Many people tend to get confused when it comes to the concept of federal tax ID numbers, tax ID numbers, EINs, and TINs. This is especially true when you’re writing out a document and asked for precise identification when you’re uncertain of the difference. In addition to individuals, company entities need to be aware of the different types of identification they can use to file taxes and what purposes they serve.
What Is an EIN or FEIN?
An EIN, or employer identification number, is a nine-digit number used by the IRS to identify your company’s tax accounts. Like with a federal tax ID number, the IRS utilizes this identification number to identify taxpayers who must file various business tax returns.
You will need to obtain an EIN/FEIN if you have employees; operate your business as a corporation or as a partnership; withhold revenue other than pay for a foreign alien; or are involved with trusts, estates, nonprofits, farmers’ cooperatives, plan administrators, or real estate mortgage organizations.
What Is a Tax ID Number or TIN?
A tax ID number, also known as a TIN, is an identifying number used for tax issues in the United States of America. It may be assigned by the Internal Revenue Service (IRS) or Social Security Administration.
TIN vs. FEIN
So, what is the difference between an FEIN vs. federal tax ID number, or the difference between an EIN vs. tax ID number? A FEIN is the same as a federal tax ID number and EIN, and a TIN is one type of this tax identification.