What Is The Difference Between A TIN And An EIN?

Back to FAQs

 

When you are ready to start your business, you will need to take a few steps to ensure the process goes smoother. If you are unsure about the difference between a TIN vs. EIN, contact the IRS-EIN. They will be able to help you navigate the complicated paperwork that comes with starting a business.

What to Know When it Comes to a TIN Application:

When you are ready to apply for a TIN, you will need to know the difference between the TIN and EIN. The TIN, or the taxpayer identification number, is used by the IRS to track businesses and individuals for tax purposes. The TIN needs to be on any documents sent to the IRS, such as tax returns.

The Internal Revenue Service uses the EIN to recognize a business. The business must submit a form requesting an EIN so any taxes paid while operating a business can be separate from business taxes.

The IRS can Help You get Your Business off the Ground.

When you are ready to apply for an EIN online, you will not have to worry; it is a simple process. You will need to have this number if you are starting a new business or hiring new employees.

The IRS is here to help the small business owner. The application for the EIN is open 24/7/365, so there is a team to ensure that you get the help you need when you need it. The application and support team are available online any time, and they offer customer service via telephone if necessary.

One of the key things you need to know when starting a business is the difference between a TIN vs EIN. To navigate the complicated process of starting a business, the IRS-EIN can be your biggest ally.

First, it is important to understand that you can’t really compare a Taxpayer Identification Number (TIN) to an Employee Identification Number (EIN) because they are not exactly parallel concepts, though they certainly are related. Read on for a breakdown of their relationship.

Similar, but Different

A TIN is a broad umbrella term that refers to a nine-digit number assigned by the federal government to individuals and businesses to identify them for tax purposes. There are actually five types of TINs. They include EINs, as well as Social Security Numbers (SSNs), Individual Taxpayer Identification Numbers (ITINs), Taxpayer Identification Numbers for Pending U.S. Adoptions (ATINs) and Preparer Taxpayer Identification Numbers (PTINs). Each of these can be obtained by filling out the proper form for each corresponding TIN. Simply log on to the IRS-EIN website at www.irs-ein-tax-id.com to help you decide which type of TIN you need for your personal situation. Then, find out which corresponding form you need to secure your TIN.

So, What About the EIN?

An EIN, more specifically, is a type of TIN assigned to business entities only, not to individuals. Also known as a federal tax identification number, it is used to identify your business as a single entity in the eyes of the federal government in all tax-related matters. It is also the proper TIN for all trusts and estates that derive income from their financial holdings. These earnings are required to be reported on Form 104, U.S. Income Tax Return for Estates and Trusts.

While this may all seem confusing, especially if you are a new taxpayer or are just starting your own business, fear not. Just make a quick visit to our website and you’ll discover how easy it is to have your questions answered and paperwork done.

Select Your Entity Type to Apply for a Federal Tax ID Today