Update(Al Dia)

Update(Al Dia)

More than 2 million ITINS to expire this year RENEW SOON

by CDoris Rodriguez on 06/14/18

More than 2 million ITINs to expire this year; Renew soon to avoid refund delays

WASHINGTON — With more than 2 million Individual Taxpayer Identification Numbers (ITINs) set to expire at the end of 2018, the Internal Revenue Service today urged affected taxpayers to submit their renewal applications soon to beat the rush and avoid refund delays next year.

In the third year of the renewal program, the IRS has increased staffing to handle the anticipated influx of W-7 applications for renewal. This third wave of expiring ITINs is expected to affect as many as 2.7 million taxpayers. To help taxpayers, the renewal process for 2019 is beginning earlier than last year.

"Even though the April tax deadline has passed, the IRS encourages people affected by these ITIN changes to take steps as soon as possible to prepare for next year's tax returns," said Acting IRS Commissioner David Kautter. "Acting now to renew ITIN numbers will help taxpayers avoid delays that could affect their tax filing and refunds in 2019. The IRS appreciates the help from partner groups across the nation sharing this information with those with expiring ITIN numbers."

Under the Protecting Americans from Tax Hikes (PATH) Act, ITINs that have not been used on a federal tax return at least once in the last three consecutive years will expire Dec. 31, 2018. In addition, ITINs with middle digits 73, 74, 75, 76, 77, 81 or 82 will also expire at the end of the year. These affected taxpayers who expect to file a tax return in 2019 must submit a renewal application as soon as possible.

ITINs are used by people who have tax filing or payment obligations under U.S. law but who are not eligible for a Social Security number. ITIN holders who have questions should visit the ITIN information page on IRS.gov and take a few minutes to understand the guidelines.

Once again, the IRS is launching a nationwide education effort to share information with ITIN holders. To help taxpayers, the IRS offers a variety of informational materials, including flyers and fact sheets, available in several languages on IRS.gov.

The IRS will continue to work with partner groups and others in the ITIN community to share information widely about these important changes.   

Who should renew an ITIN

  • Taxpayers whose ITIN is expiring and who need to file a tax return in 2019 must submit a renewal application. Others do not need to take any action. ITINs with the middle digits 73, 74, 75, 76, 77, 81 or 82 (For example: 9NN-73-NNNN) need to be renewed even if the taxpayer has used it in the last three years. The IRS will begin sending the CP-48 Notice, You must renew your Individual Taxpayer Identification Number (ITIN) to file your U.S. tax return, in early summer to affected taxpayers. The notice explains the steps to take to renew the ITIN if it will be included on a U.S. tax return filed in 2019. Taxpayers who receive the notice after taking action to renew their ITIN do not need to take further action unless another family member is affected.
  • ITINs with middle digits of 70, 71, 72, 78, 79 or 80 have previously expired. Taxpayers with these ITINs can still renew at any time.
  • Spouses or dependents residing inside the United States should renew their ITINs. However, spouses and dependents residing outside the United States do not need to renew their ITINs unless they anticipate being claimed for a tax benefit (for example, after they move to the United States) or if they file their own tax return. That's because the deduction for personal exemptions is suspended for tax years 2018 through 2025 by the Tax Cuts and Jobs Act. Consequently, spouses or dependents outside the United States who would have been claimed for this personal exemption benefit and no other benefit do not need to renew their ITINs this year.

Family option remains available

Taxpayers with an ITIN that has middle digits 73, 74, 75, 76, 77, 81 or 82, as well as all previously expired ITINs, have the option to renew ITINs for their entire family at the same time. Those who have received a renewal letter from the IRS can choose to renew the family's ITINs together, even if family members have an ITIN with middle digits that have not been identified for expiration. Family members include the tax filer, spouse and any dependents claimed on the tax return.

How to renew an ITIN

To renew an ITIN, a taxpayer must complete a Form W-7 and submit all required documentation. Taxpayers submitting a Form W-7 to renew their ITIN are not required to attach a federal tax return. However, taxpayers must still note a reason for needing an ITIN on the Form W-7. See the Form W-7 instructions for detailed information.

