The Individual Taxpayer Identification Number (ITIN) is a tax identification number issued by the Internal Revenue Service (IRS) for individuals who do not have a Social Security number but need to file a tax return in the United States. Although the ITIN number does not have an explicit expiration date, there are certain situations in which it may need to be renewed or updated to ensure its validity.
How do I know if I need to renew or update my ITIN?
According to the IRS, as of December 31, 2022, ITIN numbers that were not used for returns corresponding to tax years 2019, 2020, or 2021 will expire and must be renewed.
Another situation in which you may need to update your ITIN is if there has been a change in your personal circumstances. For example, if you have gotten married or divorced, had a child, or changed your immigration status, you may need to update your ITIN to reflect these changes.
It is important to note that the ITIN is not a form of identification and cannot be used for anything other than tax purposes. However, you should also be aware that certain restrictions exist on who can apply for an ITIN, and not everyone is eligible.
If the ITIN holder doesn’t renew it, these are some of the consequences:
- Inability to file tax returns
- Inability to claim certain tax credits
- Delays in processing refunds
- Issues with immigration law
In summary, it’s important to renew the ITIN to avoid issues with tax compliance and immigration law. At Legacy Counsel, we can help you with this process. If you have questions, schedule a 15-minute free call here.
