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what is Tax ID and ITIN?

by marthin, Contributor

  • Created: July 7, 2010, 11:03 pm
  • Updated: April 17, 2013, 12:19 pm
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5 comments

I am always confuse between this terms ITIN, EIN and Tax ID, can anyone explain in detail?

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einnumber | Window Shopper | 4/15/2013 - 11:03 pm

This might be an easier way to explain:

Tax ID = Taxpayer Identification Number
Description: A Taxpayer Identification Number is a generic term used by the
Internal Revenue Service to designate the types of number which it allows to
be used for tax purposes.

ITIN Number = Individual Taxpayer ID number
Description: A sole proprietorship commonly uses the owner's Social Security
number for the tax number for the business. Since the business files and pays
taxes through the owner's personal tax return, the SSN is the only Taxpayer
ID Number needed.

EIN Number = Employer ID number
Description: An Employer ID number (EIN) is used by all other types of
businesses, even if the business has no employees. Banks often require a new
business to have an EIN before they can open a business bank account.
Professional Web Site: EIN Number

JimD | Former Moderator | 7/8/2010 - 6:57 am

marthin, Here is some information about EIN and Tax ID. Employer and Tax Identification Numbers Here is the link to the IRS's page on all the definitions ITIN, EIN, TIN, etc. Taxpayer Identification Numbers (TIN) Hope this helps. JimD

marthin | Contributor | 7/8/2010 - 10:16 pm

Show Replied Text…
marthin, Here is some information about EIN and Tax ID. Employer and Tax Identification Numbers Here is the link to the IRS's page on all the definitions ITIN, EIN, TIN, etc. Taxpayer Identification Numbers (TIN) Hope this helps. JimD
JimD thanks for the source, i have read but it is bit difficult to understand properly the exact term, but it is fine i will manage.
Professional Web Site: http://www.firstpropertychoice.com/turkey-property-for-sale-properties.aspx

JimD | Former Moderator | 7/9/2010 - 7:28 am

Show Replied Text…
JimD thanks for the source, i have read but it is bit difficult to understand properly the exact term, but it is fine i will manage.
martin, From my understanding, the term Tax ID encompasses a variety of types of ID: Social Security Number (SSN), Employer Identification Number (EIN), and Individual Taxpayer Identification Number (ITIN). The difference between the EIN and the ITIN are different. An EIN refers to a business entity when the business is paying taxes. More information on EIN can be found here. An ITIN is for an individual who cannot get a Social Security Number (SSN), but still need to pay their taxes. This number is for tax purposes only. More information on ITIN can be found here. Does that answer your question better? EIN, ITIN, and SSN are all different types of Tax ID for different types of people and businesses that are required to pay taxes. Tax ID is a general term whereas, the other are more specific. -JimD

marthin | Contributor | 7/10/2010 - 2:13 am

Thanks you very much JimD, now i can understand diffrence between all, as you have expalined all seperately.