Tax Identification Number (TIN): What is it and how to obtain it?
What is a tax identification number?
A Tax Identification Number (TIN) is a nine-digit tracking number assigned and used to identify a taxpayer.
If you receive income or have any reportable or taxable activity (in the case of an entity or business), the government expects you to pay taxes for it. To do so, the IRS requires that you first provide a tax identification number.
A Social Security number is a form of TIN that most taxpayers use when filing their federal and state taxes.
A TIN is also required for non-tax purposes, such as opening a bank account, applying for a loan, applying for a job, buying or renting property, and claiming government benefits.
Other types of tax identification numbers
Individual Tax Identification Number (ITIN)
If a resident or nonresident alien (or their spouse or dependent) is not eligible for a Social Security number, they are issued a nine-digit Taxpayer Identification Number (ITIN). This is similar to a regular nine-digit TIN, but to obtain it, the person must submit Form W-7 and documents proving their resident status.
Employer Identification Number (EIN)
The Employer Identification Number (EIN) is the TIN issued to corporations, nonprofits, estates, trusts, and any other business that must pay taxes. This number is used when reporting annual income for taxes.
The IRS offers a list of yes or no questions to help you determine if you need an EIN.
How to obtain a tax identification number?
The IRS offers information on how to apply for different tax identification numbers.
- Individual Taxpayer Identification Number: Complete IRS Form W-7, IRS Request for Individual Taxpayer Identification Number. You must present the documentation of your resident or non-resident alien with Form W-7. You can mail the material, take it to an IRS office, or send it through an IRS-authorized Acceptance Agent.
- Employer Identification Number - There are several ways to apply for an EIN, including online, by fax, by mail, and by phone.