It doesn’t take lengthy working with tax kinds to comprehend that the IRS makes use of a bewildering number of acronyms. As complicated because the endless grouping of letters could seem, it is vital that you just perceive the distinction between a PTIN, ITIN, and CAF quantity.

So we’ve put collectively a straightforward reference for the most typical identification numbers the IRS will ask for. Learn on to see what each means, who wants each, and once you may want to make use of them.

TIN

Tax Identification Numbers

A TIN is a common time period used to seek advice from all varieties of IRS issued identification numbers. If an IRS kind asks for a TIN, you’ll nearly at all times use your shopper’s EIN, ITIN, or SSN, relying on the shopper.

PTIN

Preparer Tax Identification Quantity

A PTIN is particular to tax professionals who put together IRS kinds for his or her shoppers. There are a number of IRS kinds that do not require you to submit your PTIN, however most will. PTINs can’t be shared by teams or places of work, so each particular person who’s compensated for getting ready or serving to put together tax returns or tax kinds will need to have their very own PTIN. You may apply for a PTIN on-line or utilizing Form W-12.

CAF Quantity

Centralized Authorization File Quantity

A CAF quantity can be particular to tax preparers. On this case, solely accountants and tax professionals who want to entry their shopper’s confidential tax info (through IRS Kind 8821) or symbolize their shoppers earlier than the IRS (through IRS Kind 2848) sometimes want a CAF quantity. You may get a CAF quantity by submitting Kind 2848 or 8821 and writing “None” within the house designated for the CAF quantity. The IRS will ship you a CAF quantity inside a number of weeks.

SSN

Social Safety Quantity

Social safety numbers are typically solely utilized by US residents. These nine-digit numbers are assigned upon beginning or when an individual is granted citizenship. It will possible be the most typical tax identification quantity you’ll use when filling out IRS kinds to your particular person shoppers.

ITIN

Particular person Tax Identification Quantity

An ITIN is a quantity used to make sure federal tax compliance for anybody who pays taxes within the US and doesn’t have (and isn’t eligible for) a social safety quantity. ITINs will not be used for something apart from tax compliance and don’t grant residency, authorized employee standing, or social safety advantages to the person. People are required to file for an ITIN no matter their immigration standing.

EIN

Employer Identification Quantity

EINs are used to determine enterprise entities on enterprise tax returns and different business-related tax kinds. Not all companies want an EIN. Usually, solely companies that pay wages to staff or function as a partnership or company want an EIN. You may test the IRS web site for the entire record of EIN {qualifications}. When you or a shopper does have to file for an EIN, you are able to do so on-line.

Want extra details about IRS kinds? Try this information to generally used IRS kinds.