What Is a Tax Registration Number?
What is a tax registration number? This nine-digit number is assigned by the IRS to identify businesses for tax purposes.3 min read
What Are the Types of Tax Registration Numbers?
Depending on the type of business you have and other factors, you may need to register for one of the following types of ID numbers for taxation:
- The tax ID number (TIN) is required on all tax returns filed with the IRS. If you are a sole proprietor, you can use your Social Security Number for this purpose. Social security numbers are the most common type of TINs. These numbers are issued by the Social Security Administration and are typically obtained by parents when a new baby is born so that they can claim the child as a dependent. No cost is associated with an SSN application. Trusts and fiduciaries also use a TIN for financial reporting.
- If your business has other employees besides yourself, you will be required to register with the IRS for a separate employer ID number (EIN). Businesses can obtain this number for free by completing IRS Form SS-4.
- A state EIN is used to file your state taxes. In many states, this is the same as your IRS ID number. In other states, you will need to obtain a separate number if you have employees. These states currently include South Carolina, Massachusetts, and New York.
- An individual tax ID number (ITIN) is assigned to nonresident aliens who may need to report taxes to the IRS. This is used for individuals who are not eligible for an SSN, such as the spouse of an individual who works in the United States. To register for an ITIN, you will need to complete IRS Form W-7 and include supporting documents that indicate your legal working status in the U.S. You can also consult an agency such as a bank, accounting firm, or college for assistance.
- The adoption tax ID number (ATIN) is used when parents adopt a child domestically but are unable to register for an SSN for the baby before taxes are due. Eligible children must be in the process of being adopted and must be U.S. citizens.
- The preparer tax ID number (PTIN) is used on returns filed by a professional tax preparer and have become mandatory as of 2011. A professional preparer is defined as anyone who prepares all or part of another individual's tax return in exchange for a fee.
Once you have registered for your tax number, it must be used on all IRS documents and other financial filings.
What Is a Tax Deduction and Collection Account Number?
This number, also called TAN, is a 10-digit alphanumeric code used in India to track those responsible for collecting and deducting taxes on behalf of the Income Tax Department. This includes wages deducted or collected at the source, which must be deposited to the Indian government. Private limited companies, proprietorships, and other business entities must apply this procedure to salaries, contractor or subcontractor payments, and rent payments exceeding a certain amount.
Under the Indian Income Tax Section 203A, TAN must be included in all deduction and collection returns, payments, and certificates that are issued. You will also use this number anytime you need to communicate with India's Income Tax Department and include it on correspondence with your bank or financial institution.
When tax is deducted from an income source, the TAN entity will provide proof of tax collection in the form of a TDS Certificate. Failure to obtain a TAN or use it as required carries a penalty of 10,000 rupees. Businesses can apply for the TAN online.
This number is called a tax file number in Australia. Businesses and employers must apply for this number and will use it permanently once it is assigned.
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