Top 7 Reasons Your TRC Renewal Was Denied & How to Fix It
Author : Accelero Corporation | Published On : 28 Feb 2026
Introduction
Renewing your Tax Residency Certificate (TRC) should be pretty straightforward. But for many individuals and businesses in the U.S., a TRC renewal becomes a serious headache. A refusal of TRC renewal leads to disruption in tax planning, loss of treaty benefits, and unnecessary tension.
If you were refused a renewal, no need to panic. The majority of denials are caused by simple, easily rectified mistakes. In this article, we list the 7 main reasons why your TRC renewal was likely rejected, along with the steps you can take to correct them, thus ensuring a smooth application next time around. The credit for this expert knowledge goes to Accelero Corporation, the team behind the USA TRC platform.
1. Incomplete or Incorrect Documentation
One major reason TRC renewals are denied is a lack of proper paperwork or filing of incorrect documents. Even a tiny mismatch, say a wrong address or a different tax year, could result in a problem.
How to fix it:
Check and re-check all the paperwork before you send it. Ensure that your tax returns, ID, and other support documents are in total agreement. So, if any changes occurred after your previous application, do a proper update instead of overlooking it.
2. Filing Taxes Late or With Errors
The strength of your tax compliance history will be a key factor for your TRC renewal. If you did your tax filings late or if they had mistakes, the IRS might disapprove your application.
How to fix it:
Keep all your federal tax returns filed timely, and if necessary, make corrections. Should you have amended a return recently, refrain from filing the renewal until it has been fully processed.
3. Residency Status Not Clearly Established
A TRC is basically a document that confirms you were a U.S. tax resident for the time stated on it. If your status as a resident is still not clear, this is mainly the case for people who travel around a lot; the renewal of your TRC can be refused.
How to fix it:
Show sufficient evidence that you are living in the U.S. through supporting documents like records of your physical presence, details of your visa, or showing long-term ties. The more straightforward your residency path, the more likely you are to succeed.
4. Applying for the Wrong Tax Year
It really happens more often than you'd think. People's tax returns for a year that does not correspond to their filing history can be rejected immediately, without any checks.
How to fix it:
Make sure the exact tax year you are eligible for is confirmed, and only apply for that period. Your TRC application and tax records should be consistent.
5. Outstanding Tax Liabilities
If there are any unpaid tax debts, penalties, or old notices, your renewal application can be put on hold or even turned down.
How to fix it:
Before filing your application, it is advisable to settle any outstanding tax problems. If you set up a payment plan, it can even improve your chances because it shows that you are proactively compliant.
6. Incorrect Application Form or Submission Method
Using an inappropriate form or submitting it incorrectly can cause you to lose track of your entire renewal process. This usually happens when applicants are guided by old information.
How to fix it:
Always stick to the latest IRS-approved form and follow the proper submission method. If you have doubts, hiring a professional can save you time and keep your applications from getting rejected.
7. Lack of Professional Review
Many applicants manage to renew their licenses on their own, thinking it's simply a reiteration of the past year. However, rules, supporting documents requirements, and one's personal tax circumstances change.
How to fix it:
It is always a good idea to have your application examined by experts in TRC services before you hand it in. A firm such as USA TRC, which is a branch of Accelero Corporation, can assist you in ensuring that your application is correct and complies with the various stages, whatever the complexity of your case.
Why Getting Your TRC Right Matters
When a renewal is denied, it means more than just extra paperwork; it can affect your ability to claim treaty benefits, reduce withholding taxes, and stay internationally tax compliant. Therefore, it is very important to know the process and avoid these mistakes.
Applying for a Tax Residency Certificate in the USA means you have to get your act together thoroughly. It is the meticulous preparation of the right documents, having accurate tax records, and even consulting with professionals that may tip the scales in your favor for the approval of the application.
Final Thoughts
It is very frustrating to get a denial on your TRC renewal, but most times it is not the end of the road. The majority of the problems are resolvable if the applicant is in possession of the correct approach and is willing to put a little extra effort. Take advantage of the learning you get from a denial, fill the gaps, and apply again with confidence.
Moreover, if you want to be without doubts, a collaboration with experienced professionals can make the whole process a lot more relaxed and a lot more successful as well.
