Have an Individual Taxpayer ID Number? There Are Some Changes You Need to Know About

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Photo: 401kcalculator.org

At the end of last year, Congress passed a $680 billion tax package that made a number of tax credits permanent, including 2009 improvements to the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC), and extended others for varying periods of time.

The legislation also created new requirements for immigrants who file their taxes in April 2017 with an Individual Taxpayer Identification Number (ITIN) for income earned in 2016 and beyond.

As explained in a recent webinar (slide deck below), ITINs issued after December 31, 2012 will remain in effect unless a taxpayer does not file taxes for three consecutive years. In this case, the taxpayer will need to revalidate their number. Taxpayers with older ITINs will also need to revalidate based on a schedule specified in the law.

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Now, more than ever, it is critical that immigrants understand these requirements and their obligations. The extent to which the Internal Revenue Service plans to notify taxpayers of the revalidation process and schedule is not known. ITINs not only allow immigrants to pay taxes but are needed in many instances to open bank accounts, obtain driver’s licenses, and tax documents can be used to establish proof of residency. For these reasons and many more, NCLR asks its Affiliate Network and partners beyond to let friends, family, and clients know about the new revalidation timeline and process.

ITINs issued before January 1, 2013 will remain in effect until whichever comes first:

  • A taxpayer does not file for three consecutive years
  • ITINs issued before January 1, 2008 must revalidate by January 1, 2017
  • ITINs issued in 2008 must revalidate by January 1, 2018
  • ITINs issued in 2009 or 2010 must revalidate by January 1, 2019
  • ITINs issued in 2011 or 2012 must revalidate by January 1, 2020

To summarize: if any ITIN filer does not pay their taxes for three consecutive years, the taxpayer must revalidate their number. If taxpayers with older ITINs file each year, then they must revalidate by the date specified in the law.

The law specifies that taxpayers can apply for an ITIN in person, by mail, or at a Certified Acceptance Agent by providing original documents. The law does not specify what the process for revalidation will require. For example, it is not known if taxpayers will need to reapply for an ITIN by resubmitting all original documentation, if they will receive a new number or simply continue using their existing number, and more.

What is clear is that if a taxpayer does not understand these requirements, they could risk losing all of their CTC.

If someone with an ITIN issued before 2008 files their taxes in April 2017 without revalidating, those tax filings will be rejected. The taxpayer will need to revalidate their ITIN and refile their taxes. At this point, the individual will no longer be eligible for the CTC.

Weekly Washington Outlook — February 8, 2016

U.S. Capitol 

What to Watch This Week:

Congress:

House:

On Tuesday, the House will vote on legislation under suspension of the rules:

  • R. 3016– Veterans Employment, Education, and Healthcare Improvement Act, as amended (Sponsored by Rep. Brad Wenstrup / Veterans’ Affairs Committee)
  • R. 3106– Construction Reform Act of 2016, as amended (Sponsored by Rep. Jeff Miller / Veterans’ Affairs Committee)
  • R. 2360– Career-Ready Student Veterans Act (Sponsored by Rep. Mark Takano / Veterans’ Affairs Committee)
  • R. 3262– To provide for the conveyance of land of the Illiana Health Care System of the Department of Veterans Affairs in Danville, Illinois (Sponsored by Rep. John Shimkus / Veterans’ Affairs Committee)
  • R. 4056– To Authorize the Secretary of Veterans Affairs to convey to the Florida Department of Veterans Affairs all right, title, and interest of the United States to the property known as “The Community Living Center” at the Lake Baldwin Veterans Affairs Outpatient Clinic, Orlando, Florida, as amended (Sponsored by Rep. John Mica / Veterans’ Affairs)
  • R. 677– American Heroes COLA Act of 2015, as amended (Sponsored by Rep. Ralph Abraham / Veterans’ Affairs)
  • R. 4437– To extend the deadline for the submittal of the final report required by the Commission on Care (Sponsored by Rep.Jeff Miller / Veterans’ Affairs)
  • R. 3234– VA Medical Center Recovery Act, as amended (Sponsored by Rep. Martha Roby / Veterans’ Affairs Committee)
  • R. 2915– Female Veteran Suicide Prevention Act (Sponsored by Rep. Julia Brownley / Veterans’ Affairs Committee)
  • R. 3036– 9/11 Memorial Act (Sponsored by Rep. Tom MacArthur / Natural Resources Committee)
  • R. 890– To correct the boundaries of the John H. Chafee Coastal Barrier Resources System Unit P16 (Sponsored by Rep. Curt Clawson / Natural Resources Committee)
  • R. 3894– To amend title 10, United States Code, to require the prompt notification of State Child Protective Services by military and civilian personnel of the Department of Defense required by law to report suspected instances of child abuse and neglect (Sponsored by Rep. Tulsi Gabbard / Armed Services Committee)

