Common ITIN Rejection Reasons and Fixes (2025 Guide)

If your application for a taxpayer identification number was denied, you are not alone. Thousands of ITIN applicants receive notices from the IRS each year explaining why their request could not be processed. These rejection reasons are often tied to missing documents, expired forms, or minor errors that can easily be corrected with the proper guidance.

An ITIN is a taxpayer identification number issued by the Internal Revenue Service to people who must file a federal tax return but do not qualify for a Social Security number. It helps taxpayers meet their obligations, claim certain credits, and stay in good standing with the federal tax system. However, applications are at risk of delay or denial without careful attention to the process and supporting documentation.

This guide explains the most common problems ITIN holders and new applicants face and provides practical solutions. You will learn how to respond to an IRS notice, how to submit the correct identification documents, and when to consider using an acceptance agent for assistance. With the proper steps, taxpayers can resolve errors, renew an ITIN if needed, and file their federal income tax return without unnecessary setbacks.

What is an ITIN and Who Needs One?

An Individual Taxpayer Identification Number (ITIN) is a nine-digit number issued by the IRS to people who must file a federal tax return but do not qualify for a Social Security number. It is designed to help ITIN applicants comply with tax rules, file a federal income tax return, and claim certain credits they may be eligible for. An ITIN is especially important for taxpayers who live or work in the United States but cannot obtain an SSN.

Who Needs an ITIN?

The following groups often need to apply for a taxpayer identification number (ITIN):

• Nonresident aliens who are required to file a federal income tax return because they earn U.S. income or have other filing obligations.
  
  
• Foreign students earning wages or scholarships in the United States must meet federal tax requirements, including filing returns and claiming treaty benefits.
  
  
• Dependents and spouses of U.S. citizens or permanent residents who need to be listed on a household tax return but do not qualify for a Social Security number.
  
  
• Foreign investors who receive dividends, rental income, or interest from U.S. sources must file taxes even though they live overseas.
  
  
• Individuals who must file information returns with the IRS, such as those reporting certain credits or other taxable transactions, are not eligible for an SSN.

Why an ITIN Matters

Holding an ITIN helps taxpayers stay compliant with federal tax obligations. It allows them to file a valid tax return, qualify for certain credits, and receive refunds when applicable. It also ensures that other household members, such as spouses or dependents, are documented adequately on tax forms. For many applicants, obtaining or renewing an ITIN is the only way to remain in good standing with the IRS.

Understanding ITIN Rejection Notices

When an ITIN application is rejected, the IRS sends a notice explaining the issue. The two most common notices are CP566 and CP567; understanding their differences is essential for correcting the problem.

• CP566 Notice (Suspense Notice): This notice means that the IRS needs additional information before processing the ITIN application. Common reasons include a missing federal tax return, an incomplete Form W-7, or missing supporting documentation. Applicants should review the letter carefully, gather the requested identification documents, and submit the missing details to avoid further delays.
  
  
• CP567 Notice (Rejection Notice): This notice means the application has been thoroughly rejected and cannot be processed in its current form. Typical reasons include submitting an expired ITIN, providing invalid documents, or applying for an ITIN while eligible for a Social Security number. In these cases, the applicant must correct the issue, complete a new Form W-7, and resubmit the application.

Receiving either notice does not mean the applicant cannot obtain a taxpayer identification number (ITIN). It simply signals that more steps are required before the IRS can assign or renew an ITIN.

Top 15 Common ITIN Rejection Reasons and Fixes

The IRS rejects many ITIN applications each year for avoidable reasons. Below are the most frequent issues and the steps taxpayers can take to correct them.

1. Missing or invalid federal tax return
   Many applications are rejected because the required tax return was not attached. Applicants should include a complete and signed return with Form W-7 unless they qualify for an exception.
   
   
2. Incomplete or inconsistent Form W-7
   Blank fields, inconsistent information, or errors lead to rejection. Every field should be completed; the supporting documents must match names, dates, and addresses.
   
   
3. Expired or invalid supporting documentation
   The IRS only accepts original or certified copies of valid, unexpired identification documents. Poor-quality or outdated submissions are rejected.
   
   
4. Insufficient proof of identity or foreign status
   A valid passport is the best option, but applicants can submit two other documents proving identity and foreign status together.
   
   
5. Missing proof of U.S. residency for dependents
   Dependents often need school records, medical records, or other documents that confirm residency in the United States.
   
   
6. Incomplete medical records for dependents under age six
   Records must include the child’s name, birth date, address, doctor’s name, and facility information within 12 months of the application.
   
   
7. Incomplete school records for dependents under age 24
   Records must show attendance, address, and the school’s official name within 12 months of filing.
   
   
8. Eligibility for a Social Security number
   If a person is eligible for an SSN, they cannot receive an ITIN. A denial letter from the Social Security Administration must be attached if the SSN application was denied.
   
   
9. Applying for a new ITIN when one already exists
   Taxpayers must renew an ITIN instead of applying for another. If the ITIN has expired, use the renewal box on Form W-7.
   
