Confusion in submitting Tax due to ITIN pending for my kid

[nshankhwar]

Hi,

My name is Neeraj Kumar. I came USA in 2019. I applied ITIN for my three year old daughter so that i can get TAX rebate. My problem is as follow

I applied ITIN for my daughter in first week of February-2020 by myself. I showed and submitted the documents for ITIN in the IRS office situated in downtown Atlanta, GA. I get letter in returns. In that letter below three points are mentioned
The ITIN office will review your application package and will send you a letter regarding the status of your application within

Option #1: 7 Weeks
Option #2: 9-11 Weeks (Peak processing period of January 15 through April 30)

The letter will advise you one of the following
1. The letter will tell you an ITIN has been assigned. You won't need to take any further action.
2. The letter will tell you your application has been suspended. You will need to provide additional information to the ITIN office Austin. You may submit another type of identity document or documents generally. This Taxpayer assistance center will not be able to assist you further and you will need to respond directly to the ITIN office in Austin.
3. The Letter will tell you your application has been rejected.... and so on

The have also provided a contact number in case of any query which is [phone number removed].

Now it's been almost 4 months but i did not receive any updates from IRS office. Neither Approval letter not rejection letter. Now the problem is this if I file tax without adding my daughter as a dependent then some tax will due on me around $300 and if I add her as a dependent then it asks for either SSN (which is not applicable in my case) or ITIN which i'm waiting for.

Can someone please suggest, what can i do as i have to submit the tax by 15-July anyhow.
I tried to call the customer care number provided but not able to connect any singe time. Can someone please tell me is there any other way to know the status if ITIN.

Thanks
Neeraj 

[SusanY1]

Unfortunately, the office that processes the ITINs was closed for a period of time from March-June.  This has resulted in significant delays in processing time.  

There isn't any other way to check on the status of the return but you can apply for an automatic extension of time to file your tax return, which will extend your due date again - this time to October 15, 2020.  Hopefully, you will have received your daughter's ITIN by then. 

Here is a link to apply for an extension: TurboTax Easy Extension.

You can also mail an extension request in using this form: Form 4868.

Note that you will not get a reply from the IRS about your extension.  It will be automatically granted. 

[nshankhwar]

Hi Susan,

Thanks for quick reply. I have a question here which is as follow

I read somewhere that if I have any due pending in tax filing Then extension will not work and you have to pay the tax by the given time which is 15-July but I'm not sure on this.  And also I heard that if I pay Taxes late  after due date then there is some penalties like $1500 extra or some amount. 

[SusanY1]

Great question!  You can still file an extension of time to file your return, but you want to mail any payment owed in by July 15th to avoid any late payment penalty.

We have two kinds of late penalties in the U.S. on tax returns.  One for filing late and a separate, lower penalty for paying late. When you file the extension of time to file pushing your date out to October 15, 2020, you will not incur the penalty for filing late.

I would suggest that you use the MAIL option for your extension and include with the extension form the payment of tax using the lower amount - the amount of the tax when your daughter is listed on the return. 

If after you add your daughter, you owe no tax or you are due a rebate (tax refund) then you do not need to mail any payment in with the extension. 

[nshankhwar]

Hi Susan,

I wanted to know few things for filing my Tax Extension

1. What if I want to pay my lump sum TAX (what is showing on Turbo Tax portal which is  Federal tax due : $6 and GA Tax due $132) after adding my daughter  as a dependent Then how can I pay this tax online and then file the extension.

2. What if I remove my daughter for this year and add next year then will I get the return next year for the same. As If i remove my daughter for this year it show me due tax as Federal Tax as $ 550 something and GA State Tax $ 250 something and that's a big amount.

Also if you can explain the below process more as i could not get more

"I would suggest that you use the MAIL option for your extension and include with the extension form the payment of tax using the lower amount - the amount of the tax when your daughter is listed on the return. "

Please suggest me. Your quick reply will appropriated most as I'm having very limited time of period.

[JotikaT2]

You can file an extension within the program itself.

1. Log back into your TurboTax account  and go to the federal section
2. Select Other Tax Situations at the top of the screen
3. Scroll down to Other Tax Forms
4. Select File an Extension
5. Proceed to answer the questions and follow the prompts to file your extension and make your tax payments

Extension requests in downloaded software

Extension requests using the online software