There are three ways to submit the W-7 application package. Taxpayers can:

  • Mail the Form W-7, along with original identification documents or copies certified by the agency that issued them, to the IRS address listed on the Form W-7 instructions. The IRS will review the identification documents and return them within 60 days.
  • Work with Certified Acceptance Agents (CAAs) authorized by the IRS to help taxpayers apply for an ITIN. CAAs can authenticate all identification documents for primary and secondary taxpayers, verify that an ITIN application is correct before submitting it to the IRS for processing and authenticate the passports and birth certificates for dependents. This saves taxpayers from mailing original documents to the IRS.
  • In advance, call and make an appointment at a designated IRS Taxpayer Assistance Center to have each applicant's identity authenticated in person instead of mailing original identification documents to the IRS. Applicants should bring a completed Form W-7 along with all required identification documents. See the TAC ITIN authentication page for more details.

Avoid common errors now and prevent delays next year

Federal tax returns that are submitted in 2019 with an expired ITIN will be processed. However, certain tax credits and any exemptions will be disallowed. Taxpayers will receive a notice in the mail advising them of the change to their tax return and their need to renew their ITIN. Once the ITIN is renewed, applicable credits and exemptions will be restored and any refunds will be issued.

Additionally, several common errors can slow down and hold some ITIN renewal applications. These mistakes generally center on missing information or insufficient supporting documentation, such as name changes. The IRS urges any applicant to check over their form carefully before sending it to the IRS.

As a reminder, the IRS no longer accepts passports that do not have a date of entry into the U.S. as a stand-alone identification document for dependents from a country other than Canada or Mexico, or dependents of U.S. military personnel overseas. The dependent's passport must have a date of entry stamp, otherwise the following additional documents to prove U.S. residency are required:

  • U.S. medical records for dependents under age 6,
  • U.S. school records for dependents under age 18, and
  • U.S. school records (if a student), rental statements, bank statements or utility bills listing the applicant's name and U.S. address, if over age 18.

TAX SEASON WIL BEGIN!!!!!!!!

by CDoris Rodriguez on 12/12/16

The Internal Revenue Service said Friday that next tax season will begin on Monday,
Jan. 23, 2017, while warning some taxpayers to expect longer waits for their tax
 refunds. The tax day deadline will be April 18.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

The IRS said it would start accepting electronic tax returns on January 23 and it
anticipates more than 153 million individual tax returns to be filed next year.
The IRS believes more than four out of five tax returns will be prepared electronically
using tax preparation software, as was the case last year.
However, even with the January 23 start date, the IRS also pointed out that many
 software companies and tax professionals will begin accepting tax returns before
that date and then they'll submit the returns when the IRS's systems open. The IRS
will also start processing paper tax returns on January 23. The IRS noted there
is no advantage to filing tax returns on paper in early January instead of waiting
until January 23 for the IRS to begin accepting e-filed returns.
The IRS also reminded taxpayers that a new law will require the agency to hold back
tax refunds claiming the Earned Income Tax Credit and the Additional Child Tax Credit
until February 15.
The IRS wishes taxpayers to be aware it will take several days
for these tax refunds to be released and processed through financial institutions.
Factoring in weekends and the President's Day holiday, the IRS is warning many affected
taxpayers may not have actual access to their tax refunds until the week of February
27.
"For this tax season, it's more important than ever for taxpayers to plan ahead,"
IRS Commissioner John Koskinen said in a statement. "People should make sure they
have their year-end tax statements in hand, and we encourage people to file as they
normally would, including those claiming the credits affected by the refund delay.
Even with these significant changes, IRS employees and the entire tax community
will be working hard to make this a smooth filing season for taxpayers."

