Many (perhaps most) taxpayers with expired ITINs will not be able to renew them by April 18.

The IRS is projecting that the processing of ITIN renewals during filing season may take 11 weeks. Unless I am mistaken, January 31 is 11 weeks before the filing deadline.  Clearly, many taxpayers with expired ITINs will not be able renew their ITINs before the deadline, April 18. Taxpayers with expired ITIN are still required to file their return or file an extension and pay any amounts due by the filing deadline.

Please don’t turn these taxpayers away they need your help If they don’t file, they may get hit with penalties. Only one in fifty ITINs should be affected, so the impact to your site should be minimal unless you serve a lot of taxpayers with ITINs.

Below I have provided three options, I would consider for a site process when assisting these taxpayers at your tax sites during the tax season:

Suggested Process 1: Volunteers prepare the returns, site holds e-file for later transmittal and files an extension:

When you identify taxpayers with expired ITINs:

1. Prepare the returns as normal, including forms required for e-filing. Preparing the return gives an accurate calculation of any balance due for the extension.
2. Save the electronic copy of return and paper work for later e-file transmittal when the taxpayer informs you that their ITIN is renewed.
3. Taxpayers may receive notification of renewal before or after the 18^th, so you need a system to handle transmittal before and after the filing season.
4. Complete an extension using the information from the completed return.
5. Transmit the extension to the IRS.
6. Inform the taxpayer that the extension is filed and tax due must be paid by the filing deadline April 18.
7. Critical: The taxpayer must pay any amounts due by the April 18^th to avoid penalties. Make sure they understand the extension does not give them more time to pay.
8. Inform the taxpayer that they need to contact your organization when they are notified of their ITIN renewal so you can transmit their e-file and provide contact information.
9. In addition to saving the return for later e-file, provide a copy of the return that taxpayers can submit by mail if they choose to paper file or have difficulty contacting you later.
10. If Taxpayer has not already applied for renewal, prepare W-7 or provide a referral to ITIN assistance.
11. Follow-up with taxpayers who still have e-files on hold in August or September.

Suggested Process 2: Volunteers prepare the returns, files an extension, and provides a paper return to be filed by taxpayer:

Follow steps from Process 1 by preparing a return and transmitting an extension, but instead of saving e-file for transmittal later:

1. Provide the taxpayer a copy of the return so they can file a paper return once they receive the ITIN renewal notification from the IRS.
2. Make sure the taxpayer knows to pay any balance due by April 18^th and that the return should be sent later.
3. Make sure the taxpayer knows to file their return by the Oct. 15 deadline.
4. Provide the correct mailing address for their return.

I would use this process if I lacked capacity to assist taxpayers year-round.

Suggested process 3: Just e-file the returns with expired ITINs.

Sites can simply ignore that the ITIN is expired and file the return. The IRS will accept the e-file and process the return.

1. Complete return and transmit e-file ignoring that the ITIN is expired.
   1. Inform the taxpayer that the IRS will follow-up with letters about the expired ITIN.
   2. If possible, provide a referral to additional assistance with ITIN renewal.

If my site serves few taxpayers with ITINs, I would probably keep it simple and just let the taxpayer know that the IRS will contact them about the ITIN renewal and will provide any refunds due to the taxpayer at some point after the ITIN is renewed.

Please share your thoughts and suggestions.