Number Tax Information

Introduction

When we were still young, if we ever desire something, we would usually just ask our parents to buy if for us. We really do not have that kind of mind yet at such at age but when we grow up until the time that we are so close in being independent, we would slowly learn that life really is not that easy and behind every request that we want our parents to grant, they would sacrifice so much. In what we would call the ‘real world’ where we would go and work for a living, we would be more aware of the number of taxes that we encounter every day. And when we work, we are also given a unique set of numbers called the Taxpayer identification Number.

History

The Taxpayer Identification Number or widely known as TIN is a unique set of identifying numbers for tax purposes in the United States. It is usually issued by either the SSA (Social Security Association) or the IRS (Internal Revenue Service). Would one be required to have a TIN? Yes, TINs are to be furnished on tax related documents like returns and statements.

Features

There are various forms of TINs and listed below are also methods in getting them:

SSN (Social Security Number)

- For this type of tax number, would be required to complete the form SS-5 which is the application for a social security card which you will find on the social security website as well as the other needed requirements such as evidences of you identity, age, U.S. Citizenship or lawful alien status.

EIN (Employer Identification Number)

- Or also known as the federal tax identification number used in identifying business entities which are also used by estates and trusts whose income are required to be reported on the Form 1041, U.S. Income Tax Return for Estates and Trusts.

ITIN(Individual Taxpayer Identification Number)

- This type of tax number is usually used by aliens who works or even those who does not work in the U.S. This also applies for those with temporary visa or non-resident visas with US income. But why would they be required to have a tax number? It has been told that banks around the country do not allow them to open bank accounts unless they have an ITIN.

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

- It is a temporary nine digit tax number issued by the IRS to people who are undergoing the process of adopting a U.S. citizen or child when the individual could not obtain an SSN for the child in time for the tax return. The Form W-7A, application for Taxpayer Identification Number for Pending U.S. Adoptions is used to apply for ATIN but take note that if the child to be adopted to is not a US citizen you cannot use the form W-7A.

PTIN (Preparer Taxpayer Identification Number)

- This tax number is issued by the IRS to the paid preparer so that they wouldn’t need to disclose their DDN on the return they prepare. Take note that the PTIN cannot be used in place of EIN of tax preparation firm.

 

 

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