January 6, 2017
As the 2017 filing season approaches we would like to remind you about some ITINs that need to be renewed and email phishing scams that are directed at tax preparers in order to take over their computer systems or to gain information in order to commit tax identity theft.
This is a reminder that ITINs (Individual Taxpayer Identification Number) with the middle digits of either 78 or 79 expired at the end of 2016. An individual who has an affected ITIN will need to renew it in order to use it on a 2016 federal income tax return that will be filed during the 2017 filing season.
If an expired ITIN is used on a 2016 return the processing of the return will be delayed until that ITIN is renewed, which could take up to 11 weeks. This also could result in the denial of any deductions or credits associated with the expired ITIN.
To renew an ITIN the latest version of Form W-7 (revision date of September 2016) should be completed and submitted to the IRS. The IRS is encouraging affected individuals to submit an application as soon as possible since the application will take seven weeks to process (eleven weeks during the peak of the filing season).
See the IRS news release of December 21 - Many ITINs Expire Jan 1; Renew Now to Avoid Refund Delays for information on how to renew and information on what steps you need to follow in order to avoid delays in processing the renewal application.
For additional information see the following:
Criminal Schemes Targeting Tax Preparers
As the 2017 filing season approaches it is important for tax preparers to be aware that tax identity thieves are now targeting tax preparers in their efforts to obtain their clients personal information and information related to the tax preparer themselves.
Here are two examples of how criminals are targeting tax preparers:
For more information on what you can do to protect yourself see the following on the IRS website:
2018 Changes to Form 8867 (Preparer Due Diligence Checklist)
November 9, 2018
2018 Depreciation Changes
October 18, 2018
2018 Tax Law Changes that are Directly Reported on Form 1040
October 3, 2018
IRS Tax Transcripts Changes
September 27, 2018
Revised 2018 Schedule A due to Tax Cuts and Jobs Act Changes to Itemized Deductions
August 29, 2018
2018 Expansion of Preparer Due Diligence Requirements
August 8, 2018