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 unending grouping of letters could appear, it’s important that you simply 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 while you may want to make use of them.



Tax Identification Numbers

A TIN is a basic time period used to confer with all sorts of IRS issued identification numbers. If an IRS type asks for a TIN, you’ll nearly all the time use your shopper’s EIN, ITIN, or SSN, relying on the shopper.



Preparer Tax Identification Quantity

A PTIN is particular to tax professionals who put together IRS kinds for his or her purchasers. 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 workplaces, so each particular person who’s compensated for making 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 also be particular to tax preparers. On this case, solely accountants and tax professionals who want to entry their shopper’s confidential tax data (through IRS Kind 8821) or signify their purchasers earlier than the IRS (through IRS Kind 2848) usually want a CAF quantity. You may get a CAF quantity by submitting Kind 2848 or 8821 and writing “None” within the area designated for the CAF quantity. The IRS will ship you a CAF quantity inside a number of weeks.



Social Safety Quantity

Social safety numbers are usually solely utilized by US residents. These nine-digit numbers are assigned upon start or when an individual is granted citizenship. This may doubtless be the most typical tax identification quantity you’ll use when filling out IRS kinds in your particular person purchasers.



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 aren’t 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.



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 checklist of EIN {qualifications}. In case 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.


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