   
10. Missing allowable tax benefits
    Spouses and dependents must be listed on a return with a qualifying tax credit to justify the ITIN request.
    
    
11. Application submitted by an unauthorized acceptance agent
    Only certified acceptance agents and IRS-authorized representatives may submit applications.
    
    
12. Passport without a U.S. entry date for dependents
    Without an entry date, dependents must provide additional proof of residency, such as medical or school records.
    
    
13. Name changes are not documented.
    If the name on the application differs from the records, applicants must include legal documents such as a marriage certificate, court order, or divorce decree.
    
    
14. Failure to respond to IRS correspondence
    Ignoring a CP566 notice leads to rejection. Applicants must reply with the requested documents by the deadline.
    
    
15. Poor-quality documents
    Handwritten, illegible, or unofficial-looking records are often rejected. Applicants should submit clear, official documents whenever possible.

Addressing these issues promptly ensures that ITIN holders and new applicants can correct mistakes and file tax returns.

Step-by-Step ITIN Application Process

Applying for an ITIN requires careful attention to detail. The process is slightly different for first-time applicants and renewals.

First-Time Applicants

1. Determine eligibility: Confirm that you are not eligible for a Social Security number and need a taxpayer identification number (ITIN) to meet your tax obligations.
   
   
2. Complete Form W-7: Fill out every applicable field, select the correct reason code, and sign the form.
   
   
3. Prepare your federal income tax return: Attach the completed return to Form W-7 unless you meet one of the IRS exceptions.
   
   
4. Gather supporting documentation: Provide original identification documents or certified copies, and include proof of residency for dependents if required.
   
   
5. Apply: Mail Form W-7, your tax return, and documents to the IRS service center, or apply through an acceptance agent. Processing generally takes seven to eleven weeks.

ITIN Renewals

1. Check expiration status: An ITIN expires if it has not been used on a federal tax return for three years.
   
   
2. Complete the renewal application: Mark the renewal box on Form W-7 and provide your existing ITIN.
   
   
3. Submit with your current tax return: Attach all required documentation and send it to the IRS. This step ensures your federal income tax return is processed without delay.

Following these steps carefully helps applicants avoid unnecessary rejections and ensures their ITIN application status moves forward smoothly.

Practical Examples and Edge Cases

Understanding the reasons for rejection becomes easier with real-world examples. The following scenarios highlight common challenges applicants face and how they can resolve them.

• Immigrant family with dependents: A nonresident spouse filing jointly with a U.S. citizen may need an ITIN for themselves and their children. Dependents often must provide proof of U.S. residency, such as school or medical records. If these documents are incomplete, the IRS may issue a notice. Correcting the record and submitting original or certified copies prevents further rejection.
  
  
• Foreign student on an F-1 visa: A graduate student earning income as a teaching assistant may need to file a federal income tax return using Form 1040-NR. They must also submit Form W-7 with supporting documentation such as a valid passport and a U.S. visa. Missing these documents or using expired identification can result in a rejected immigration application.
  
  
• Nonresident investor: An overseas investor who earns U.S. dividends may qualify for an exception that allows them to apply without attaching a federal tax return. However, they must provide Form 1042-S and other documents that prove withholding has been used. Failure to include these records often leads to rejection.

These examples show that careful attention to eligibility, documentation, and filing requirements helps applicants avoid unnecessary problems.

Certified Acceptance Agents (CAA) and Professional Help

A certified acceptance agent is an individual or organization authorized by the IRS to assist ITIN applicants. Acceptance agents verify original identification documents, ensure that applications are complete, and help taxpayers avoid rejections.

Using a CAA can be helpful because:

• They review Form W-7 and supporting documentation before submission, reducing the chance of errors.
  
  
• They can return original identification documents immediately after verification, which saves applicants from long delivery waits.
  
  
• They are trained to identify mistakes such as using expired ITIN numbers, missing tax return attachments, or incomplete forms.
  
  
• They guide dependents and spouses and ensure household members are documented adequately on a federal tax return.

The IRS offers a program for tax professionals to become certified acceptance agents. This role requires training, adherence to compliance standards, and regular communication with the IRS. It also provides opportunities to serve a wider group of taxpayers, including those overseas.

ITIN Expiration and Renewal Rules

An ITIN does not last indefinitely. It must be renewed when it expires to remain valid for federal tax purposes.

• Expiration rules: An ITIN expires if not used on a federal tax return for three consecutive years. Many older numbers also expired as the IRS phased out pre-2013 issuances.
  
  
• Renewal process: Taxpayers must complete Form W-7, check the renewal box, and provide their existing ITIN. They must attach identification documents and, in most cases, a current federal income tax return.
  
  
• Consequences of using an expired ITIN: Filing a tax return with an expired ITIN can delay refunds, prevent credits from being applied, and trigger IRS notices.