The Internal Revenue Service said Friday that next tax season will begin on Monday,
Jan. 23, 2017, while warning some taxpayers to expect longer waits for their tax
 refunds. The tax day deadline will be April 18.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

The IRS said it would start accepting electronic tax returns on January 23 and it
anticipates more than 153 million individual tax returns to be filed next year.
The IRS believes more than four out of five tax returns will be prepared electronically
using tax preparation software, as was the case last year.
However, even with the January 23 start date, the IRS also pointed out that many
 software companies and tax professionals will begin accepting tax returns before
that date and then they'll submit the returns when the IRS's systems open. The IRS
will also start processing paper tax returns on January 23. The IRS noted there
is no advantage to filing tax returns on paper in early January instead of waiting
until January 23 for the IRS to begin accepting e-filed returns.
The IRS also reminded taxpayers that a new law will require the agency to hold back
tax refunds claiming the Earned Income Tax Credit and the Additional Child Tax Credit
until February 15.
The IRS wishes taxpayers to be aware it will take several days
for these tax refunds to be released and processed through financial institutions.
Factoring in weekends and the President's Day holiday, the IRS is warning many affected
taxpayers may not have actual access to their tax refunds until the week of February
27.
"For this tax season, it's more important than ever for taxpayers to plan ahead,"
IRS Commissioner John Koskinen said in a statement. "People should make sure they
have their year-end tax statements in hand, and we encourage people to file as they
normally would, including those claiming the credits affected by the refund delay.
Even with these significant changes, IRS employees and the entire tax community
will be working hard to make this a smooth filing season for taxpayers."

IRS Works to Help Taxpayers Affected by ITIN Changes

by CDoris Rodriguez on 08/19/16

Renewals Begin in October

 IR-2016-100, Aug. 4, WASHINGTON — The Internal Revenue Service today announced important changes to help taxpayers comply with revisions to the Individual Taxpayer Identification Number (ITIN) program made under a new law. The changes require some taxpayers to renew their ITINs beginning in October.

Who Has to Renew an ITIN

The IRS emphasizes that no action is needed by ITIN holders if they don’t need to file a tax return next year. There are two key groups of ITIN holders who may need to renew an ITIN so it will be in effect for returns filed in 2017:

  • Unused ITINs. ITINs not used on a federal income tax return in the last three years (covering 2013, 2014, or 2015) will no longer be valid to use on a tax return as of Jan. 1, 2017. ITIN holders in this group who need to file a tax return next year will need to renew their ITINs. The renewal period begins Oct. 1, 2016.

  • Expiring ITINs. ITINs issued before 2013 will begin expiring this year, and taxpayers will need to renew them on a rolling basis. The first ITINs that will expire under this schedule are those with middle digits of 78 and 79 (Example: 9XX-78-XXXX). The renewal period for these ITINs begins Oct. 1, 2016. The IRS will mail letters to this group of taxpayers starting in August to inform them of the need to renew their ITINs if they need to file a tax return and explain steps they need to take. The schedule for expiration and renewal of ITINs that do not have middle digits of 78 and 79 will be announced at a future date.

    How to Renew an ITIN

    Only ITIN holders who need to file a tax return need to renew their ITINs. Others do not need to take any action.

    Starting Oct. 1, 2016, ITIN holders can begin renewing ITINs that are no longer in effect because of three years of nonuse or that have a middle digit of 78 or 79.  To renew an ITIN, taxpayers must complete a Form W-7, Application for IRS Individual Taxpayer Identification Number, follow the instructions and include all information and documentation required. To reduce burden on taxpayers, the IRS will not require individuals renewing an ITIN to attach a tax return when submitting their Form W-7. Taxpayers are reminded to use the newest version of the Form W-7 available at the time of renewal which will be posted in September (Use version “Rev. 9-2016”).

    There are three methods taxpayers can use to submit their W-7 application package to renew their ITIN. They can:

  • Mail their Form W-7 — along with the original identification documents or certified copies by the agency that issued them — to the IRS address listed on the form (identification documents will be returned within 60 days),

  • Use one of the many IRS authorized Certified Acceptance Agents or Acceptance Agents around the country, or  

  • In advance, call and make an appointment at an IRS Taxpayer Assistance Center in lieu of mailing original identification documents to the IRS.

