The IRS will begin implementing changes in the Individual Taxpayer Identification Number (ITIN) program which will require many ITIN holders to renew their numbers. The change comes as a result of The Protecting Americans from Tax Hikes Act (PATH) passed by Congress last December.
All ITINs not used on a federal tax return at least once in the last three years will no longer be valid for use on a tax return as of January 1st 2017. Additionally, all ITINs issued before 2013 will begin expiring this year. These ITINs must be renewed before being used on a U.S.tax return.
These changes may impact a large number of non-resident owners of US rental property. Here at Harding Bell International; we are currently reviewing the impact for our current clients and will reach out with more information in due course. According to the IRS, a new Form W-7 will be available from September 2016 with the renewal process beginning October 1st 2016. The IRS has stated that they will only accept renewal applications for ITINs that are scheduled to expire at the end of this year.