Obtaining an ITIN (Individual Taxpayer Identification Number)
To apply for an ITIN, an individual must submit Form W-7, Application for IRS Individual Taxpayer Identification Number, to the IRS. While the documentation requirements remain consistent, the submission process is specific:

By Mail: Applications can be mailed directly to the IRS address listed in the Form W-7 instructions.

In Person: Applicants may visit an IRS Taxpayer Assistance Center (TAC) or utilize the services of a Certified Acceptance Agent, such as Prestivo Tax. We are authorized by the IRS to review original documentation, certify copies, and assist in submitting the W-7 application, often streamlining the process.

Important Note: IRS offices face reduced staffing and service levels. For individuals outside the U.S., applications may be submitted at a U.S. diplomatic mission or via established international mail procedures.

ITIN Expiration & Renewal

• ITINs are no longer permanent and must be renewed upon expiration to avoid processing delays and refund adjustments.
• ITINs issued before 2013 have expired according to a phased schedule. If you have not already renewed, you must submit a new Form W-7.
• ITINs issued in 2013 or later will expire if not used on a federal tax return for three consecutive years.

Filing a tax return with an expired ITIN will result in processing delays, potential refund reductions, and the issuance of an IRS Math Error Notice. You have only 30 days from the notice date to respond. Prestivo Tax can assist you in navigating this process and ensuring timely renewal or correction.

Tax Credits & ITINs: Critical Limitations
Recent legislation has imposed strict limitations on claiming key tax credits when an ITIN is involved:

Child Tax Credit (CTC) & American Opportunity Tax Credit (AOTC): An ITIN issued in the current year can no longer be used to claim these credits on a prior-year amended or late-filed return. Credits may only be claimed on a timely-filed current-year return submitted with the ITIN application.

Earned Income Tax Credit (EITC): A taxpayer with an ITIN on the return has never been eligible for the EITC. Furthermore, the prior ability to amend past returns to claim the EITC after obtaining a Social Security Number (SSN) is no longer allowed.

Increased Penalties for Erroneous Claims
The penalties for improper claims of refundable credits have been significantly expanded. Starting with the 2016 tax year, an accuracy-related penalty of 20% applies to erroneous claims for the Earned Income Tax Credit, Child Tax Credit, and American Opportunity Tax Credit. The reasonable cause exception remains, but the waiver for erroneous refunds has been eliminated.