As a Certified Acceptance Agent, as recognised by the IRS, we are starting to receive numerous requests for W-7 renewals from existing US tax filers. This change has got many people worried about their ITIN status and is even identified as a ‘hot topic’ on the IRS website.
Due to the Protecting Americans from Tax Hikes Act (PATH) passed in 2015, any ITIN not used at least once in the last three years will effectively expire. In other words, if you have not been filing 1040 NRs in the past 3 years your ITIN may become invalid starting January 2017.
Additionally, the IRS will be issuing renewals for all ITINs issued before 2013 starting with ITINs middle digits of ‘78’ and ‘79’.
Starting in January 2017 individuals with ITINs may have to renew for US tax purposes. Individuals may face ITIN renewals on the following grounds:
- If an ITIN has not been used at least once between 2013 and 2015 and;
- ITIN’s issued before 2013 will begin expiring starting with middle digits of ‘78’ and ‘79’ (i.e. XXX-78-XXXX)
The IRS should write to the individuals affected and any individual that may be subject to these changes will need to renew their ITIN before filing or claiming a tax refund after January 2017.
If you believe that you may be facing a renewal please don’t hesitate to contact Warrener Stewart and we would be happy to assist you as Certified Acceptance Agents in completing a W-7 form, certification of overseas identification or any additional US tax related issues.
Summary of our process as a Certified Acceptance Agent:
- Provided us with details of your income or draft 1040 NR
- W-7 identification meeting of proof of identity and passports
- W-7 completion
The process is not simply a notarisation process but a complete test to ensure that you are eligible for an ITIN.
We estimate our cost for completing the process (excluding 1040NR completion) is £150 + VAT.
However, we are very strict on ensuring you meet the criterion before setting up a meeting.
We are happy to complete the renewal process for both existing and new clients, so if you believe that you may be effected by the renewal please don’t hesitate to contact us.