The Tax Identification Number (TIN) is also known as the Employee Identification Number (EIN). The Internal Revenue Service issues the nine digit Tax Identification Number in order to identify each individual business entity. A personally owned business with no other employees may use the individuals social security number as their Tax Identification Number.
Tax Identification Numbers are required on various customs and United States Government forms. The United States Patriot Act also requires you to have and maintain a correct Tax Identification Number in order to operate a business. The Tax Identification Number is also a requirement for “Know Your Customer” compliance throughout the financial industry.
The IRS offers a few different ways to obtain a Tax Identification Number. Obtaining the number from the IRS can be done free of charge or one may opt to hire one of many online companies to acquire the number for them. The different ways offered by the IRS to obtain a Tax Identification Number include, apply online, apply by toll-free telephone service, apply by fax and apply by mail.
The online method of obtaining one’s Tax Identification Number is preferred by most due to its’ convenience and timeliness. The IRS offers a free of charge application on its’ website. Once the application is complete the applicant is provided with their Tax Identification Number during the same online session. This online application is available to all businesses and or residents, in the case of an individual, within the United States.
When applying by phone, the applicant provides the same information required via the online process and is granted a Tax Identification Number during the phone call. This is a toll-free call for applicants within the United States but not for international applicants.
Applicants choosing to fax the application (Form SS-4) must first obtain the state fax number (see Where To File-Business Forms and Filing Addresses). The Tax Identification Number is typically presented to the business via fax within four days. The processing time for applications sent by mail is typically four weeks.
