Difference between a Tax ID & EIN

by ETF Base on August 16, 2016

There are a few different types of tax numbers that individuals might need to utilize when filing their taxes, and it can be confusing to distinguish one from the other. Sometimes people even use them interchangeably, but the fact is that there are tangible differences between them, and the IRS certainly doesn’t view them as the same thing. A Tax ID, for example, is a generic term that is usually used to refer to an individual Taxpayer Identification Number (ITIN). This number is used by the IRS to individuals who are not eligible for an Employer ID Number (EIN) or a Social Security Number (SSN). An EID is a number used by businesses that have employees – and even by some that don’t, depending upon what other criteria they meet.


The point is that these numbers are very different and are used in different ways. The clearest difference is that Tax IDs – or ITINs – are used by individuals. EINs, on the other hand, are used by businesses. Keep this in mind if you’re asked for one or both of these numbers at tax time and find yourself confused.


Now let’s move on and talk about how to acquire these numbers!


Tax ID Application

You can fill out an application for an ITIN online. Visit the IRS website and complete a Tax ID Application. Make sure that you read through the requirements and have the required documents available before beginning the process.


EIN Application

When you’re looking to acquire an EIN, you need look no further than the IRS website! You can fill out an EID Application online for free. Just like with the Tax ID Application, however, you should look over the requirements before beginning the application process.


Looking to apply for a tax ID number? Start a business? Visit GovDocFiling.com for more.

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