Tax Identification Number (TIN)

What is a TIN?

A Tax Identification Number (TIN) is a general term that describes any ID number the Internal Revenue Service (IRS) uses to administer tax laws. A TIN number is required when filing tax returns, withholding certificates for treaty benefits, and other tax-related documents.

Taxpayer Identification Numbers used by the IRS include:

• Social Security Number (SSN):  This unique ID is assigned to US citizens and other residents.
• Employer Identification Number (EIN):  An EIN is used for business entities, estates, trusts, and more.
• Individual Taxpayer Identification Number (ITIN):  This ID is for individuals who are ineligible for an SSN.
• Adoption Taxpayer Identification Number (ATIN):  This temporary ID number is issued by the IRS to individuals who are in the process of legal adoption.
• Preparer Taxpayer Identification Number (PTIN):  A paid tax preparer must use a valid PTIN on all prepared returns.

What is the purpose of a TIN?

As a business owner, you’re required to have a TIN of your own and obtain TINs from other people for two main reasons:

Employment

You may ask for SSNs (Social Security Numbers) during the hiring process. SSNs are used to conduct background checks and ensure job candidates are authorized to work in the US. Once a candidate is officially hired, you will need the new employee’s SSN to complete IRS forms W-2 and W-4.

Taxation

Also known as a Federal Employer Identification Number (FEIN), an EIN is used to identify your business. Employers must use their EIN to report company income and taxes.

If you’re a foreign entity, such as a foreign corporation, an EIN is required to claim a withholding tax treaty exemption.

A business that needs an EIN at the federal level may also need one at the state level (State EIN).

How can I get a TIN?

The steps for obtaining a TIN depend on the type of ID required.The processing time for a TIN may depend on how you submit your paperwork.

Here are some of the ways to get a TIN:

• SSN:  Apply for a Social Security card by filling out Form SS-5 and submitting evidence of your identity, age, and US citizenship or immigration status.
• EIN:  Apply for an EIN by filling out Form SS-4 online, or submitting it by telephone, fax, or mail.
• ITIN:  Complete Form W-7 to receive an ITIN. Documentation of substantiating resident status and true identity must be submitted to the IRS or an authorized Certifying Acceptance Agent (e.g. college, financial institution, government agency).
• ATIN:  File Form W-7A for children who are US citizens or residents. Other children may require an ITIN.
• PTIN:  If you don’t have a PTIN, use the new IRS sign-up system to get one. PTINs received before 2010 need to be renewed or a new one applied for.

How to find a lost TIN

To find a lost TIN, first check your records. TINs appear on tax forms and other official documents.

You can look up your lost or misplaced EIN by:

• Finding a previously filed tax return
• Locating the IRS confirmation of your application for an EIN
• Calling your bank or agency.

What is the difference between an EIN, ITIN, SSN, and a TIN?

Employers deal with many types of taxpayer ID numbers: their own and their employees’. The simplest way to remember the difference is that Tax Identification Number (TIN) is just a broader term that encompasses other types of IDs.

Is a TIN the same as an EIN?

Not exactly. An Employer Identification Number is a  type  of Tax Identification Number. An EIN is used by employers to open a business bank account, apply for a business loan, get business licenses and permits, and report or pay federal payroll taxes.

Your business needs an EIN if you:

• Have employees
• Operate your business as a corporation or partnership
• File employment, excise, alcohol, tobacco, or firearms tax returns
• Withhold taxes on income (other than wages) paid to a non-resident alien
• Have a Keogh plan (H.R. 10 plan)

You also need an EIN if you’re involved with:

• Trusts, estates, IRAs, or exempt organization business income
• Real estate mortgage investments
• Non-profit organizations
• Farmers’ cooperatives
• Plan administration

There are times when you may be required to get a new EIN. This happens when corporations turn into partnerships, when trusts change to estates, and other significant events.

Is a TIN the same as an SSN?

A Social Security number is another  type  of Tax Identification Number. It’s the most used TIN by individuals and employers who report their employees’ annual income to the IRS for their income tax returns.

Businesses also use SSNs to verify an employee’s identity. The reasons to verify include:

• To successfully process accurate annual wage report submissions
• To allow Social Security to give the proper credit to an employee’s earnings record for future Social Security retirement benefits.

Is a TIN the same as an ITIN?

An Individual Taxpayer Identification Number (ITIN) is a Tax Identification Number that’s like an SSN.

According to the IRS, ITINs are only assigned to those required to have a taxpayer ID but who are ineligible to receive an SSN. Non-resident and resident individuals working in the US may apply for an ITIN for themselves, as well as their spouses and dependents.

Can you have more than one TIN?

Yes, you may be assigned more than one TIN for different reasons. This can occur due to a personal event, business change, or because a temporary tax ID has expired (e.g. an ATIN).

Examples of when you may have more than one TIN include:

New SSNs for individuals

Individuals typically only have one SSN. However, they may be able to request a new SSN because of identity theft, life endangerment, religious or cultural objections to specific numbers, and other reasons outlined by the SSA.

New EINs for businesses

Businesses may have different EINs for different divisions or subsidiaries. You may also have to apply for a new EIN if your company’s ownership or structure has changed.

Check your entity type to see when you need a new EIN.