment obligations under U.S. law but who are not eligible for a Social Security number. ITIN holders who have questions should visit the ITIN information page on IRS.gov and take a few minutes to understand the guidelines.

Tips for Getting Unclaimed 2014 Tax Refunds

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Tips for Getting Unclaimed 2014 Tax Refunds 

The IRS reminds taxpayers they may have money waiting for them. About 1 million taxpayers who did not file a 2014 federal income tax return have unclaimed tax refunds totaling about $1.1 billion. Here are some things taxpayers should know about these unclaimed refunds:

 

  • To collect the money, taxpayers must file their 2014 tax return with the IRS no later than this year’s tax deadline, Tuesday, April 17.
  • The IRS estimates that half of the refunds are more than $847.
  • When a taxpayer who is getting a refund does not file a return, the law gives them three years to claim that tax refund. If the taxpayer does not file a tax return within three years, the money goes back to the U.S. Treasury. For 2014 tax returns, the three-year window closes April 17, 2018.
  • The law requires taxpayers to properly address and mail the tax return to the IRS. It must be postmarked by the April deadline.
  • The IRS may hold the 2014 refunds of taxpayers who have not filed tax returns for 2015 and 2016.
  • The unclaimed money will be applied to any amounts still owed to the IRS or a state tax agency. The money may also be used to offset unpaid child support or past due federal debts, such as student loans.
  • By failing to file a tax return, people stand to lose more than just their tax refund. Many low- and moderate-income workers may be eligible for the earned income tax credit. For 2014, the credit was worth as much as $6,143.
  • Current and prior year tax forms are available on the IRS.gov Forms, Instructions and Publications page or by calling toll-free 800-TAX-FORM. This includes forms 1040, 1040A and 1040EZ for 2014.
  • Taxpayers who are missing forms W-2, 1098, 1099 or 5498 for the years 2014, 2015 or 2016 should request copies from their employer, bank or other payer. Taxpayers who are unable to get missing forms can order a free wage and income transcript at IRS.gov using the Get Transcript Online tool. Taxpayers can use the information on the transcript to file their tax return.

To Help Taxpayers, IRS Clarifies Some Common Early Filing Season Myths

To Help Taxpayers, IRS Clarifies Some Common Early Filing Season Myths

 

With the 2018 filing season in full swing, the Internal Revenue Service today offered taxpayers some basic tax and refund tips to clear up some common misbeliefs.

Myth 1: All Refunds Are Delayed

The IRS issues more than nine out of 10 refunds in less than 21 days. Eight in 10 taxpayers get their refunds faster by using e-file and direct deposit. It’s the safest, fastest way to receive a refund and is also easy to use.

While more than nine out of 10 federal tax refunds are issued in less than 21 days, some refunds may be delayed, but not all of them. By law, the IRS cannot issue refunds for tax returns claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) before mid-February. The IRS began processing tax returns on Jan. 29.

Other returns may require additional review for a variety of reasons and take longer. For example, the IRS, along with its partners in the state’s and the nation’s tax industry, continue to strengthen security reviews to help protect against identity theft and refund fraud.

Myth 2: Delayed Refunds, those Claiming EITC and/or ACTC, will be Delivered on Feb. 15

By law, the IRS cannot issue EITC and ACTC refunds before mid-February. The IRS expects the earliest EITC/ACTC related refunds to be available in taxpayer bank accounts or debit cards starting Feb. 27, 2018, if these taxpayers chose direct deposit and there are no other issues with their tax return. The IRS must hold the entire refund, not just the part related to these credits.

See the Refund Timing for Earned Income Tax Credit and Additional Child Tax Credit Filers page and the Refunds FAQs page for more information.

Myth 3: Ordering a Tax Transcript a “Secret Way” to Get a Refund Date

Ordering a tax transcript will not help taxpayers find out when they will get their refund. The IRS notes that the information on a transcript does not necessarily reflect the amount or timing of a refund. While taxpayers can use a transcript to validate past income and tax filing status for mortgage, student and small business loan applications, they should use “Where’s My Refund?” to check the status of their refund.

Myth 4: Calling the IRS or a Tax Professional Will Provide a Better Refund Date

Many people mistakenly think that talking to the IRS or calling their tax professional is the best way to find out when they will get their refund. In reality, the best way to check the status of a refund is online through the “Where’s My Refund?” tool at IRS.gov or via the IRS2Go mobile app.

The IRS updates the status of refunds once a day, usually overnight, so checking more than once a day will not produce new information. “Where’s My Refund?” has the same information available as IRS telephone assistors so there is no need to call unless requested to do so by the refund tool.

Myth 5: Calling the IRS is the Most Convenient Way to Get Answers to Tax or Refund Questions

The IRS encourages people to check IRS.gov first before calling. The official IRS website – IRS.gov – provides many self-service tools for individuals, businesses and tax professionals. For example, taxpayers can view their tax account, get answers to common questions such as eligibility for a tax benefit or find free tax preparation help.

