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Tax ID Number

No one enjoys paying taxes, but when you pay your taxes, you need a way to verify to the government that you actually paid your taxes. Rather than just trying to use your name, as it’s likely that you share a name somewhere in the United States, the government instead opts for an identification number that only belongs to you—your tax ID number.

Depending on who you are, you might end up with a different type of tax ID number. However, in the eyes of the law, they’re all different tax ID numbers; it just matters very slightly when it comes to how you received your number. The government takes pains to make sure it can track you through your tax ID number at any given time.

What Is a Tax ID Number?

A tax ID number, which is also called a tax identification number or a TIN, is a simple number the IRS uses to make sure that all taxpayers actually pay their taxes online, and there’s an easy way to say whether or not someone really did it. If you’ve ever paid taxes in the United States, you have a tax ID number, even if you don’t yet know what it is.

What Types of Tax ID Numbers Are Out There?

Everyone who pays taxes in the United States has a tax ID number, and there are also specific elements of the tax process that may require an additional tax ID number other than just your personal one. These are a few tax ID numbers that you might see:

  • Social Security Numbers (SSN)
  • Employee Identification Numbers (EIN)
  • Adoption Identification Numbers (AIN)
  • Individual Tax Identification Numbers (ITIN)
  • Preparer’s Tax Identification Numbers (PTIN)

These can all be very confusing, but the good news is that unless they apply to you, you really don’t have to know about any of these things. Your bookkeeper or accountant should give you more information about your personal tax ID number and whether or not you need to look into other tax ID numbers.

What Does a Tax ID Number Do?

There are multiple functions of a tax ID number. The government doesn’t just assign a tax ID number for fun. It does so because it makes the tax process easier to understand. Here are a few things you might use a tax ID number for:

  • Track an individual
  • Give more information on a business
  • Track estates and trusts
  • Allow individuals who don’t qualify for a Social Security Number to pay taxes
  • Give more information on someone who is preparing taxes

One of the biggest and most important parts of understanding your tax ID number is to remember that tax ID numbers are an important part of understanding the way the government works. Once you know that, everything else typically settles in a little more easily.

How Can Enformion Help You Use Tax ID Numbers?

When you already have a tax ID number, you don’t really have to think about what you’re going to use that tax ID number for. From personal tax ID numbers to specific numbers that don’t require you to be a citizen, Enformion makes it easy for you to connect your information with the more technical information of the tax world.