TaxBandits Knowledge Base

Who Uses Each Type of IRS TIN Number?

The Internal Revenue Service (IRS) issues various types of Taxpayer Identification Numbers (TINs), and each type serves a specific purpose. Here's a breakdown of who typically uses each type:

1. Social Security Number (SSN):

Used by individuals: U.S. citizens, permanent residents, and temporary residents authorized to work in the U.S.

Purpose: Mainly for personal tax purposes, employment, and Social Security benefits.

2. Employer Identification Number (EIN):

Used by businesses and entities: Corporations, partnerships, LLCs, nonprofits, estates, trusts, and other entities.

Purpose: For tax filing, employment tax reporting, opening business bank accounts, and other business-related activities.

3. Individual Taxpayer Identification Number (ITIN):

Used by individuals who are not eligible for an SSN: Nonresident aliens, dependents or spouses of U.S. citizens/residents, and others.

Purpose: Allows individuals to comply with U.S. tax laws, even if they are not eligible for an SSN.

4. Adoption Taxpayer Identification Number (ATIN):

Used in special cases related to adoption: Assigned to a child during the adoption process before the adoption is finalized.

Purpose: Enables the claiming of certain tax benefits related to adoption.

In summary, SSNs are primarily for individuals, EINs for businesses and entities, ITINs for individuals who cannot get an SSN, and ATINs for temporary use in adoption-related tax matters. Each TIN type serves a specific function in the context of U.S. tax reporting and compliance.