The IRS announced last summer that beginning in 2016, it would start deactivating Individual Taxpayer Identification Numbers (ITINs). If an ITIN has not been used on a US income tax return in at least one year during a period of five consecutive years, the ITIN will expire this year. An exact date has not yet been set for the expirations, but it can be expected to start shortly as we are already two months into the year.

The IRS issued this policy, applicable to all ITINs regardless of year of issuance, in order to ensure anyone using ITINs for legitimate tax purposes may continue to do so, while eliminating the approximately 15 million ITINs that have been issued but are not being used.

If the ITIN is used regularly, however, the ITIN will not expire until it has not been used for five consecutive years.

ITINs are available to non-US persons who are not eligible for a US Social Security Number but are required to participate in the US tax system, such as:

• A non-resident alien who is required to file a US tax return with respect to US source income or is filing a return to claim a refund of US taxes withheld or paid
• A non-resident alien eligible to obtain the benefits of a reduced rate of withholding under an income tax treaty relating to US source income
• A US resident alien who qualifies for US residency status based on the substantial presence test and must file a US tax return
• A non-resident alien student, professor, or researcher who is required to file a US tax return or is claiming an exception to the tax return filing requirement

ITINs are for federal tax purposes only, and do not relate to US immigration status or any right to work in the US.

If an ITIN has been deactivated by the IRS, an individual can reapply for another ITIN using Form W-7 and follow the guidance as if it was a first-time application.

For more about Individual Taxpayer Identification Numbers, please refer to the IRS’s page on ITINs or IRS Publication 1915.

If you have an ITIN that you believe may be deactivated and you need to reapply, or you require an ITIN for the first time, please contact us for assistance.