One thing that most people dread doing is taxes. When tax season rolls around, we would rather be doing literally anything else, which is why many of us choose to have professionals handle our taxes rather than deal with it ourselves. However, one item that you must have is a tax ID number or TIN. But how do you know when you need a TIN, and where do you get it? Let’s go over the basics of this process.
What is a TIN?
Simply put, this is a comprehensive term that the IRS uses to classify all numbers that are granted to individuals or businesses as a means to track their taxes. A common example of a TIN is your social security number, which you use to file your return for yourself and your family. Overall, this is a federal tax ID number that is used for tracking purposes.
How do I get one?
If you already have a social security number, then you don’t have to worry about getting a TIN because you already have one. However, if you plan on starting a business and need to get a new ID number for your company, then that will be an employer ID number or EIN. The reason that you have to get a new number for your business is that you will file separate taxes for your company that won’t be tied to your social security number.
Can I Check my Tax ID Status?
If you have recently applied for a TIN or an EIN number, then you can check online through the IRS website to see if it has gone through and if the number is valid. If you don’t have access to a computer, you can call the IRS directly.
Overall, getting a TIN or EIN is a relatively simple and straightforward process, and thus it should be fairly easy to attain.