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.