On Wednesday, the House will consider the following:

  • R. 3293– Scientific Research in the National Interest Act (Subject to a Rule) (Sponsored by Rep. Lamar Smith / Science, Space, and Technology Committee)
  • R. 3442– Debt Management and Fiscal Responsibility Act of 2015 (Subject to a Rule) (Sponsored by Rep. Kenny Marchant / Ways and Means Committee)

 The balance of the week, the House will consider the following:

  • R. 2017– Common Sense Nutrition Disclosure Act of 2015 (Subject to a Rule) (Sponsored by Rep. Cathy McMorris Rodgers / Energy and Commerce Committee)

Senate:

On Monday, the Senate will consider the nomination of Rebecca Ebinger to be U.S. District Judge for the Northern District of Iowa.

On Tuesday and the balance of the week, the Senate will resume consideration of S. 2012, the Energy Policy Modernization Act, as well as additional economic sanctions for North Korea in response to the country’s latest long-range missile test.

White House:

On Monday, the president will host President Sergio Mattarella of Italy at the White House. During their meeting, the leaders will discuss shared efforts to counter ISIL and the global refugee crisis. They will also exchange views on economic developments in Europe and the Transatlantic Trade and Investment Partnership.

On Tuesday, President Obama will attend meetings at the White House.

On Wednesday, nine years after he announced his candidacy for president, the president will return to the place where his political career began by traveling to Springfield, Ill. In the evening, the president will travel to the San Jose, Calif. area.

On Thursday, President Obama will attend a DSCC event and a DNC event. Later in the day, the president will travel to the Los Angeles area to tape an appearance on the Ellen DeGeneres Show and attend DNC events.

On Friday, President Obama will travel to the Palm Springs, Calif. area. On Monday, February 15th and Tuesday, February 16th, the president will host a summit with leaders from the Association of Southeast Asian Nations at Sunnylands in Rancho Mirage, Calif. to continue important conversations about the Asia-Pacific region. Following the conclusion of the summit, President Obama will return to Washington.

Also this Week:

Budget – The president will release his final budget on Tuesday. While Office of Management and Budget Director Shaun Donovan is not scheduled to testify, a number of Administration officials will appear on Capitol Hill with their requests. Among these, IRS Commissioner John Koskinen will testify Thursday before the House Appropriations Committee’s Financial Services and General Government Subcommittee on Thursday. He will also appear before the Senate Finance Committee on Wednesday. Health and Human Services Secretary Burwell will make her budget request to the Senate Finance Committee on Thursday. In addition, Secretary Burwell will testify before the House Ways and Means Committee on Wednesday and Treasury Secretary Jacob Lew will appear before the same Committee on Thursday.

Monetary Policy – Federal Reserve Chairwoman Janet Yellen is scheduled to testify on Wednesday before the House Financial Services Committee, as well as Thursday before the Senate Banking, Housing, and Urban Affairs Committee. She will answer questions about her semiannual monetary report to Congress.

Immigration – The House Judiciary Committee will convene Thursday to hear about the EB-5 Regional Center Program. The EB-5 program enables certain immigrants to obtain green cards, provided they meet standards for commercial investment within the United States. Elsewhere, the Senate Homeland Security and Governmental Affairs Committee holds a hearing previously postponed on Wednesday on Canada’s fast-track refugee plan and security implications for the United States

Financial Services – The House Financial Services Housing and Insurance Subcommittee has a hearing scheduled Thursday focusing on the “health” of the Federal Housing Administration. Additionally, on Thursday the House Financial Services Financial Institutions and Consumer Credit will hold a hearing to discuss new potential regulations from the Consumer Financial Protection Bureau (CFPB), including those on payday loans.

Nutrition – The House will vote on legislation this week (H.R. 2017) that gives restaurants flexibility to comply with Food and Drug Administration regulations on the display of nutritional information.  The vote on this legislation comes as the House Education and Workforce Committee considers how to move forward with a child nutrition reauthorization.  The Senate has put forward a bipartisan reauthorization that is awaiting a floor vote.

This Week in Immigration Reform — Week Ending February 5

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Week Ending February 5

This week in immigration: Ready America conference this week; and the New York Times questions permissibility of United States v. Texas.

