I have a client that is applying for an ITIN with his 06 tax return. He is also applying for his children. When I leave the SSN field blank it will not calculate the correct Additional Child Tax Credit Amount. Am I doing something wrong or is their a trick to getting to work correctly. Please help.Thanks
ITIN's are only issued with a completed tax return. It will not be issued with an extension to file a tax return. So this is not an alternative. The program does not address this issue because the credit is not allowed without providing a SSN or ITIN for the child or children.
What I have done over the years, is mail the return without the credit. I provide the child(children's) name(s) with no SSN or ITIN on the tax return. Once the ITIN is received, then I prepare an amended return. The IRS has always approved the amended return and reimbursed the overpayment. If monies is owed to the IRS because of not being able to claim this credit, then I request an installment agreement with the tax return. This gives the client time to receive the ITIN and then amended it with little out-of-pocket payment of taxes that eventually will not be owed to IRS after submitting the amended return.
My business has been dealing with taxpayers without SSNs or ITINs for many years. This is the procedure the IRS wants. The child is not eligible for the credit without the ITIN. Therefore, until one is issued, the taxpayer is technically not eligible to request the credit for the child.
Remember, the IRS unit that processes the W-7 is not the same that processes the tax return. Also, if the W-7 is not complete or incorrect no ITIN will be issued for the child. This unit does really verify the information on the document(s) attached to the W-7. They have been cases where this unit have lost track of the taxpayer's return for which the child's ITIN is being requested. Thus, creating a delaying in processing the W-7 and if a timely response is not submitted to them for additional documents or information they want, the application will be denied and no ITIN will be issued for the child. The tax return will be processed without an ITIN for the child. Your only remedy will then be to wait until the next year's tax return is due. They will not allow you to resubmit the W-7 application for the same tax year.
Hope this answers your question.
thank you so much. I was sending them without the credit but wanted to make sure that I was doing it the best way possible.
Hi Jeannie - regarding my other post about trying to e-File a 1040 including a spouse with an ITIN. You mentioned eFiling many returns for with ITINs. Were some of those for the taxpayer's spouse for MFJ returns?
I'm still trying different combinations of last names (spouse last name: Al-Ey***) and i figure i have 2 or 3 more different combos to try (including the middle name). Thing is, i called ProSeries and they told me i can't e-file returns where either Taxpayer or spouse has an ITIN. I got their message before seeing your response to my post. Are they wrong...again?
Thanks...the end of tx season is near (Yay!!)
what i have done with my since most of the time amended returns take to much for my clients
what i do on the ssn/ Iitn filed i put that Word DIED and i print it like that so i just use a black pen to erase it and use white out not the liquid one so thats that trick i been using for my practice. since i call proseries support and there were not able to provide me a better idea. I hope this help..
P.s and i know it will give you errors after you print all the return than you change it in the software for empty space
