Pub. 7 2018 Issue 3

The CommunityBanker 18 previously had a range of 70-88 in the fourth and fifth digit. Effective April 12, 2011, the range was extended to include: • 900-70-0000 through 999-88-9999, • 900-90-0000 through 999-92- 9999, and • 900-94-0000 through 999-99-9999. The IRS issues ITINs to individuals required to have a US taxpayer identi- fication number but who do not have and are not eligible to obtain a Social Security Number (SSN) from the Social Security Administration (SSA). ITINs are issued regardless of immigration status because both resident and non- resident aliens may have a US filing or reporting requirement under the Inter- nal Revenue Code. ITINs are for federal tax reporting only and are not intended to serve any other purpose. IRS issues ITINs to help individuals comply with the US tax laws, and to provide a means to efficiently process and account for tax returns and payments for those not eligible for Social Security Numbers (SSNs). An ITIN does not authorize work in the US, provide eligibility for Social Security benefits or qualify a de - pendent for Earned Income Tax Credit (EITC) purposes. The PATH Act of 2015 The IRS has made changes to the In- dividual Taxpayer Identification Num - ber (ITIN) program as a result of the Protecting Americans from Tax Hikes (PATH) Act. The Protecting Americans from Tax Hikes Act of 2015 (PATH Act) was enacted December 18, 2015, and included elements designed to protect Americans against identity theft and tax fraud. Issuers of W-2s and 1099-MISC and 1099-Rs are now required to submit forms to the Social Security Administra- tion by January 31 of the year following the end of the tax year, generally Janu- ary 31 of the next year. Expiring ITINs On June 26, 2018, the IRS issued an updated Fact Sheet about expiring indi- vidual taxpayer identification numbers (ITINs). All ITINs not used on a federal income tax return at least once for tax years 2015, 2016 or 2017, will expire on December 31, 2018. The IRS will begin sending the CP-48 notice. Individual Taxpayer Identification Numbers must be renewed to file a US tax return in late summer to taxpayers who have filed a tax return containing an ITIN with the middle digits 73, 74, 75, 76, 77, 81 or 82 (example 9XX73-XXXX) in the last three years. You only need to renew an expir- ing ITIN if it will be included on a US tax return or claim for refund that you plan to file in 2019. • All ITINs not used on a federal income tax return at least once for tax years 2015, 2016 or 2017, will expire on December 31, 2018. • ITINs issued before 2013 with middle digits 73, 74, 75, 76, 77, 81 or 82 will expire at the end of 2018 unless renewed. • ITINs with the middle digits of 70, 71, 72 and 80 expired in 2017 unless renewed. • ITINs with middle digits 78 and 79 expired in 2016 unless renewed. The IRS notice explains the steps to take to renew the ITIN if it will be included on a US tax return filed in 2019. The IRS encourages taxpayers to begin the renewal process as soon as possible to avoid the rush. Taxpayers with these ITIN numbers can renew at any time. Renewing ITINs To renew an expired ITIN, non- US citizen taxpayers must submit a completed Form W-7, Application for IRS Individual Taxpayer Identification Number, and all required identifica - tion documents to the IRS. Individuals must use the most current version of the Form W-7 (Revision 9-2016). Refer to the Form W-7 instructions for guidance. To make the ITIN renewal effort easier and reduce paperwork, all family mem- bers listed on a tax return may renew their ITINs at the same time if family Compliance professionals must understand the rules impacting identification numbers to ensure compliant IRS information reporting and BSA/AML programs. This has become an even more important aspect since implementation of the Beneficial Ownership Rules. ...Continued from page 17