Do You Have an Unused ITIN?

Last updated on August 26, 2015

If you have an unused Individual Tax Identification Number (ITIN), the IRS may deactivate it if you have not used it for five consecutive years. This is in accordance with the new IRS policy that the IRS announced last week. Even though at present the IRS has not deactivated any ITINs, it will begin to do so in 2016.

Individual Tax Identification Numbers are tax processing numbers that the IRS issues to individuals who do not have and are not eligible for a Social Security Number, but are still required to file a federal income tax return.

The new policy change replaces the existing policy that any ITINs issued after January, 2013, will expire automatically even if they are used properly by taxpayers. Taxpayers whose ITINs expired would have had to get them “refreshed.” The IRS recently changed this policy to ease the burden it placed on taxpayers.

Under the new policy, ITINs will expire only if they go unused for five consecutive years. If they are properly using their ITINs, taxpayers will not need to refresh or reapply their ITIN. The IRS will start deactivating unused ITINs in 2016, to allow taxpayers time to adjust to the policy changes.