If you receive income, or have any taxable or reportable activity, such as a business or other entity, the government expects you to pay taxes. And to file taxes, the IRS requires that you provide a Taxpayer Identification Number.
What is a Taxpayer Identification Number?
A Taxpayer Identification Number, or TIN, is a nine-digit tracking number assigned to a taxpayer. A Social Security number is one form of TIN and is used by most taxpayers when filing their federal and state tax returns.
A TIN is often required for non-tax-related purposes, too, such as opening a bank account, applying for a loan, applying for a job, buying or renting property and claiming benefits from the government.
Types of Taxpayer Identification Numbers
Social Security Number (SSN)
The most common type of Taxpayer Identification Number is the Social Security number, issued by the Social Security Administration. A Social Security number is assigned to U.S. citizens, permanent residents and some noncitizens. 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 want to use government services, claim benefits, seek employment or file taxes. Applying for a Social Security number (or any other TIN for that matter) is free.
Employer Identification Number (EIN)
The Employer Identification Number, or EIN, is issued to corporations, nonprofit organizations, estates, trusts and any other business that are required to pay taxes. This number is used when reporting annual income for taxation.
The IRS offers a list of yes or no questions to help you figure out if you need an EIN.
Individual Taxpayer Identification Number (ITIN)
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 similar to a regular nine-digit TIN, but to obtain this, the individual needs to submit Form W-7 along with documents proving their resident status.
Adoption Taxpayer Identification Number (ATIN)
In the case of domestic adoption of children, if the adoptive parents are unable to get the child’s Social Security Number in time for filing their tax return, they can apply for a temporary Adoption Taxpayer Identification Number (ATIN). Certain conditions must be met, such as the adoption has to be pending and the child should be a U.S. citizen or permanent resident.
Preparer Tax Identification Number
A Preparer Tax Identification Number, or PTIN, is issued to tax preparers and must be included on all returns completed by a paid tax professional.
How to get a Taxpayer Identification Number
The IRS offers information on how to apply for different Taxpayer Identification Numbers.
- Social Security Number (SSN): Complete Form SS-5, Application for a Social Security Card, and submit proof of your identity, age, and U.S. citizenship or lawful alien status, the IRS says. You can also call 800-772-1213 to start the application process.
- Employer Identification Number (EIN): There are a number of ways to apply for an EIN, including online, fax, mail and telephone. If your business is located in Puerto Rico, use this form.
- Individual Taxpayer Identification Number (ITIN): Complete IRS Form W-7, IRS Application for Individual Taxpayer Identification Number. You can mail the material, take it to an IRS walk-in office or submit it through an Acceptance Agent authorized by the IRS.
- Adoption Taxpayer Identification Number (ATIN): Complete Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions. This form is not applicable to children who are not U.S. citizens or residents. The IRS has an FAQ section about this process.
- Preparer Tax Identification Number (PTIN): Tax preparers can apply for a PTIN through the IRS sign-up system. You can also complete Form W-12, IRS Paid Preparer Tax Identification Number Application. However, the IRS says the PTIN paper application takes four to six weeks to process.
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