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What Is A Federal Tax ID Number And Important It Is

What Is A Federal Tax ID Number And Important It Is Finance

The Internal Revenue Service (IRS) assigns the U.S. tax identification numbers (TINs) which are also known as Employer Identification Number (EIN) or A Federal Tax Identification Number and its main purpose is t be able to identify a business entity. Application for this can be done in various ways out of which online methods is also an option and it is free of cost and offered by the Internal Revenue Service. These numbers can be assigned to groups or individual entities and are of different types. TINs can be accepted in the forms of Social Security Numbers (SSNs), Individual Tax Identification Numbers (ITNs) or as EINs and can also be issued by Social Security Administration (SSA) along with the IRS. These numbers would be needed to be filled in any of the tax-related documents for the IRS, tax statements and tax returns for example.
In order to find your own federal tax ID, you can check your W-2 form which should be sent to you by your employer each year. This form would list the tax ID number as social security number (SSN) which can be found in the box–a at the top of the form. In case you cannot get a hold of your social security card, you can always apply for a fresh one with the help of a state ID or driver’s license and the required forms can be filled out at a social security office where you would have to produce a birth certificate and photo ID.
You can also find your employer’s EIN in any of the W-2 forms that have been sent to you by your employer. This number can be found in the box-b at the top of the form. You can also find your employers EIN by making a call to the payroll division.
One question remains is whether one can use a social security number for a tax ID number? Corporations and partnerships are required to have an EIN. But sole proprietors do not require one and instead of the EIN, the IRS permits them to use the social security number.

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