Money Talk: IRS notes upcoming changes to individual taxpayer identification numbers

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IRS NOTES UPCOMING CHANGES TO INDIVIDUAL TAXPAYER IDENTIFICATION NUMBERS
The Internal Revenue Service recently announced changes to help taxpayers comply with revisions to the Individual Taxpayer Identification Number (ITIN) program made under a new law. The changes require some taxpayers to renew their ITINs beginning in October.

The new law will mean ITINs that have not been used on a federal tax return at least once in the last three years will no longer be valid for use on a tax return unless renewed by the taxpayer. In addition, ITINs issued prior to 2013 that have been used on a federal tax return in the last three years will need to be renewed starting this fall, and the IRS is putting in place a rolling renewal schedule to assist taxpayers. If taxpayers have an expired ITIN and don’t renew before filing a tax return next year, they could face a refund delay and may be ineligible for certain tax credits, such as the Child Tax Credit and the American Opportunity Tax Credit, until the ITIN is renewed.

STUDY SAYS LITTLE ROCK RANKED THIRD AMONG RENTERS WHO QUALIFY TO BUY A HOME
Little Rock is the third most affordable metropolitan area for renters who earn enough income to qualify to buy a home, according to new research by the National Association of Realtors (NAR).

The national real estate group reviewed employment growth, household income and qualifying income levels in nearly 100 of the largest metropolitan statistical areas across the country to determine which areas with employment gains above the recent national average also have the largest share of renters who can currently afford to buy a home. Of the top 10 metro areas with the highest share of renters who earn enough to buy, nine were either in the South or Midwest – including three cities in Ohio.

The top 10 metro areas highlighted in NAR’s study each had a share of renters who qualify to buy that was well above the national level (28%). Youngstown, Ohio ranked number one with 55.6% of renters who could afford to buy a home. The Little Rock metro area ranked number three at 45.8%. To see the NAR report, click here.

CFPB EXPANDS FORECLOSURE PROTECTIONS FOR HOMEOWNERS
The Consumer Financial Protection Bureau (CFPB) on Thursday (Aug. 4) finalized new measures to ensure that homeowners and struggling borrowers are treated fairly by mortgage servicers. The updated rule requires servicers to provide certain borrowers with foreclosure protections more than once over the life of the loan, clarifies borrower protections when the servicing of a loan is transferred, and provides important loan information to borrowers in bankruptcy.

The changes also aim to help surviving family members and others who inherit or receive property to have the same protections under the CFPB’s mortgage servicing rules as the original borrower.

Mortgage servicers are responsible for collecting payments from the mortgage borrower and forwarding those payments to the owner of the loan. They typically handle customer service, collections, loan modifications, and foreclosures. Most of the provisions of the final rule will take effect 12 months after publication in the Federal Register.