Identification numbers used for tax purposes can be complicated to use. This is particularly notable in the United States, where several types of numbers are used to identify companies. Some can be used interchangeably, while others must be used for strictly defined purposes. Inappropriate use of identification numbers can bring them to the attention of the US tax authority, i.e. the Internal Revenue Service. In order not to face the unpleasant consequences of lack of knowledge, it is advisable to become more familiar with this topic. In particular, the differences between an EIN vs TIN are extremely important.
Multiple identification numbers are in use in the US
A number of taxpayer identification numbers are currently in use in the United States. TIN refers to the taxpayer identification number assigned by the Social Security Administration or the Internal Revenue Service. It defines a suite of identification numbers that apply to tax returns and other tax return-related documents. Individual TINs can be used for specific objectives. An essential TIN is the EIN, which can most simply be described as a business national insurance number. It goes by many names, including Federal Tax Identification Number or Federal Employer Identification Number.
How to use an EIN identification number?
An EIN identification number is used for filing tax returns, opening company bank accounts, applying for various types of licences and for opening merchant accounts. The EIN is intended for companies, but not all businesses are required to have one. Companies that do not have any employees can file their tax returns using an SSN, or Social Security Number. It stands for Social Security Number and consists of nine digits. It applies primarily to sole proprietorships, as well as limited liability companies, or LLCs. The ability to use an EIN, on the other hand, applies to employers, trusts, partnerships, non-profit organizations, corporations, and government agencies.
Methods for acquiring an EIN
There are several ways to apply for an EIN. One is to fill in a form marked SS-4 and send it by fax. This allows four to five days to obtain an EIN. Another way is to apply through the Internal Revenue Service website. This is a quick method that additionally provides the possibility to check for errors and be sure that all the required information has been submitted. With this solution, the EIN is issued within one or two days. Another way is to contact them by telephone, but this requires filling in the Third Party Designee field on the SS-4 form. The last method is to apply by regular mail, but this is the slowest option, which involves sending the number to the physical address provided on the registration form.
Comprehensive services of the tax advisory office
Whatever the situation, the information provided to the state authorities must be complete and up-to-date. Otherwise, you will expose yourself to consequences in the form of the possibility of a fine or other additional charge. For this reason, it is advisable to use the services of specialized tax advisory firms. These include INTERTAX, which offers comprehensive solutions for all those interested in doing business in the USA. For more information on the valid identification numbers, including an explanation of the differences between EIN vs TIN, please visit https://polishtax.com/ein-vs-tin-whats-the-difference/. By working with INTERTAX, you are guaranteed efficiency in all the activities you undertake and a comprehensive and flexible service, tailored to your current needs. Thus, you can conduct your business in the USA without any worries and concentrate on developing your services.