What is a Tax ID Number
A common question that most new business owners have when getting started is – “What is a tax id number and why is it important?” A tax id number remains a number that the IRS uses in tracking and recording tax payments. According to taxpayer categories, you will find a plethora of the IRS. This includes PTIN, ATIN, ITIN, EIN, and SSN. It is important to know that every kind of application has unique requirements for documentation and information. Is your quest for a tax ID, tax identification number, SS-4, EIN applications or ATIN methods of applying? Read on to discover 5 ways on how to properly apply for a tax identification number.
Method 1: Get A Preparer TIN:
1. The first step in applying for a tax identification number through a preparer TIN is by understanding the process. People who are legally responsible for preparing other individuals taxes often get a PTIN. If you are over eighteen years old and planning to prepare other individuals taxes, then apply for a PTIN. To remain valid, it is expedient to renew a PTIN annually. People who want to prepare some forms will not have any need for a PTIN.
2. The next step in this method is by obtaining the Form W-12.
3. At this juncture, you can start to fill in the form. You can type your entries onto the form or print them in black or blue ink. In the space provided in block 1, try to enter your last, middle and first name. Ensure to know if the form is a renewal or initial application. In case the form is for renewal, then ensure to put the PTIN you want to make valid.
Method 2: Obtain An SSN:
1. The SSN is the commonly used TIN since its inception. To get a tax identification number through SSN, you will also need to understand the application procedure. It is assigned to every citizen of the US, temporary working permits, and permanent residents.
2. Go ahead to obtain an SSN application. To obtain this application, you will have to call 800-772-1213, print & download an application from the SSA website, or visiting your local social security office. People within the United States can simply fill out Form SS-4. Individuals who are outside the US can fill out Form SS-4.
3. When filling the form, it is important to provide basic identity details. Ensure to provide family and demographic information.
Method 3: Obtain A Personal Tax Identification Number:
1. For nonresident aliens who do not qualify for an SSN, the ITIN can be issued as a means of tax identification number. Irrespective of the immigrant status, ITINs can be issued. This is because both nonresident and resident aliens can have payment and tax return responsibilities.
2. Applicants will need to obtain the IRS Form W-7. Visiting the IRS website will help applicants to obtain the Form W-7 or the ITIN application. People who are eligible for an SSN should apply for this option rather than an ITIN. It is unequivocal that an ITIN will not be applicable for employment. If your spouse supposes to have an SSN and you fill taxes along with them, then tax returns will no longer be eligible.
3. Provide your basic information when filing the Form W-7. Ensure to correctly enter your tax details and citizenship. When filing the form, ensure the type of documents that will be attached along with it.
Method 4: Obtain An EIN:
1. The corporate equivalent of the SSN is simply an EIN. An EIN is issued to individuals or businesses that have to pay withholding tax on workersor file a different tax return from the original owner. It includes any individual or business that pays partnerships, corporations, workers LLCs or other entities. The EIN can be called the Federal Tax Identification Number or FEIN.
2. The next step is to obtain an employer identification number application. To get an EIN, you will have to fill the Form SS-4 or a single form. The easiest and best way to apply for the EIN application is by visiting the IRS website online this process will allow you to obtain your tax id number online as well. The application is free online and it remains quick to helping obtain your employer identification number upon a complete interview.
3. The name of the business should be provided when filling the EIN application. In box 1, you will have to enter the full legal name of the business owner.
4. The current contact information of the applicant should be provided for easy identification. Relevant tax details should also accompany your application.
5. The general details about the company should be included in the application. During this process, ensure to also provide employee details. The business should be comprehensively described. External parties that have access to your company information should be identified. Once you have finished filing the form, then go ahead to submit.
Method 5: Get An Adoption Taxpayer Identification Number:
1. During the process of adoption, children are assigned a temporary number called ATIN. This number is usually given to children who did not qualify for an SSN at the point when the first tax return remains due. Without an extension, the ATIN will only last for two years. It is important to know that the ATIN may not be eligible to claim the earned income credit on your taxes.
2. The Form W-7A from IRS should be obtained to fill the ATIN application. This application is only available for pending US adoptions. You can hover on the IRS website and download & print the application form.
3. Ensure that the form is properly filled by using a black or blue ink. The parent’s first and last names should be entered along with the SSN as it appears on the tax section.
If you are pondering on a tax ID , tax id number, SS-4, EIN applications or an ATIN W-7A form, then the information in this content will help to get started. With the 5 comprehensive methods in this article, how to properly apply for a tax identification number will no longer be a problem. If you live in the US and looking for the best way to obtain a tax identification number, simply give any of the procedures above a try.