August 24th, 2014 10:09 PM by Alan Martin
Unused ITINs to Expire after Five Years
The IRS announces a new policy to ensure that anyone who uses an ITIN for tax purposes can continue to do so, whilst at the same time resulting in the expiration of unused ITINs. There are currently around 21 million ITINs in existence of which approx a quarter are being used on tax returns.
This policy replaces the existing one that went into effect on January 1st 2013 where taxpayers would have to reapply for ITINs every five years even if used properly and regularly by taxpayers. To give all interested parties time to adjust and allow the IRS to reprogram its systems, the IRS will not begin deactivating ITINs until 2016.
Under the new policy an ITIN will expire for any taxpayer who fails to file a tax return for five consecutive years. Any ITIN will remain in effect as long as the taxpayer continues to file US tax returns. A taxpayer whose ITIN has been deactivated and needs to file a US return can reapply using Form W-7 along with the appropriate original or certified identification documentation.