MENENDEZ, COLLEAGUES URGE IRS TO EXTEND FILING DEADLINE FOR ITIN FILERS AFFECTED BY PROCESSING DELAYS

Press Release

U.S. Senator Bob Menendez (D-N.J.), a senior member of the Senate Finance Committee that oversees the Internal Revenue Service (IRS), today led a group of Senate colleagues in calling on IRS Commissioner Charles Rettig to extend the filing deadline for filers with individual taxpayer identification numbers (ITIN) who have been impacted by massive processing delays at the agency. Because of these operational challenges, many eligible ITIN filers have been unable to file for the enhanced child tax credit (CTC).

"We are concerned to learn that there may be numerous families that had hoped to file for and receive the enhanced child tax credit, but were unable to do so because of Individual Taxpayer Identification Number processing backlogs," wrote the senators to Commissioner Rettig. "In order to remedy this situation, we ask that you allow families who applied for an ITIN or ITIN renewal prior to April 15, 2022 to file for and receive the advanced CTC, if they file a return before or on October 15, 2022."

Given that existing law requires that an ITIN has to be issued on or before the due date of the tax return in order to file for the CTC, many families did not receive their ITIN prior to April 15, 2022 despite applying on time -- putting them at a disadvantage for accessing the CTC many of them need to make ends meet and cover basic necessities in their household. As reported by TIGTA and the IRS' own website, compared to before the pandemic, ITIN application processing times now average three to four months and renewal times doubled to 41 days.

"As you know, the expanded CTC was a historic provision passed in the American Rescue Plan. Researchers estimate that the first enhanced CTC payment--made last July--kept approximately 3 million children out of poverty and reduced the monthly child poverty rate from 15.8 percent to 11.9 percent. After such a historic investment in families, limiting the access of certain families due to unprecedented processing delays would be an unfortunate oversight," concluded the senators.

Sen. Menendez has long sounded the alarm about the IRS's customer service performance and the agency's massive processing backlogs. In March, Sen. Menendez led more than 100 Senate and House colleagues in a bicameral, bipartisan effort to press Commissioner Rettig on the IRS's lack of a comprehensive plan to remedy the numerous problems affecting taxpayers. In February, Sen. Menendez and Rep. Spanberger led a bicameral effort with 45 colleagues urging the IRS to take immediate actions to reduce its massive backlog and improve its customer service during the 2022 tax filing season. Shortly after sending out the letter, the IRS announced it would be putting together a second surge team to help address the massive backlogs and continue to improve customer service. Around this time, the Senator led another letter urging the IRS to halt its long-standing plan to close the IRS's Austin Tax Processing Center as the agency faced growing delays in handling unprocessed tax returns and ITIN applications.

In late January, Sen. Menendez led more than 200 colleagues in a bipartisan and bicameral letter calling on the IRS to provide penalty relief for taxpayers -- spurring the agency to temporarily halt some, but not all of the penalty notifications. The Senator also urged IRS Commissioner Rettig last year to keep phone lines open while addressing the unprecedented backlog of unprocessed returns and to take concrete steps that will allow them to address their operational challenges.

Joining Sen. Menendez in signing the letter are Sens. Catherine Cortez Masto (D-Nev.), Ben Ray Luján (D-N.M.), Alex Padilla (D-Calif.), Bernie Sanders (I-Vt.), Chris Van Hollen (D-Md.), and Elizabeth Warren (D-Mass.).

Dear Secretary Yellen and Commissioner Rettig,

We are concerned to learn that there may be numerous families that had hoped to file for and receive the enhanced child tax credit (CTC), but were unable to do so because of Individual Taxpayer Identification Number (ITIN) processing backlogs. Given that the Protecting Americans from Tax Hikes (PATH) Act required that an ITIN had to be issued on or before the due date of the return in order to file for the CTC, many families may not have received their ITIN prior to April 15, 2022--despite applying in a timely fashion. In order to remedy this situation, we ask that you allow families who applied for an ITIN or ITIN renewal prior to April 15, 2022 to file for and receive the advanced CTC, if they file a return before or on October 15, 2022.

According to the Treasury Inspector General of Tax Administration (TIGTA), prior to the COVID-19 pandemic, typical processing times for ITIN applications ranged from seven weeks during non-peak times and 11 weeks during tax time. But, as reported by TIGTA and the IRS' own website, processing times have increased--with ITIN application processing averaging a three to four months and renewal times doubling to 41 days.

As you know, the expanded CTC was a historic provision passed in the American Rescue Plan. Researchers estimate that the first enhanced CTC payment--made last July--kept approximately 3 million children out of poverty and reduced the monthly child poverty rate from 15.8 percent to 11.9 percent. After such a historic investment in families, limiting the access of certain families due to unprecedented processing delays would be an unfortunate oversight.

Thank you for your attention to this matter. We look forward to your response.

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