If you’re filling out a form for the government, and you’re asked for a business, or personal “tax identification number”, how can you figure out whether or not you’re giving the right one? There are various numbers that are used by the IRS to identify people for tax purposes and you should know each from the other if you want to be sure you’re giving the right one.
After all, a taxpayer identification number is simply the generic term used by the IRS to designate the type of number allowed to bee used for identification and taxation purposes. Although these numbers can all be used for identification reasons, they’re primarily used to help track payments for individuals who want to pay federal income tax, and so on.
The different types of taxpayer ID available include:
– Social security number: Your social security number is one of the most common forms of identifier available for tax and identification purposes.
– Employer ID: If you run your own business and employ people to work for you, then you will have an EIN, or an employer ID number. This is labeled as an identifier for employers, but you don’t necessarily need employers to have an EIN number.
– Individual tax payer number
What is an EIN Number?
In this article, we’ll be focusing on the employer identification number or EIN number, and what it should mean to you when you’re filing your taxes and completing tax-based forms. An Employer Identification Number, or EIN, is how the IRS can identify your company. Also known as a federal tax number, this set of digits is used to help you conduct activities that would otherwise require social security numbers.
If you’re wondering who needs an EIN, then you’ve come to the right place. Essentially, according to the rules set by the IRS, your business is required to have an EIN if you have your own employees, you operate as a partnership or corporation, or you withhold taxes for another person’s income other than in the case of wages that are paid to non-residents in America.
You will also be required to get an EIN number if you’re equipped with a Keogh plan, or if you’re involved with certain companies that are outlined on the website of the IRS. Beyond tax filing purposes, you might also need an EIN number to apply for business permits, apply for a credit card for funding for your business, or open a bank account on your business’s behalf.
Some people choose to get an EIN number because it gives them a degree of privacy. For instance, if you’re a contractor who works with a particularly large number of clients, then disclosing your social security number to these people could mean that you could end up dealing with problems like personal identity theft. To keep things running more smoothly, you can apply for an EIN, and offer that when people ask for your details instead.
Although an EIN won’t stop you from becoming a victim of identity theft in all circumstances, it could help you to avoid having unwanted people entering your personal accounts.
Understanding Your EIN Number:
The first thing you should know if you’re thinking of applying for an EIN number, is that it’s actually very easy to get one of these sent out to you from the IRS. Do not enter your details in any website page that asks you for money to apply for your EIN. The IRS will allow you to get your number for free, and there’s even an entire page on the website dedicated to this process.
Applying for an EIN is very quick and simple, you shouldn’t need any help from an expert to get the most out of it. Additionally, in many cases, if you apply through the week, between the times of 7am and 10pm, you should receive your EIN instantly.
When you apply for an EIN number, you’ll need to disclose your taxpayer number and name so that you can claim responsibility for your business. Importantly, you won’t be allowed to simply cancel your EIN when it’s been assigned. Instead, the number will belong to your registered business, and even if your number is never used to file a tax return, it might not be reassigned to another business. You cannot cancel your EIN, but you can have the account closed upon request to the IRS.
Can You Look Up Someone Else’s EIN Number?
If you need to find out information about a business, and you require their EIN number to do so, there are a number of ways that you can get the information you need. Remember, all employers must have an EIN, including non-profit organizations, businesses, and government or state agencies. The widespread use of EIN numbers around the US means that they are a useful reference for when you want to identify organizations.
The EIN number of most companies will be printed on their W2 forms, so you can check there for your company if you want to. However, if you don’t have a W2, there are ways that you can look up an EIN number for free, although there may be times when you need the help of a free service.
A good place to start if you want to look up an EIN number for a publicly traded company, is on the Investor Relations Website. Most of these websites have an SEC Filings page, and you can open a Securities and Exchange Commission (SEC) filing document to get this number. Remember that the EIN has to be listed on the first page of the document. Additionally, you can use the SEC EDGAR forms and filing database to find out more information about an EIN number.
Finally, you can also consider looking for EIN Number on a pay-as-you-go database. There are plenty of providers available today that give you the option for exclusively paying for the searches that you perform, instead of having to subscribe to a specific service. This is particularly good if you’re only looking for a few numbers. Just be careful to shop around for different options before you start handing over your cash.