What happens to an ITIN that hasn't been used on a federal tax return in the last three years?

An Individual Taxpayer Identification Number (ITIN) that has not been used on a federal tax return for the last three years becomes invalid. The Internal Revenue Service (IRS) established this policy to ensure that ITINs are maintained for active users. This means that if a taxpayer has not filed using their ITIN in the specified timeframe, the IRS will automatically invalidate that number.

This requirement promotes the efficient use of the ITIN system. Taxpayers who find themselves in a situation where their ITIN has expired or become invalid must go through the renewal process if they need to submit a tax return. Therefore, understanding the status of an ITIN is crucial for compliance with IRS regulations.