The IRS assigns an Individual Taxpayer Identification Number (ITIN) to citizens or non-citizens who are authorized to work in the U.S. Keep in mind that Social Security Numbers (SSN) never expire. If you have not used your ITIN on a federal tax return at least one time in the past 3 years, you must submit a renewal application. Taxpayers are advised to renew as soon as possible, or at least by the end of 2019 to avoid refund delays. If your ITIN does expire and you file a 2020 tax return, you run the risk of the IRS disallowing tax credits and exemptions. However, these credits, refunds and credits will be restored when the ITIN is renewed.
It is much easier and will be less stressful if you submit the renewal now. If you are one of the two million taxpayers whose ITIN will expire, the IRS will mail you a CP48 Notice this summer. It will explain how to renew your ITIN. This can also impact small business owners who have employees who do not renew the ITIN; it could negatively affect your ACA annual filings.
No action is required if you have an expired number, or your ITIN is not subject to expiration. If you are now eligible to receive an SSN, you do not need to take any action.