1040-X with Form W-7

Technical topics regarding tax preparation.
#1
Sam1  
Posts:
3
Joined:
1-May-2021 4:27am
Location:
USA
Filers are a couple from Canada, both with SSN's, moved to the US in 2019 and qualify as resident aliens for 2020. They have 2 young children who currently don't have SSN's or ITIN's. Since filers were due a large federal refund, they elected to first e-file without listing the children as dependents, so the refund would be received more quickly. Now they want to amend, so that can they can obtain ITIN's for children and receive the Credit for Other Dependents.

1. The instructions for Form W-7 say, "you may be able to claim the credit for other dependents (ODC) for your child and other qualifying relatives (excluding your spouse) who live in the United States if they obtain an ITIN by the due date of your U.S. federal tax return (including extensions) and meet certain other requirements. If an ITIN is applied for on or before the due date of a 2020 return (including extensions) and the IRS issues an ITIN as a result of the application, the IRS will consider the ITIN as issued on or before the due date of the return."
An extension was not filed before the original return filing. Was the Form 4868 filing necessary to take advantage of the "including extensions" deadline of 10/15? Or are the filers now stuck with the 5/17 deadline for amending?

2. The filers wanted to apply for ITIN's in 2019, but COVID affected their ability to apply on time. Do they have any recourse to amend their 2019 return? I couldn't find any, but wanted to ask in case someone else had any ideas.
 

#2
Posts:
824
Joined:
28-Apr-2014 9:53am
Location:
Eastern United States
You sure COVID affected their ability to apply in 2019?
 

#3
Sam1  
Posts:
3
Joined:
1-May-2021 4:27am
Location:
USA
Not sure if the IRS would see it that way, but they wanted to visit an IRS Taxpayer Assistance Center in Spring 2019 but couldn't find one in the region that was open.
 

#4
sjrcpa  
Posts:
6475
Joined:
23-Apr-2014 5:27pm
Location:
Maryland
Do you mean Spring 2020?
 

#5
Sam1  
Posts:
3
Joined:
1-May-2021 4:27am
Location:
USA
Yes, for #2 I meant Spring 2020, and the 2019 return.
For #1 I'm talking about the 2020 return.
 

#6
Posts:
716
Joined:
15-Jun-2019 8:24am
Location:
Virginia
For #1, since you were before the normal filing deadline, it is not necessary to file an extension. You do not need to get the ITIN before the deadline, but submit the application.

For #2, if they did not actually file the ITIN application it is hard to argue by intention or difficulty.
Please consider visiting this post where my question at the end has not been answered yet:
viewtopic.php?f=8&t=12065, thanks!
 


Return to Taxation



Who is online

Users browsing this forum: Anderly, CaptCook, dellpaul, golfinz, Google [Bot], Google Adsense [Bot], JAH, JoJoCPA, KoiCPA, lckent, missingdonut, rkrcpa, SALYstrikesagain, TAXMASTER, taxp2345 and 201 guests