At Just Breve we see various types of clients. Most want to finalise things quickly and are on top of their US taxes. Some however, let things lapse. Either due to frustration or general life scenarios.
What happens if I forgot to renew my ITIN or I delayed renewing my ITIN?
It depends. If you are within the filing deadline period AND actually filed the return pending renewal. In this case, you will be fine and can still claim back any overpaid US tax.
But, if you wait too long AND never filed, you may have inadvertently missed the reclaim deadline dates.
An example:
Client was supposed to new his ITIN back in 2018 and just left it. He assumed his accountant kept filing the US tax returns timely during this period. Then life and Covid got in the way and he forgot or just didn't check. Fast forward to 2022 and unfortunately, that was not the case and the accountant was waiting for confirmation of the ITIN renewal.
What did this mean?
Multiple earlier years that had not been filed at all and have now expired for purposes of obtaining a refund. I.e. the refunds were lost forever and have gone down the drain!
How did Just Breve assist?
We clarified what years were still to be filed (including the expired years) and then filed an ITIN renewal submission, so they could renew as soon as possible,
Once renewed, they could then also claim another 2 tax years (as yet unfiled), that were expiring AND where a refund was due for each year. In this case, 2019 and 2020.
What about the earlier years he missed?
Unfortunately, it is too late for those refunds to be issued (2017 and 2018), BUT we still advised to file for consistency. As he had a US entity, he is required to file each year for income reported to him. No penalties are due and he can file anytime, even though he can no longer claim back any overpaid US tax.
When do ITINs expire?
ITINs expire after 3 years of not filing a US tax return. So, if you do file and are not regular and consistent, then try and file at least once every 3 years to keep the ITIN active for filing purposes.
The IRS will advise in writing if you need an ITIN renewing, however, sometimes this does not happen and it is your responsibility to check.
Just Breve - is a US tax accounting firm, assisting non US persons with their US tax filing requirements. This includes applying for a new ITIN or renewing an existing ITIN. We are a certifying acceptance agent and have a contract with the IRS to help with Form W-7 ITIN applications.
T: 0208 1444632