A Tax Identification Number (TIN) is a unique nine-digit code issued by either the Internal Revenue Service (IRS) or the Social Security Administration (SSA) to individuals and businesses. It’s primarily used to identify taxpayers when they file returns, pay taxes, or complete other tax-related transactions. Since it’s used for tracking and reporting purposes, a TIN must be included on all relevant tax forms.
Understanding the Role of TINs in Business
Every company is required to maintain up-to-date TINs for their employees. When it comes time to file taxes, employers must use these identifiers to accurately report employee earnings to the IRS. TINs are not just for tax reporting—they’re also used by financial institutions such as banks and credit unions to fulfill regulatory requirements. There are several types of TINs depending on the purpose and the type of taxpayer.
Common Types of TINs
Here are the most commonly used types of Tax Identification Numbers:
1. Social Security Number (SSN)
The SSN is probably the most familiar type of TIN. It’s issued by the Social Security Administration and is typically assigned to U.S. citizens and permanent residents. To obtain an SSN, individuals can apply online, by mail, or in person at an SSA office. Be sure to have documents proving your identity, such as a birth certificate or passport.
Cost: There’s no charge to apply for or receive a Social Security card.
2. Employer Identification Number (EIN)
An EIN is used to identify business entities, including corporations, partnerships, and nonprofits. It’s issued by the IRS and is required for various business operations, such as hiring employees, opening a business bank account, or filing corporate tax returns. The quickest way to obtain one is by applying directly on the IRS website. Alternatively, applicants can complete Form SS-4 and submit it by mail or fax.
Cost: There is no fee to apply for an EIN, and in many cases, the number is issued instantly through the IRS site.
3. Preparer Tax Identification Number (PTIN)
A PTIN is required for professionals who are paid to prepare or assist in preparing federal tax returns. Applications can be submitted online in under 20 minutes or completed on paper using Form W-12, which typically takes 4–6 weeks to process.
Cost: Both new applications and renewals have a fee of $30.75.
4. Individual Taxpayer Identification Number (ITIN)
The ITIN is designated for non-U.S. residents, certain resident aliens, and their dependents or spouses who are not eligible for an SSN. These numbers always begin with a “9” and are formatted similarly to SSNs. To apply, individuals must complete IRS Form W-7 and include documentation verifying their foreign status and identity.
Applicants can submit documents in one of three ways:
- Mail the application and documents to the IRS
- Visit an IRS Taxpayer Assistance Center
- Use an authorized Acceptance Agent
Cost: There is no fee to apply for an ITIN.
SSA vs. IRS: Who Issues What?
While SSNs are issued by the Social Security Administration, all other TINs, EINs, PTINs, and ITINs, are provided by the IRS.
Are SSNs and TINs the Same Thing?
Not exactly. A Social Security Number is a type of TIN, but it’s not the only one. SSNs fall under the broader category of Tax Identification Numbers, each serving a different purpose depending on the taxpayer’s status and needs.
Whether you’re hiring staff, preparing taxes, or opening a bank account for your business, understanding and managing TINs is essential. If you’re unsure how to stay compliant, Beyond offers payroll and HR solutions to help businesses handle employee documentation, tax reporting, and more with confidence and ease.