Taxpayer Identification Number (TIN) & Employer Identification Number (EIN): Definitions & Resources
You'll almost certainly need to supply a tax identification number, often known as a TIN or tax ID number while filing your tax return or contacting the IRS. Here's what a tax identification number is and how to get one.
What is a tax identification number (ITIN)?
A tax identification number, or TIN, is a nine-digit number that uniquely identifies you to the Internal Revenue Service. It's required on your tax return, and it's also sought in other dealings with the IRS. The most prevalent tax ID numbers are Social Security numbers, however, the ITIN, EIN, ATIN, and PTIN are also popular.
Individual Taxpayer Identification Number (ITIN) is a number that is assigned to each (ITIN)
What it entails: Nonresident and resident aliens, their spouses, and their dependents who are unable to get a Social Security number are given an Individual Taxpayer Identification Number or ITIN. The Internal Revenue Service (IRS) issues the ITIN.
How to Get an ITIN: Fill out IRS Form W-7 to obtain an ITIN. You must show proof of your foreign/alien status as well as your identity. In addition, a federal income tax return must be attached to your Form W-7 (there are some exceptions; the instructions to the W-7 have the details). The IRS has authorized "acceptance agents" to assist consumers in obtaining ITINs.
The number 9 is usually at the start of an ITIN.
Individual tax ID numbers with the middle digits 88, as well as those that have not been used on a tax return in the last three years, will expire at the end of the year. the end of 2020. ITINs with the middle numbers 90, 91, 92, 94, 95, 96, 97, 98, or 99 that were issued before 2013 and were not renewed will also expire in 2020.
The number assigned to the employer (EIN)
What it entails: An EIN is a tax identification number for firms that have workers, are corporations or partnerships, withhold taxes on income received to nonresident aliens, have Keogh plans, or are connected with certain types of organizations.
or file tax returns for employment, excise, or the Alcohol, Tobacco, and Firearms Act. The primary place of business must be in the United States or a U.S. territory, and the individual (not an entity) seeking the EIN must already have a Social Security number, ITIN, or other EIN. An EIN may be required by the IRS for an estate or trust.
How to get an EIN: You can apply for an EIN with the Internal Revenue Service (IRS) online. You can also fill out IRS Form SS-4 and send it to the IRS via fax or mail. To obtain an EIN, international applicants can phone 1-267-941-1099.
Note that your company may also require a separate state Employer Identification Number.
Taxpayer Identification Number for Adoption (ATIN)
What it entails: The IRS issues an Adoption Taxpayer Identification Number, or ATIN, to those who are in the process of adopting a child. It is a temporary nine-digit tax ID number. If the adoptive parents are unable to obtain a Social Security number for their child in time to submit their tax return, the IRS will give the number. The number is unique to the child and is required for the parent to claim the youngster as a dependent.
How to receive an ATIN: Fill out IRS Form W-7A to obtain an ATIN. A copy of the placement documentation must be attached. The child must be lawfully placed for adoption in your family. You can still receive an ATIN if you're adopting a child from another nation, but there are some additional requirements (see the details here).
With this tax ID number, you will be unable to receive the Earned Income Tax Credit (you can only use a Social Security number to do that).
Once the IRS receives your Form W-7A, it takes four to eight weeks to receive an ATIN, so request it well before your tax return is due.
The IRS will automatically deactivate an ATIN after two years unless you tell them that the adoption is still pending.
Taxpayer Identification Number (TIN) (PTIN)
A PTIN stands for "Preparer Tax Identification Number." A PTIN is required by the IRS for anybody who prepares or aids in the preparation of federal tax returns for a fee. On clients' tax returns, tax preparers must include their PTIN numbers.
How to obtain a PTIN: In about 15 minutes, preparers can obtain a PTIN from the IRS online. They can also fill out IRS Form W-12 and mail it to the IRS. It takes four to six weeks to complete this approach.
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