ITIN Processing Times in 2026: What to Expect, How to Plan

ITIN processing under Exception 4 (FIRPTA) currently takes 7–12 weeks at the IRS. Peak season can stretch longer. Here's what 2026 timelines actually look like and how to plan around them.

An ITIN — Individual Taxpayer Identification Number — is required for any foreign seller who wants to file Form 8288-B, claim FIRPTA withholding credit, or file Form 1040-NR. For sellers without an existing ITIN, the application is filed via Form W-7 under Exception 4 (FIRPTA).

The bottleneck is IRS processing time. Here's what 2026 looks like in practice and how to plan a closing around it.

Current 2026 timelines

The IRS publishes target processing times of 7-11 weeks for ITIN applications. Actual experience in 2026 has been:

• Off-peak (May–December): 7–9 weeks typical, some applications process faster
• Peak season (February–April): 10–14 weeks typical, some applications slip to 16+ weeks
• Documentation issues: +4–6 weeks if the IRS flags any problem with the application and requests corrections

The peak-season slowdown is driven by the same staffing constraints that affect general IRS processing during tax season — ITIN applications compete with the broader return-processing workload.

Why Exception 4 is the right path

Without Exception 4, an ITIN application requires you to attach a U.S. tax return — meaning you can't get the ITIN until you've filed a return, and you can't file a return until you have the ITIN.

Exception 4, specifically authorized for FIRPTA cases, breaks the catch-22. You apply with documentation of the U.S. real estate transaction (sales contract, closing statement, or pending Form 8288-B) instead of a tax return. The IRS issues the ITIN on the strength of the FIRPTA-related documentation alone.

This is the only viable path for foreign sellers who need their ITIN in time for closing. If your closing is even 12 weeks out, Exception 4 is realistic; the standard ITIN-with-return path can't deliver in that timeframe.

What can go wrong

Three things commonly delay ITIN applications:

1. Documentation issues with identity proof. The IRS requires either original passport documents or certified copies issued by the issuing agency. We use Certifying Acceptance Agent (CAA) certification to avoid sending original passports through the mail. Applications without proper certification get rejected and have to be refiled.

2. Mismatched name spelling. If the W-7 application has the seller's name as "Maria Lopez" but the passport shows "María Lopez" (with the accent), the IRS may flag the application. Worse: if the closing documents use one form and the W-7 uses another, the IRS may reject a later 8288-B because the names don't match.

3. Missing FIRPTA documentation. Exception 4 requires evidence that the application is connected to a real FIRPTA transaction. A signed sales contract is usually sufficient; for early-stage applications without a contract yet, we sometimes use a draft Form 8288-B as the supporting evidence.

Planning around the timeline

Three scenarios:

Closing more than 90 days out, no ITIN yet: File the W-7 immediately. ITIN typically arrives well before closing. Continue with normal Form 8288-B preparation in parallel.

Closing 60–90 days out, no ITIN yet: File the W-7 immediately and treat the closing schedule as tight. The Form 8288-B can be drafted in parallel but cannot be filed without the ITIN. If the ITIN is delayed past closing, the closing proceeds with full 15% withholding (no 8288-B) and the seller waits for the ITIN before claiming refund via Form 1040-NR.

Closing less than 60 days out, no ITIN yet: Realistically, the 8288-B path is unlikely to work. Plan for closing-day full withholding plus a Form 1040-NR refund the following year. We can still file the ITIN application — the seller will need it for the refund return — but the 8288-B option has effectively expired.

Practical takeaways

• If you don't have an ITIN and you're thinking about selling within the next year, start the application now
• Off-peak season (summer/fall) is significantly faster than peak season — if you have flexibility, time your application
• Use a Certifying Acceptance Agent rather than sending original passport documents through the mail
• Make sure your name spelling is consistent across the W-7, your passport, the sales contract, and any other FIRPTA documents
• If your closing is tight and the ITIN won't arrive in time, the engagement pivots from "Form 8288-B at closing" to "full withholding at closing, refund via 1040-NR" — both are valid; the first just preserves more cash flow

For most foreign sellers, the ITIN is the first FIRPTA-related thing to start. Earlier is better in every scenario.