Ready America Conference brings together immigration leaders: Grassroots organizers, advocacy groups, and legal experts gathered in Arlington, Virginia this week to collaborate on immigration integration strategies at the 2nd annual Ready America conference. The discussion centered around preparing organizations to assist Deferred Action for Childhood Arrivals (DACA) recipients, as well as policies and procedures to enact should the Supreme Court uphold Deferred Action for Parents of Americans and Lawful Permanent Residents (DAPA) and expanded DACA.

New York Times questions inclusion of ‘take care’ clause in Supreme Court case:  The New York Times called into question the Take Care Clause that is at the center of the United States v. Texas case in an op-ed published this week. The Constitutional clause, which requires the president to “take care that the laws be faithfully executed,” is rarely challenged by the Supreme Court, writes author Linda Greenhouse. However, in this instance the Court added the clause to its petition response, despite the clause’s absence from either of the lower court decisions. In doing so, Court added a much more impactful Constitutional question to the statutory question already on the table. “This is a case that should have been tossed out of Federal District Court in the first instance,” Greenhouse writes. “Instead, its stakes are now heightened enormously. If the justices approach their task as judges and not as politicians, the administration will easily prevail. It is the Roberts court that now needs to take care.”

Latino Unemployment Dips to 5.9%

AirplaneMaintenanceWomanThe American economy added 151,000 news jobs in January, according to the latest report from the Bureau of Labor Statistics. While this is net positive growth in the first month of the new year, it’s almost half what was created in December 2015, which saw 292,000 jobs added. As of January 2016, nearly 25 million Latinos were employed.

The unemployment rate also saw a slim decline from 5 percent to 4.9 percent. However, the unemployment rate among Latino workers dipped considerably, falling to 5.9 percent from 6.3 percent. That continued decline continues a trend which sees the Latino community’s unemployment numbers falling closer and closer in line with that of the general population.

The food services industry continued to be a primary source of employment among Latinos, adding 47,000 jobs in January and 380,000 for all of 2015. Although Latinos make up only 16 percent of the population, they account for approximately 25 percent of food service workers. This overrepresentation highlights issues with wage stagnation felt by workers across the country. The industry’s ability to pay less than minimum wage due to tipping also raises concerns for Latinos, as well as other food service workers, who often struggle to maintain stable levels of income.

For these job gains to translate into sustained economic well-being for Latinos across the country, the United States must address its failure to maintain wages that fall in line with cost of living and the rate of inflation. As workers are unable to stretch their pay as far as they were previously, we invite economic instability and a possible return to recession. January’s job gains should not be discounted, but they should also motivate the country to acknowledge the underlying issues in the labor market.

Read the entire jobs report below or download it here.

NCLR Goes to NASA for 2016 STEM Youth Summit

With Space City as our backdrop, NCLR recently welcomed Latino students and teachers from our national Escalera network to Houston for the 2016 NCLR STEM Youth Summit, generously supported by Shell and Chevron. Young Latinos had the opportunity to immerse themselves in the science, technology, engineering, and mathematics (STEM) disciplines through a variety of hands-on activities and educational workshops. The STEM Youth Summit was not just a weekend of science exploration, but of STEM empowerment.

The goal for the NCLR Líderes team was to create a space where Latino youth could freely tap into their potential and see STEM careers as realistic, attainable goals. The team did this through exposure to Mobile Oil field exhibits, a NASA tram tour, as well as a screening of the documentary Underwater Dreams, which included remarks from Oscar Vazquez, a STEM-advocate and U.S. Army veteran who is featured in the film.

During the STEM Life Map workshop, Latino engineers shared their individual journey into STEM and offered participants a chance to learn from their experiences. Their stories shed light on some of the structural and academic barriers that continue to plague the Latino STEM pipeline, as well as the cultural ones that often go unaddressed. One speaker, Stephanie Garza, commented on the lack of support she received at home when she first mentioned wanting to become an engineer. Though her family members doubted her ability to thrive in a male-dominant field, Garza pushed on and went on to become a power solutions engineer. Her story and those of others echoed the power of strength and perseverance.

We rounded off our first night in Houston with a celebratory dinner where we welcomed Vazquez to join us. Before a crowd of more than 120 students and teachers, he recounted his remarkable story of entering—and beating the Massachusetts Institute of Technology—in a national underwater robotics competition with three of his high school friends. He also spoke at length about the tremendous hardship he faced as an undocumented student. Vazquez noted the need to broaden opportunities for all Latinos regardless of their immigration status, and urged Latino students to dream as big as he once did.