Individual Taxpayer Identification Number (ITIN)

Federal law requires individuals with U.S. income to pay applicable U.S. taxes, regardless of immigration status. That includes individuals who do not have SSNs.
The ITIN is a nine-digit number beginning with 9 and a fourth digit of 7 or 8, created for use on tax returns by those taxpayers who do not currently qualify for (or have) a Social Security number.
Taxpayers must file a request to be issued an ITIN; ITINs are not automatically issued.
An ITIN will be issued to individuals who have a valid filing requirement, who file to claim a refund of taxes withheld, or if needed on the tax return of another individual (such as a parent or spouse).
Having an ITIN does NOT:

Authorize work in the U.S. or establish immigration status
Create eligibility for Social Security benefits OR the Earned Income Tax Credit or (for a dependent) the Child Tax Credit (beginning with tax year 2018)
Provide valid identification outside the tax system

More information on ITINs can be found at irs.gov/individuals/individual-taxpayer-identification-number, in Chapter 1, "Filing Information", of Pub 17, and in Pub 1915, Understanding Your IRS Individual Taxpayer Identification Number.

If the IRS letter assigning an ITIN was issued prior to January 1, 2015, that ITIN has expired and needs to be renewed. (See Pub 4012 page L-11.)

Also, any ITIN not used in the past three tax years is also considered expired and must be renewed.

If the taxpayer has such an ITIN, the IRS should have sent the taxpayer Letter 5821.

If an ITIN has expired, the taxpayer must submit a Form W-7 to renew it. This can be submitted separately or with the paper-filed tax return. Both options are discussed below.

A tax return e-filed with an expired ITIN will be accepted by the IRS; however, it will be processed without allowing any exemptions or credits claimed, and no refund will be issued. The IRS sends the taxpayer a notice explaining the delay in any refund and that the ITIN must be renewed.

Once the ITIN is renewed, any exemptions and credits will be processed, and any allowed refund issued.
If the ITIN is not renewed, the taxpayer may be subject to interest and penalties for any tax owed as a result of disallowed exemptions and credits.

Prepare the current year return using the new, valid SSN and e-file the return.
If it benefits the taxpayer, amend prior-year returns that were filed using an ITIN.

The reason stated on 1040X Page 2 should include “Previous return filed with ITIN _______” as well as a description of what else has changed.
Note: Taxpayers with newly issued SSNs or ITINs cannot retroactively claim certain credits when they file an amended return, or a return for a prior year. See Pub 4012 page M-9, “Prior Year Returns”, for details.

It generally takes 4 to 6 weeks to receive an ITIN, but 8 to 10 weeks if requested during the filing season.
Form W-7 Submitted with a Tax Return

Preparation of Form W-7, Application for IRS Individual Taxpayer Identification Number, when the form is going to be filed with the tax return (which must be paper-filed), is in-scope.
The process of completing a W-7 in TaxSlayer is described in two places in the sections above: Social Security Number (for the taxpayer), page 11; Spouse Social Security Number, page 17.
The process of printing a Form W-7 to be filed with the tax return is described in the section Paper Returns that Include a Form W-7, page 130.

Preparation of Form W-7 as a separate document, not part of a tax return, is out-of-scope. However, it is acceptable to print a blank W-7 to give to the taxpayer; the taxpayer is responsible for completing it.

A blank Form W-7, Application for IRS Individual Taxpayer Identification Number, and instructions, can be found on the IRS.gov website.

See the section above, Paper Returns that Include a Form W-7, page 130, for how to submit Form W-7.

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