Taxpayer Identification Numbers

Taxpayer Identification Numbers

Taxpayer Identification Number (TIN) is an important identification number issued by the Social Security Administration (SSA) or International Revenue Service (IRS) and used by the IRS in the administration of tax law. In most cases, IRS issues Taxpayer Identification Numbers while SSA issues Social Security number (SSN).

Types of Taxpayer Identification Numbers:

Social Security Number (SSN)

Individual Taxpayer Identification Number (ITIN)

Employer Identification Number (EIN)

– Taxpayer Identification Number for Pending U.S. Adaption (TIN)

– Preparer Taxpayer Identification Number (PTIN)

Importance of the Taxpayer Identification Numbers:

A TIN is useful when filling return, statements, and other tax-related forms. For instance, you need a TIN when filing your tax returns and when claiming treaty benefits. It is also necessary when claiming for tax treaty benefits, exemption for effectively connected income and exemption for certain annuities. You are also required to list individual income tax return social security number (SSN) or Taxpayer Identification number when claiming for exemptions for dependent or spouse.

Tax ID Number SS-5 Form:

To obtain a TIN, you need to complete a Tax ID Number SS-5 Form is normally available in PDF form. You also require to submit evidence of your identity, age, and U.S. citizenship identification. You can obtain a Tax ID Number SS-5 Form from your Local Social Security Office.

Employee Identification Number (EIN):

EIN is a Tax Identification number used by the Federal government to identify a business entity. It is also used to identify estates and trust that have income generating activities that have to be reported on form 1041, which is an Income Tax Return for Estates and Trust.

Individual Taxpayer Identification Number (ITIN):

ITIN is an individual tax processing number available to a certain non-resident, resident aliens, dependents as well as their spouse who cannon get Social Security Number. To obtain ITIN, you have to complete IRS form. The form requires documentation that proves individual foreign status as well as true identification for each individual.

Taxpayer Identification Number for Pending U.S. Adaption (ATIN)

Adoption Taxpayer Identification Number (ATIN) is a temporary number assigned by IRS to an individual who is still in the process of legally adopting U.S. citizenship. Adoption Taxpayer Identification Number is important in the application of ATIN.

Preparer Taxpayer Identification Number (PTIN):

PTIN is only assigned to paid tax preparers and is used when returning tax prepared by the preparer. A tax preparer can apply for a PTIN online using Form W-12 using IRS Paid Preparer Tax Identification Number Application.

Foreign Persons and IRS Employer Identification Numbers:

Non-individual foreign entities such as foreign corporations that are required to have Federal Employer Identification Number must complete and submit Form SS-4 Application for Employer Identification Number to the Internal Revenue service to obtain EIN.

This number is important when claiming an exemption from withholding due to tax treaty must. When completing line 7b of Form SS-4, the applicant is required to write N/A in where they are required to fill for SSN or ITIN, if he has not obtained them. If the foreign entity late becomes liable to file U.S. tax return, the entity would not be needed to seek for a new EIN but can use EIN that was issued on all U.S. tax payers in the first place.

Taxpayer Identification Numbers