IRS Works to Help Taxpayers Affected by ITIN Changes; Renewals Begin in October

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.

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The new law will mean ITINs that have not been used on a federal tax return at least once in the last three years will no longer be valid for use on a tax return unless renewed by the taxpayer. In addition, ITINs issued prior to 2013 that have been used on a federal tax return in the last three years will need to be renewed starting this fall, and the IRS is putting in place a rolling renewal schedule, described below, to assist taxpayers.

ObamaCare and Your Taxes: What You Need to Know

I received a phone call last week from the niece of a client who works as a waitress with an annual income of $18,000. Not able to afford professional tax preparation services, she had gone to the library to do her own taxes on the IRS Free File System. Really simple return. Single, no dependents, one W2. Files it electronically.  Takes five minutes to file. Then three weeks later she gets a letter from the IRS asking her to complete IRS Form 8962 Premium Tax Credit. She attempted completing the form using the complicated formulas and the tables provided in the instructions and became confused. Could I help her?

Sure! No problem! Piece of cake! Or so I thought.