IRS Works to Help Taxpayers Affected by ITIN Changes

by CDoris Rodriguez on 08/19/16

Renewals Begin in October

 IR-2016-100, Aug. 4, WASHINGTON — The Internal Revenue Service today announced important changes to help taxpayers comply with revisions to the Individual Taxpayer Identification Number (ITIN) program made under a new law. The changes require some taxpayers to renew their ITINs beginning in October.

Who Has to Renew an ITIN

The IRS emphasizes that no action is needed by ITIN holders if they don’t need to file a tax return next year. There are two key groups of ITIN holders who may need to renew an ITIN so it will be in effect for returns filed in 2017:

  • Unused ITINs. ITINs not used on a federal income tax return in the last three years (covering 2013, 2014, or 2015) will no longer be valid to use on a tax return as of Jan. 1, 2017. ITIN holders in this group who need to file a tax return next year will need to renew their ITINs. The renewal period begins Oct. 1, 2016.

  • Expiring ITINs. ITINs issued before 2013 will begin expiring this year, and taxpayers will need to renew them on a rolling basis. The first ITINs that will expire under this schedule are those with middle digits of 78 and 79 (Example: 9XX-78-XXXX). The renewal period for these ITINs begins Oct. 1, 2016. The IRS will mail letters to this group of taxpayers starting in August to inform them of the need to renew their ITINs if they need to file a tax return and explain steps they need to take. The schedule for expiration and renewal of ITINs that do not have middle digits of 78 and 79 will be announced at a future date.

    How to Renew an ITIN

    Only ITIN holders who need to file a tax return need to renew their ITINs. Others do not need to take any action.

    Starting Oct. 1, 2016, ITIN holders can begin renewing ITINs that are no longer in effect because of three years of nonuse or that have a middle digit of 78 or 79.  To renew an ITIN, taxpayers must complete a Form W-7, Application for IRS Individual Taxpayer Identification Number, follow the instructions and include all information and documentation required. To reduce burden on taxpayers, the IRS will not require individuals renewing an ITIN to attach a tax return when submitting their Form W-7. Taxpayers are reminded to use the newest version of the Form W-7 available at the time of renewal which will be posted in September (Use version “Rev. 9-2016”).

    There are three methods taxpayers can use to submit their W-7 application package to renew their ITIN. They can:

  • Mail their Form W-7 — along with the original identification documents or certified copies by the agency that issued them — to the IRS address listed on the form (identification documents will be returned within 60 days),

  • Use one of the many IRS authorized Certified Acceptance Agents or Acceptance Agents around the country, or  

  • In advance, call and make an appointment at an IRS Taxpayer Assistance Center in lieu of mailing original identification documents to the IRS.

NEW RULES IRS 2016

by CDoris Rodriguez on 01/29/16

NEW RULES IRS 2016

FILING END  4/18

PIN(LETTER- 2014   ERROR)

REFUND 21 DAYS

TWO YEARS APROVED  2015-2016

MORTGAGE DEBT

QUALIFIED TUITION

RESIDENTIAL ENERGY

PERMANENT

     AMERICAN OPORTUNITIES

     SALES TAX

     CHILD TAX CARE

      EIC(DUE DILIGENCE)

     TEACHER $250(ELEMENTARY AND SECUNDARY)

      PARKING   $20

ITIN   5 YEARS

ONE ROLLOVER (365) DIAS

INSURANCE

 PENALTIES   325 O 2%     PUEDE APLICAR EXEMPTION

      1095 A (OBAMA)

      1095 B (insurance company)

INCREASE CREDITS

   STANDARD 

     SINGLE   6300

     MARRIED    12600

    HEO    9250

EXEMPT FOR EACH     4000

CHANGES DATE

1065 3/15(BEFORE 4/15)

SCORP 3/15

CCORP   CLOSET  YEAR 4/15

IF CLOSET NOT YEAR AFTER 3 MONTHS  

FISCAL   4 MONTHS AFTER

W-2 AND 1099  AGENCY    2/28   ELECT 3/31