Filing a 1040NR with expired ITIN for informational purposes?

Viking99 · ‎June 25, 2020

A non-resident Alien with expired ITIN received a 1099-K for personal bank-to-bank money transfers (between same owner). This was not income for him, and he had no other income except for tax exempt bank interest. He was advised to file a 1040NR to show the reported 1099-K as other income and then subtract the same amount with an explanation showing no net income.

My question pertains to filing a 1040NR (for the first time) with an expired ITIN. Would that be a problem? He needs to file in 2 weeks so there is no time to apply for a new ITIN. (Can he apply for an extension with an expired ITIN?)

Does he even need to apply for a new ITIN? The only reason for the ITIN would be to be able to explain the 1099-K on a 1040NR (There is no requirement to renew an ITIN for 1099 informational returns).

p.s. He may not even be able to renew his ITIN. His wife later tried to also obtain an ITIN to open a bank account, but was denied by the IRS because there is no Tax Treaty with their country and an ITIN is not required to open a bank account.

xmasbaby0 · ‎June 25, 2020

TurboTax cannot be used for a non-resident alien.

NON RESIDENT ALIEN

If you are a non-resident alien, your return must be filed on Form 1040NR, which cannot be prepared using TurboTax. You can use TT’s partner, sprintax:

https://www.sprintax.com/non-resident-alien-tax-1040nr-turbotax.html

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Viking99 · ‎June 28, 2020

This was not a product question (as specified in my Tag) but a Tax question. Note that a 1040NR cannot be submitted online w/o a valid ITIN. Only a paper return can be submitted.

However, after talking to some tax professionals, I was informed that it wouldn't make any difference to file a 1040 NR w/o a valid ITIN as the IRS would not process it. The taxpayer may then get a letter asking to submit an application to renew the ITIN.

However, the taxpayer cannot renew the ITIN because he is not living in the USA and he has no US derived income. Not even investment income would suffice because of a lack of a Tax treaty.

The only solutions is to wait for an IRS notice and then try to explain....

Filing a 1040NR with expired ITIN for informational purposes?

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