Simple English definitions for legal terms
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A taxpayer identification number (TIN) is a special number with nine digits that the government gives to people and businesses for tax purposes. The TIN helps the government keep track of who is paying taxes and who is not. You need a TIN to file your taxes or get certain benefits. There are different types of TINs, like the Social Security Number (SSN) and the Employer Identification Number (EIN). The government gives out TINs to make sure everyone pays their fair share of taxes.
A taxpayer identification number (TIN) is a unique nine-digit number assigned to individuals or entities by the Internal Revenue Service (IRS) for tax purposes. TINs are used to identify and track taxpayers and are mandatory for filing tax returns or claiming treaty benefits.
There are several types of TINs, including:
The Social Security Administration (SSA) issues the SSN, while the IRS issues all other TINs.
For example, if you are an employee, your employer will use your SSN to report your wages to the IRS. If you are a business owner, you will need an EIN to file your business taxes. If you are a nonresident alien who earns income in the United States, you will need an ITIN to file your tax return.
These examples illustrate how TINs are used to identify and track taxpayers for tax purposes.