CAA CAA ITIN Renewal and Expiration Policies 1 — Questions and Answers
Question 1: An ITIN that has not been used on a federal tax return for how many consecutive tax years will automatically expire?
- 3 consecutive years (Correct answer)
- 2 consecutive years
- 5 consecutive years
- 1 year
Correct answer: 3 consecutive years
Per IRS policy under the PATH Act, ITINs unused on a federal tax return for three consecutive tax years automatically expire.
Question 2: Which IRS form is used to renew an expired Individual Taxpayer Identification Number?
- Form W-7 (Correct answer)
- Form W-9
- Form 1040-NR
- Form SS-4
Correct answer: Form W-7
Form W-7, Application for IRS Individual Taxpayer Identification Number, is used for both new ITIN applications and renewals of expired ITINs.
Question 3: Which middle digits on ITINs were the FIRST group scheduled to expire under the IRS rolling expiration program established by the PATH Act?
- 78 and 79 (Correct answer)
- 70 and 71
- 90 and 91
- 88 and 89
Correct answer: 78 and 79
ITINs with middle digits 78 and 79 were the first batch to expire under the PATH Act, with expiration effective December 31, 2016.
Question 4: When is the earliest a taxpayer can submit an ITIN renewal application for ITINs expiring at year-end?
- October 1 of the expiration year (Correct answer)
- Only after the ITIN expires
- January 1 of the expiration year
- 90 days after notification
Correct answer: October 1 of the expiration year
The IRS recommends submitting renewal applications beginning October 1 for ITINs expiring at the end of that same calendar year.
Question 5: What happens to refundable credits such as the Additional Child Tax Credit when a return is filed with an expired ITIN?
- The credits are disallowed until the ITIN is renewed (Correct answer)
- The credits are automatically approved
- The entire return is rejected
- The credits are reduced by 50%
Correct answer: The credits are disallowed until the ITIN is renewed
The IRS disallows refundable credits like the ACTC and AOTC on returns filed with an expired ITIN until the taxpayer completes renewal.
Question 6: Can multiple family members renew expiring ITINs simultaneously on a single submission?
- Yes, using the IRS family renewal option on Form W-7 (Correct answer)
- No, each family member must renew separately
- Only spouses can renew together
- Only if all ITINs expire in the same calendar year
Correct answer: Yes, using the IRS family renewal option on Form W-7
The IRS allows a taxpayer, spouse, and dependents to renew all expiring ITINs at the same time using the family renewal option when completing Form W-7.
CAA CAA ITIN Renewal and Expiration Policies 1
An ITIN that has not been used on a federal tax return for how many consecutive tax years will automatically expire?