Wake-up calls jolt us into reality. So, prepare yourself for a thunderbolt. Did you know that if you qualify for a tax refund the IRS won’t send it to you if your ITIN expired? Yes, it’s true but this article informs you about ITIN renewal and what steps to take if your ITIN expired. Incidentally, we know you worked hard and deserve every penny coming to you!
What Is an ITIN and Why Do You Need It to Get a Tax Refund?
An ITIN is a unique 9-digit tax identification number issued to foreigners and others who don’t qualify for a Social Security Number. By the way, if you’ve never applied for an ITIN, see this article to learn more about it and how to apply for one. The IRS created the “Individual Taxpayer Identification Number” so undocumented immigrants and others could earn income, file taxes, and submit tax payments. An ITIN identifies you as the legal taxpayer on a tax return, regardless of your immigration status.
When your ITIN expires, the IRS doesn’t issue a tax refund even though you filed a tax return. Here’s information quoted directly from the IRS website regarding how they handle expired ITINs.
“Until the ITIN is renewed, a return with an expired ITIN will be processed and treated as timely filed, but it will be processed without certain tax credits and/or any claimed exemptions and no refund will be paid at that time. The taxpayer will receive a notice from the IRS explaining the delay in any refund and that the ITIN must be renewed.”
Please be assured you aren’t without hope because your ITIN expired. Keep reading to find out how the ITIN renewal process works to remedy the problem.
When Does Your ITIN Expire? Has Your ITIN Expired?
If you haven’t used your ITIN in the last three years to submit a Federal tax return, it expired on December 31, 2019. ITINs issued before 2013 with middle digits 83 – 87 also expired at the end of 2019. Additionally, ITINs with middle digits of 70 – 82 have also expired.
If your ITIN expired, you should receive a notice from the IRS but don’t wait to receive one. You can begin the renewal process as soon as you determine your ITIN has expired.
Follow this diagram to determine if your ITIN expired:
How to Renew Your ITIN
To begin the ITIN renewal process, complete form W-7. Follow these instructions when filling out the form. We recommend that you print a copy of the instructions or view them when completing Form W-7.
Make sure to check the box at the top right of the form that you are renewing an existing ITIN. It’s also important to answer the “reason you’re submitting Form W-7.” Take time to complete each line of the form before moving on to the next section. You will avoid making costly errors that could delay processing your ITIN renewal.
Likewise, take note of these ITIN renewal reminders as you complete the form.
- You will need to send required support documents to establish your foreign status and identity (examples: passport, USCIS photo ID, US State Department Visa, birth certificate, US driver’s license, etc.).
- Renew in person at designated IRS Taxpayer Assistance Centers or mail your W-7 and supporting documents to one of the two addresses listed in the instructions.
- If you need help completing the form, you can use the services of an Acceptance Agent (AA) or a Certifying Acceptance Agent (CAA). This individual will also sign the form below where you sign as the applicant.
- Allow up to 7 weeks to hear back from the IRS regarding your ITIN renewal application status. It takes 9-11 weeks when you apply during IRS’s peak season (January 15 – April 30).
Additional Benefits of an ITIN
Having a valid ITIN enables the IRS to process the tax refund of money you overpaid. Your business can always use an extra surge of cash to put toward expenses, improvements, or make a deposit to your business savings account.
Aside from those benefits, an ITIN enables you to apply for business checking and savings accounts. Furthermore, some states accept an ITIN to qualify for a driver’s license or state identification card. Immigrants can prove how long they’ve been in the United States by submitting copies of tax returns they filed using an ITIN.
Another huge plus for having an ITIN is that some lenders will require an ITIN in lieu of a Social Security Number to apply for a business loan. To find out how this works, read How to Get ITIN Loans to Finance Your Business When You Don’t Have an SSN. You may be surprised to learn how easy it can be to obtain financing.
Did you know that you can use a valid ITIN in lieu of an SSN to apply for a business loan? Some lenders, like Camino Financial, only require an ITIN to start the loan process.
Just so you know, Camino Financial is one of those lenders that offer financial assistance to business owners that don’t have an SSN. Not only that, our loan process is quick, easy, and transparent. We provide personalized service, don’t require collateral to secure your loan, and work with you to graduate to a second loan with a higher amount and a better rate after making timely payments for 9 months.
Our motto “No Business Left Behind” motivates everything we do which also includes providing tools, resources, and ongoing education regarding finances and business management.
Make Sure Your ITIN Didn’t Expire
As you can see, keeping your ITIN current has many advantages. An ITIN is a valuable tool in your box of business owner treasures. However, it’s not just a tax number to file tax returns. Having one opens up many doors for your small business. One of those doorways is gaining access to finances to grow your business.
Think about the importance of having extra money to purchase equipment, supplement your cash flow, or hire more staff. Why not request a quote today to see if you qualify for a business loan. Remember: all we need from you is your ITIN to advance your business forward. So, don’t delay getting an ITIN or renew the one you already have.