New Rule for Individual Taxypayer Identification Numbers

New guideline will take effect next year

irsDo you have an Individual Taxpayer Identification Number? Do you use it? An ITIN is a number for the sole purpose of filing taxes, and it is issued to people who are not eligible to receive a Social Security Number, such as foreign nationals and resident and nonresident aliens who are required to file or make payments under U.S. law.

The IRS has now implemented a new policy stating that an ITIN that is not used for five consecutive years will expire. Numbers will not begin expiring until 2016 in order to give people time to adjust to the change.

What does this mean for you? It means that you need to file with an ITIN at least once in a five year period in order to keep yours active. If it expires, you will have to reapply for a new number.

The new policy has another stipulation. This stipulation is that there will no longer be mandatory expirations of ITINs. You will not have to reapply simply to keep your number, as filing taxes will keep your number active. This is a much more convenient way of keeping ITINs active. This new system will benefit everyone that has an ITIN and ease the burden of paperwork as long as you are filing taxes at least once every five years.

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