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.
When you are trying to get your business started, you want to have all of the proper information. The Taxpayer Identification Number can be used for returns, tax statements, and other tax-related documents. You can easily obtain this number for your records.
When Will You Need a TIN
You will need to know about the EIN vs TIN when you are trying to get your business off the ground. A TIN is an identification number which is used by the IRS in the administration of tax laws. A TIN must be furnished not only when you are filing your tax returns, but also when you are claiming treaty benefits.
There are several short and long-term benefits to having a TIN. The TIN must be on a withholding certificate for effectively connected income or certain annuities.
There are many ways you can secure a TIN for your business. You will need to complete the application for a Social Security Card, which includes evidence of your identity, age, and US citizenship. You can contact your local Social Security Office online or visit in person.
What Is the Difference Between a FEIN and EIN?
The FEIN vs EIN issue refers to tax identification numbers used to identify a business entity for federal tax purposes. The EIN is used by estates and trusts, which are required to be reported on IRS forms such as the 1041. Applying for an EIN can easily be done online, and you can have access to your number immediately after completing the application.
Knowing the difference between the various numbers that are used to identify your business can help you gain peace of mind. For more information on the TIN, EIN, or FEIN, contact us today.