TaxPayer Id Numbers

A Taxpayer Identification Number (TIN) is an identification number used by the IRS in the administration of tax laws. It is issued by IRS. A Social Security number (SSN) is issued by the SSA whereas all other TINs are issued by the IRS.

Taxpayer Identification Numbers

  • Social Security Number "SSN"
  • Employer Identification Number "EIN"
  • Individual Taxpayer Identification Number "ITIN"
  • Taxpayer Identification Number for Pending U.S. Adoptions"ATIN"
  • Preparer Taxpayer Identification Number"PTIN"

You know that any business entity is required to file tax returns every year. Will your Social Security number suffice for that? Not quite. Unless you are the only person working in the business, you need to get Tax Identification Number for your enterprise. Tax ID Number is a nine digit number and it is assigned by the IRS to business entities operating in the US for the identification purposes. When the number is used only for identification, it is usually referred to as Tax Identification Number, it is known as Employer Identification Number.

So, it is clear that all new businesses need to obtain an Employer Identification Number. The only exception is for exclusive proprietorships which do not have any other employees. However, it is a good idea even for exclusive proprietors to obtain an EIN, so that they can use it instead of their personal Social Security number on bank accounts and legal paperwork.

Confused? We'll make it easier for you. You need an EIN:

  • When you have employees in your company
  • When you purchase an ongoing business
  • When you change your organization type - for example from a sole proprietorship to partnership or corporation
  • When want to hold different accounts in your bank and use EINs for your business and Social Security
    number for your personal accounts
  • When you have a qualified retirement plan
  • When you file any of these tax returns:
  • employment
  • excise
  • alcohol, tobacco and firearm

The EIN is specific to a particular business and you cannot transfer it if you sell or otherwise divest your company. It is very much like your Social Security number which is specific to each individual, and is usually written in the form 00-0000000.

If you do not have your EIN by the time a return is due, write "Applied for" and the date of the application in the space shown for the number. Do not use your social security number in place of your EIN

Don't take chances with your Tax ID Number.