ITIN stands for Individual Taxpayer Identification Number, is a tax processing number issued by the Internal Revenue Service. It is a United States tax processing number issues to the people who are not eligible for SSN (Social Security Number) but must have a United States taxpayer identification number. The identification number helps people comply with the U.S. tax laws created in 1996 to allow tax return filling by individuals without a Social Security Number. As of 2014, the IRS stated the ITINs would expire if the numbers are not used in the last five years. Let’s see how to Apply for ITIN?
How to Apply for ITIN?
The Individual Taxpayer Identification Number (ITIN) is issued regardless of the immigration status for both residents and non-residents aliens who don’t have an SSN or are not eligible for an SSN. Applying for an ITIN is relatively easy. You need to complete IRS Form W-7. The Form W-7 requires documentation that requires foreign/alien status and identification of each individual. The individuals need to mail the documentation and Form W-7 to the official address or present all the documents at the IRS walk-in offices. You can also apply for ITIN through an acceptance agent authorized by the IRS.
What is EIN?
Employer Identification Number (EIN) is also known as the Federal Employer Identification Number. It is issued by the Internal Revenue Service (IRS) to business entities operating in the United States for the identification process. As the citizens of the U.S. have SSN to identify themselves, it’s the same for businesses; businesses Obtain an EIN to identify themselves as business entities. The EIN provided to the company is never reissued for any other business for their identification.
How to Obtain an EIN?
An EIN is issued to legally registered business entities and those business entities located in the U.S., and the person applying for the EIN should have their taxpayer identification number. An EIN is required by the business to pay their federal taxes, file annual tax returns, issue payroll and tax documents to suppliers. The companies need completed IRS Form SS- before applying or requesting for EIN. You can also apply for an EIN online using any authorized website eligible to process the application for Employee Identification Number (EIN).
What is the difference between ITIN and EIN?
Many people, including the U.S and the, immigrate, often get confused between the two ITIN and EIN, so let’s see the fundamental difference between the two. Both of them are different from each other. Individual Taxpayer Identification Number (ITIN) is issued to an individual in the U.S. as a tax processing number who is not eligible for an SSN. In contrast,the Employee Identification Number (EIN) is issued to business entities and not for individuals. ITIN is used for an individual’s tax fillings, and EIN is used for a business’s tax fillings.