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The Curious Bag
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An Employer Identification Number or EIN is one of five types of Taxpayer Identification Numbers, or TINs, issued to American citizens or businesses. These numbers are used by the Internal Revenue Service (IRS) to administer tax laws. The other four types are the Preparer Taxpayer Identification Number (PTIN), Taxpayer Identification Number for Pending U.S. Adoptions (ATIN), Individual Taxpayer Identification Number (ITIN) and the Social Security Number (SSN).
Who Assigns TINs?
Individuals can obtain SSNs from the Social Security Administration (SSA). The other numbers are for businesses and are obtained from the IRS.
What are EINs Used for?
EINs, also referred to as a Federal Tax Identification Numbers, are created to identify businesses to the IRS. They can also be used to open business bank accounts.
Who Needs an EIN?
Businesses need EIN numbers to report tax information to the IRS. Businesses can be either a self-employed individual acting as a business, or a larger business with employees. Not all businesses need an EIN.
How to Know if you Need an EIN?
The IRS has a checklist online to determine if you need an EIN number. See the link in the Resources section. Typically, if you have employees, have an employees savings plan, work with trusts or estates or withhold taxes, your business will need an EIN.
How to Apply for an EIN
Businesses can easily apply for an EIN number by phone, fax, mail or by completing an application online with the IRS. See the link in the Resources section.
Source:
National Institute of Standards & Technology
Resource:
Do you Need an EIN?
Apply Online for EIN
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