Renewing an ITIN on time ensures taxpayers can claim certain credits, file without interruption, and comply with federal tax rules. Applicants should review expiration guidelines yearly and renew an ITIN well before tax season to avoid processing delays.

Troubleshooting Checklist

Before submitting an ITIN application, taxpayers should carefully review their paperwork. Taking a few extra minutes to check each item reduces the chance of rejection and saves weeks of processing time.

Pre-submission checklist:

• Confirm that Form W-7 is filled out in full, with no blank spaces left in applicable fields, since incomplete forms cause rejection.
  
  
• Attach a signed federal tax return unless you qualify for an IRS exception, because the absence of this return often results in processing delays.
  
  
• Include original or certified copies of identification documents that are valid and unexpired to satisfy IRS verification requirements.
  
  
• Ensure that the names, addresses, and dates match all forms and supporting documentation so the IRS can confirm the applicant’s identity without confusion.
  
  
• Provide proof of residency for dependents when required, such as medical or school records, because missing evidence of U.S. presence will trigger an investigation. Please review all supporting documents to ensure they are consistent with the information on Form W-7.

If the application is rejected:

• Please read the IRS notice carefully. It specifies the exact reasons for rejection that must be addressed before resubmission.
  
  
• Gather any missing or corrected documentation, and if necessary, complete a new Form W-7 to replace the rejected version.
  
  
• Submit the updated application by mail or through a certified acceptance agent, ensuring all documents are correctly verified before delivery.
  
  
• Keep copies of every form and letter submitted to the IRS to prove compliance if questions arise later.

Risks of Ignoring ITIN Requirements

Filing taxes without a valid ITIN or ignoring an IRS notice may create long-term consequences. Taxpayers who delay action face risks that extend beyond the current tax season.

• Tax compliance risks: Ignoring IRS instructions can result in penalties, added interest, or even enforcement measures to collect unpaid federal taxes.
  
  
• Lost benefits: Filing a federal income tax return with an expired ITIN may prevent taxpayers from claiming certain credits, reduce refund amounts, or cause processing delays.
  
  
• Immigration considerations: While an ITIN does not determine immigration status, consistent tax compliance can be substantial when applying for a green card, citizenship, or other legal benefits.

Next Steps and Call to Action

Taxpayers should respond quickly to an ITIN rejection to avoid additional complications. Acting within the timeframe set out in the IRS notice gives applicants the best chance of resolving their case smoothly.

• Individuals should start by reviewing their IRS letter, identifying the missing information, and collecting the correct documentation needed for resubmission.
  
  
• If the rejection was due to an expired ITIN, applicants should mark the renewal box on Form W-7 and provide updated identification documents to complete the process.
  
  
• Working with a certified acceptance agent can provide added reassurance, since agents are trained to review applications, verify documents, and reduce the risk of repeat rejection.
  
  
• Tax professionals may also consider becoming acceptance agents, allowing them to expand their services and help other community members with ITIN applications.

By following these steps, both new applicants and existing ITIN holders can keep their taxpayer identification number valid, file accurate returns, and avoid unnecessary processing delays.

Frequently Asked Questions

Why does the IRS reject some ITIN applications?

The IRS may reject an ITIN application if Form W-7 is incomplete, the federal tax return is missing, or the original identification documents are invalid. Other issues include expired ITIN numbers, a lack of supporting documentation, or applying while eligible for a Social Security number. Taxpayers can avoid these ITIN rejection reasons by providing correct documents, completing every field, and attaching all required forms before mailing the application.

How do I complete an ITIN renewal?

When renewing an expired ITIN, applicants must fill out Form W-7 and check the box in the renewal section. They should attach original or certified copies of valid identification documents and a current federal income tax return unless they qualify for an exception. Submitting the renewal by mail or through an acceptance agent ensures the IRS processes the tax return correctly and allows taxpayers to claim certain credits and refunds without delay.

What documents must ITIN applicants provide?

An applicant must provide original or certified copies of identification documents that prove identity and foreign status. A valid passport is preferred, but other documents, such as a child's birth certificate, national ID, or school records for dependents, may also be used. The IRS requires all documentation consistent with information on Form W-7 to properly establish the taxpayer identification number (ITIN). 

Can an acceptance agent file an ITIN application for me?

The IRS authorizes a certified acceptance agent to review an ITIN application, verify original identification documents, and submit them on behalf of taxpayers. This process can save time by avoiding errors like submitting expired ITIN details or missing a federal tax return. Acceptance agents return documents quickly after verification, which benefits spouses, dependents, and other household members who must file taxes with correct information.

What if I use an expired ITIN on my federal tax return?

If a taxpayer files a federal income tax return with an expired ITIN, the IRS may delay refunds and deny certain credits until the renewal is complete. To correct this, taxpayers must submit Form W-7 with the renewal box checked, provide supporting documentation, and mail the application to the IRS. Renewing on time helps ITIN holders maintain valid taxpayer identification numbers and prevents delays in receiving refunds or credits.