I have filed by Tax return for 2019 and applied ITIN for my spouse using w7 form at a Tax assistance center. It is done on feb 27, 2020. Around April 27, my spouse is eligible to SSN and applied for SSN and was issued a SSN. My tax return it not processed yet, as it is a Paper filing.
What should I do now?
Should I report the new SSN of my spouse to IRS before the ITIN is issued? ( Will they stop issuing ITIN and use SSN for processing in this scenario ?)
Wait for the ITIN to be issued and then report the SSN?
Wait for both ITIN issuance and Tax return processing to be complete and then report the SSN?
I could not find answers for this scenario anywhere online and the IRS telephonic lines are not accepting calls for live assistance and TAC's are closed till further notice.
Thanks for the help!!
You could try submitting your tax return with her SSN now - if her SSN is in the database you may even be able to e-file. If you cannot e-file you can still mail the return in with the SSN to your usual processing location.
When the ITIN office is open, you can ask them to withdraw the application.
A second identical tax return will likely be ignored by the IRS so it won't have any adverse affect for you other than the extra work for you to prepare the second return.
Filing with the SSN could have some benefits for you this year however, particularly in regard to the Economic Impact Payments that are being processed if your income is within the range that is eligible, as tax returns with ITINs disqualify the taxpayer from receiving any payment at all.
Yes, it is okay. The only issue would be as you described, one could be sent back/rejected. Since all of the other information will be the same it shouldn't cause any real issues.
I just called them now and they will send a letter within 30 days about merging the SSN and ITIN. The person I talked to on the phone didn't seem to think the past returns would be updated to replace the ITIN with the SSN, however.
Past returns will not be updated, only the current year return.