If you’re filing a tax return, chances are high that you need a tax identification number (TIN) to do so. As its name implies, it’s a number the IRS uses to help identify taxpayers, whether they’re an organization or individual. If you’re like most individuals, you’re probably using your Social Security number (SSN) as your TIN. However, there are other identification numbers used by the IRS. Let’s take a look at some of these and why they exist.
Employer Identification Number (EIN)
This is the tax identification number for most businesses and tax-exempt organizations. It’s also used by trusts and estates with reportable income.
If you need an EIN, you can apply for one for free online. It should only take a few minutes if you have all of the necessary information available (type of organization and the TIN of the responsible party who controls the organization).
Individual Taxpayer Identification Number (ITIN)
This is a TIN for individuals who aren’t eligible for an SSN. The ITIN is a nine-digit number presented in the same format as an SSN (XXX-XX-XXXX), but always begins with the number “9.” Most people who use an ITIN are resident or nonresident aliens (and/or their spouses and dependents).
To obtain an ITIN, you must complete IRS Form W-7, IRS Application for Individual Taxpayer Identification Number.
Taxpayer Identification Number for Pending U.S. Adoptions (ATIN)
The ATIN is one of the rarest of all TINs, as it’s a temporary nine-digit number that the IRS gives to individuals who are in the process of adopting a child. ATINs exist for situations where the adopting parents are unable to obtain an SSN for their child in time to file their tax returns.
Parents can obtain an ATIN by completing IRS Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions. Keep in mind that this form isn’t used if the child being adopted is not a U.S. citizen or resident.
Preparer Taxpayer Identification Number (PTIN)
These are numbers used by tax preparers to identify themselves on returns they help prepare for their clients. Since 2011, all paid tax preparers have had to use a valid PTIN for all tax returns they were paid to prepare. The reason for this rule was to protect the preparers’ private information, as they previously had to use their SSNs when filing tax returns for their clients.
There are two ways to obtain a PTIN. First, you can apply online. Second, you can apply by mailing in IRS Form W-12, IRS Paid Preparer Tax Identification Number (PTIN) Application and Renewal. It should be noted that the online process is much faster, taking as little as 15 minutes compared to the paper method which can sometimes take over a month to process. Because PTINs expire at the end of each year, you’ll need to reapply each year to keep your PTIN active.
Identity Protection PIN (IP PIN)
This isn’t technically a TIN, as it’s not used to help identify the taxpayer filing a return. Instead, it’s used to confirm the identity of the person filing a tax return. Therefore, the goal of the IP PIN is to prevent tax-related identity theft.
The IP PIN works because it’s a six-digit number that only the IRS and the taxpayer is supposed to know. When an identity thief tries to file a tax return using someone else’s SSN and doesn’t provide the correct IP PIN (or doesn’t provide one at all), the IRS will recognize that return as fraudulent. This can help prevent scammers from stealing tax refund checks, for example.
Even if an individual isn’t required to file a tax return for a given year, the IP PIN can still be helpful because it can protect that individual’s IRS account from scammers trying to access or alter personal information.
If the IRS confirms that you’ve been the victim of tax-related identity theft, you’ll automatically get an IP PIN from the IRS when it mails you a CP01A Notice each year. Yet you don’t need to wait until you’re an ID theft victim to obtain an IP PIN.
To obtain an IP PIN as a preventative measure, you can request one through your online IRS account. If you do this, you’ll need to sign onto your online IRS account each year to obtain your new IP PIN. These are typically issued starting in mid-January.
