What to do when a client has an ITIN but used a different SSN on W2?

Forum|Forum|5 years ago
April 21, 2021
3 replies
66 views

I just had an interview with a new client and they have an ITIN. I verified this number is correct and it is also on the last years tax return as well. On the clients W2 it has a SSN listed and I asked him about it and he said oh that is my number I used for work. I am not sure what to do with this client? The company who prepared the return last year filed it as is. Do I still file the tax return? I've never come across this before.

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Best answer by Hilda Ramos

You use his Itin number on the tax return. When e-filing it should ask for the ssn used on the w-2 at the bottom. Everyone with an Itin number uses a ssn for work. You won't have any issues as long as the return has the correct Itin number.

qbteachmt

Level 15

"The company who prepared the return last year filed it as is."

As which #? You cannot work with ITIN. Once they have SSN, they no longer file or use ITIN. And then it would expire.

Read what the IRS tells you:

https://www.irs.gov/individuals/itin-expiration-faqs

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H

Hilda RamosAnswer

Level 3

You use his Itin number on the tax return. When e-filing it should ask for the ssn used on the w-2 at the bottom. Everyone with an Itin number uses a ssn for work. You won't have any issues as long as the return has the correct Itin number.

H

Hilda Ramos

Level 3

also verify that the Itin has been renewed or it is not expired 🙂

qbteachmt

Level 15

I put those links so that they can be used. These regulations changed in the past few years. For instance:

https://www.irs.gov/individuals/itin-expiration-faqs

"Q11: I have a Social Security Number (SSN) and no longer need my ITIN that will be expiring. Do I need to renew my ITIN?

A11: No, you should not renew your ITIN if you have or are eligible for an SSN. Please notify us that you have obtained an SSN and no longer need the ITIN by visiting a local IRS office or writing a letter explaining that you have now been assigned an SSN and want your tax records combined. If you write a letter, include your complete name, mailing address, and ITIN along with a copy of your social security card and a copy of the CP 565, Notice of ITIN Assignment, if available. The IRS will void the ITIN so it cannot be used by anyone in the future and associate all prior tax information filed under the ITIN with the SSN. Send your letter to: Internal Revenue Service, Austin, TX 73301-0057."

Don't yell at us; we're volunteers

sjrcpa

Level 15

Is the SSN on the W-2 the client's?

The more I know the more I don’t know.

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