Myth 6: The IRS will Call or Email Taxpayers about Their Refund.

The IRS doesn’t initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information. Recognize the telltale signs of a scam. See also: How to know it’s really the IRS calling or knocking on your door.

The IRS will NEVER:

  • Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. Generally, the IRS will first mail a bill if taxes are owed.
  • Threaten to immediately bring in local police or other law enforcement groups to have people arrested for not paying.
  • Demand that taxes be paid without giving the taxpayer opportunity to question or appeal the amount owed.
  • Ask for credit or debit card numbers over the phone.

For more information on tax scams see Tax Scams/Consumer Alerts. For more information on phishing scams see Suspicious e-Mails and Identity Theft.

Help for Taxpayers

The IRS reminds taxpayers they have a variety of options to get help filing and preparing their tax return on IRS.gov. Taxpayers can also, if eligible, receive help from a community volunteer. IRS.gov/filing provides complete information on filing options and assistance.

About 70 percent of the nation’s taxpayers are eligible for IRS Free File where IRS partners offer free brand-name software to individuals and families with incomes of $66,000 or less. Free File Fillable Forms   provides electronic versions of IRS paper forms to all taxpayers regardless of income. Before starting, please visit our Fillable Forms User’s Guide & Help page. Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) offer free tax help to people who qualify. Go to IRS.gov and enter “free tax prep” in the search box to learn more and find a nearby VITA or TCE site, or download the IRS2Go smartphone app to find a free tax prep provider in your community.

The IRS also reminds taxpayers that a trusted tax professional can provide helpful information and advice about the ever-changing tax code. Tips for choosing a return preparer and details about national tax professional groups are available on IRS.gov.

Take Steps Now for Tax Filing Season

Get ready today to file your 2017 federal income tax return.

 

Refunds

What You Need to Know

  • Expecting a refund? Some refunds cannot be issued before mid-February.
  • While the IRS will process your return when it is received, it cannot issue related refunds before mid-February.
  • The IRS expects the earliest EITC/ACTC related refunds to be available in taxpayer bank accounts or on debit cards starting on Feb 27, 2018, if they chose direct deposit and there are no other issues with the tax return.

What You Need to Do

  • Be careful not to count on getting a refund by a certain date, especially when making major purchases or paying other financial obligations.
  • File a complete and accurate return and include all known refundable credits with your original return.
  • File when you’re ready. If you usually file early in the year and you’re ready to file a complete and accurate return, there is no need to wait to file.
  • Check Where’s My Refund on IRS.gov or the IRS mobile app, IRS2Go, for your personalized refund status.

 

Adjusted Gross Income (AGI)

What You Need to Know

  • If you prepare and file your own taxes electronically, you must sign and validate your electronic tax return by entering your prior-year AGI or your prior-year Self-Select PIN.
  • Some taxpayers using a software product for the first time may need to provide their 2016 Adjusted Gross Income, or AGI, to e-file their 2017 tax return.
  • If you are using the same tax software you used last year, you will not need to enter your prior year information to electronically sign your 2017 tax return.
  • Using an electronic filing PIN is no longer an option.

What You Need to Do

  • If you are using a software product for the first time and you have a copy of your 2016 federal income tax return, your AGI is on line 37 of the Form 1040; line 21 on the Form 1040-A or line 4 on the Form 1040-EZ.
  • If you don’t have a copy of your 2016 tax return:
    • Ask your paid preparer, if you used one last year.
    • Log in to IRS.gov/account to access your account information.
    • Log in to IRS.gov to get various Form 1040-series transcript types online here. If you need your prior year Adjusted Gross Income (AGI) to e-file, choose the tax return transcript type when making your request.
    • Ask the IRS to mail a Tax Return Transcript to you by requesting it here or call 800-908-9946. Allow 5 to 10 days for delivery.

 

Individual Taxpayer Identification Number (ITIN)

What You Need to Know

  • If you require an ITIN (required in lieu of a Social Security Number) to file a tax return, you are likely to experience processing delays if you file using an expired ITIN.
  • There are two reasons your ITIN would expire December 31, 2017:
    • If you have not used your ITIN on a U.S. tax return at least once for tax years 2014, 2015 or 2016 or
    • If your ITIN has the middle digits 70, 71, 72 or 80   (9NN-70-NNNN)
  • If your ITIN has middle digits 78 or 79, it expired December 31, 2016, but you can still renew it.

What You Need to Do

  • Renew your ITIN now if it has or will expire and you need to file a U.S. tax return in 2018.
  • You don’t need to take any action to renew your ITIN if you are not required to file a tax return.
  • Understand the new documentation requirements when applying for or renewing an ITIN for some of your dependents. See ITIN FAQs for details.
  • Ensure you submit an accurate W-7 and valid ID documents.
  • Find more information at IRS.gov/ITIN.

 

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