Tax Identification Number (TIN)

What is a Tax Identification Number?

A Tax Identification Number (TIN) is a nine-digit tracking number assigned and used to recognize a taxpayer.
On the off chance that you receive an income, or have any reportable or generally taxable activity (on account of an entity or business), the government anticipates that you should pay taxes on it. To do as such, the IRS expects that you first give a Tax Identification Number.
A Social Security number is one form of TIN and is utilized by most taxpayers while filing their federal and state taxes.
A TIN is likewise required for non-tax-related purposes, for example, opening a bank account, applying for a loan, going after a position, buying or renting property and claiming benefits from the government.

Different types of Tax Identification Numbers

The most common type of Tax Identification Number is the Social Security number (SSN) issued by the Social Security Administration. A Social Security number is assigned to U.S. citizens, permanent residents and some nonimmigrant workers. Parents must apply for a Social Security number for their children before they can claim them as dependents.
A Social Security number is mandatory for individuals who need to utilize government services, claim benefits, look for employment or file taxes. Applying for a Social Security number (or some other TIN besides) is free.

Employer Identification Number

The Employer Identification Number (EIN) is the TIN issued to corporations, nonprofit organizations, estates, trusts and whatever other business that are required to pay taxes. This number is utilized while reporting annual income for taxation.
The IRS offers a rundown of yes or no inquiries to assist you with deciding if you want an EIN.

Individual Taxpayer Identification Number

If a nonresident or resident alien (or their spouse or dependent) is ineligible for a Social Security number, they are issued a nine-digit Individual Taxpayer Identification Number (ITIN). This is like a normal nine-digit TIN, yet to get this, the individual requirements to submit Form W-7 alongside documents demonstrating their resident status.

Adoption Tax Identification Number

On account of domestic adoption of children, assuming that the new parents are unable to acquire the child's Social Security Number for tax purposes, they can apply for an Adoption Tax Identification Number (ATIN). Certain conditions must be met, for example, the adoption must be pending and the child ought to be a U.S. citizen or permanent resident.

Preparer Tax Identification Number

Issued to tax preparers, a PTIN, or Preparer Tax Identification Number, must be remembered for all returns completed by a paid tax professional.

Instructions to get a Tax Identification Number

The IRS offers information on the best way to apply for various Tax Identification Numbers.

Social Security number: Complete Form SS-5, Application for a Social Security Card PDF, and submit proof of your identity, age, and U.S. citizenship or lawful alien status, the IRS says.
Employer Identification Number: There are a number of ways of applying for an EIN, including online, fax, mail and telephone.
Individual Taxpayer Identification Number: Complete IRS Form W-7, IRS Application for Individual Taxpayer Identification Number. You must submit documentation of your nonresident or resident alien with the Form W-7. You can mail the material, take it to an IRS stroll in office or submit it through an Acceptance Agent authorized by the IRS.
Adoption Tax Identification Number: Complete Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions.
Preparer Tax Identification Number: Tax preparers can apply for a PTIN through the IRS join system. You can likewise complete Form W-12, IRS Paid Preparer Tax Identification Number Application. Nonetheless, the IRS notes that the paper application requires four to about a month and a half to process.

Features

There are various types of tax identification numbers, for example, the employer identification number, individual tax identification number, and adoption tax identification number.
TINs are additionally required while applying for credit and employment.
Tax identification numbers are nine-digit tracking numbers utilized by the IRS adhering to tax laws.
The IRS issues all U.S. tax I.D. numbers with the exception of social security numbers, which are issued by the Social Security Administration.
Tax filers must incorporate their tax identification number on tax-related documents and while claiming benefits.

FAQ

How Might I Get a TIN?

You can get a tax identification number by applying straightforwardly to the right agency. For example, you can get a Social Security number through the Social Security Administration. In the event that you really want an Individual Taxpayer Identification number or one for a business, you might have the option to get one straightforwardly from the Internal Revenue Service.

A Social Security number is an illustration of a TIN. It permits you to look for employment in the United States, to acquire credit with banks and different lenders, and you can file your annual tax returns with the IRS utilizing your SSN.

Is a TIN the Same as a Tax I.D.?

A TIN is equivalent to a tax I.D. as it represents tax identification number or taxpayer-identification number.

How Do I Know If I Need a TIN?

You really want a TIN on the off chance that you are authorized to work in the United States or on the other hand in the event that you plan to file taxes with the IRS. You'll likewise require a TIN to exploit benefits or services offered by the government. In the event that you run a business or other organization, you'll likewise require a TIN to run your everyday operations and to report your taxes.

How Might I Find My TIN Online?

The agency that issues your TIN gives you an official document with your unique identifier. Since it is a sensitive snippet of information, you can't go online to recover it. On the off chance that you can't recall or lose your documents, you ought to contact the responsible agency, like the SSA, to get your TIN once more.