ITIN vs. TIN

Attribute	ITIN	TIN
Definition	Individual Taxpayer Identification Number	Taxpayer Identification Number
Issued by	IRS (Internal Revenue Service)	IRS (Internal Revenue Service)
Usage	Used by individuals who are not eligible for a Social Security Number	Used by individuals for tax purposes
Format	9 digits, beginning with 9	9 digits
Validity	Valid for tax purposes only	Valid for tax purposes and other identification purposes

Introduction

When it comes to tax identification numbers, there are two main types that individuals and businesses may encounter: ITIN (Individual Taxpayer Identification Number) and TIN (Taxpayer Identification Number). While both serve the purpose of identifying taxpayers to the IRS, there are some key differences between the two that are important to understand.

ITIN Overview

ITIN is a tax processing number issued by the IRS to individuals who are required to have a U.S. taxpayer identification number but are not eligible for a Social Security Number (SSN). This includes non-resident aliens, resident aliens, and their dependents who are not eligible for an SSN. ITINs are nine-digit numbers that begin with the number 9 and are formatted like SSNs.

• Issued by the IRS
• For individuals not eligible for an SSN
• Nine-digit number starting with 9

TIN Overview

TIN, on the other hand, is a broader term that encompasses various types of taxpayer identification numbers, including ITINs, SSNs, and Employer Identification Numbers (EINs). TINs are used by individuals, businesses, and other entities to report income and pay taxes to the IRS. While ITINs are a specific type of TIN, the term TIN is often used more generally to refer to any taxpayer identification number.

• Includes ITINs, SSNs, and EINs
• Used by individuals, businesses, and entities
• General term for taxpayer identification numbers

Application Process

The application process for obtaining an ITIN is different from that of obtaining a TIN. To apply for an ITIN, individuals must complete Form W-7 and submit it to the IRS along with supporting documentation, such as a valid passport or other identification documents. The IRS will review the application and, if approved, issue an ITIN to the individual.

On the other hand, obtaining a TIN can vary depending on the type of TIN being applied for. For example, individuals can apply for an SSN through the Social Security Administration, while businesses can apply for an EIN through the IRS. The application process for each type of TIN may require different forms and documentation.

Usage

ITINs are primarily used for tax reporting purposes, such as filing tax returns, claiming dependents, and receiving tax refunds. Individuals who have an ITIN may also use it for other purposes, such as opening a bank account or applying for a mortgage. However, ITINs are not intended to serve as a form of identification for employment or other purposes.

TINs, on the other hand, are used for a variety of purposes beyond tax reporting. For example, businesses use EINs to report income and pay taxes, while individuals use SSNs for employment, benefits, and other purposes. TINs are often required when opening a bank account, applying for a loan, or completing other financial transactions.

Renewal and Expiration

ITINs do not expire, but they may become inactive if they are not used on a federal tax return for three consecutive years. Inactive ITINs can still be used to file tax returns, but they may not be accepted by financial institutions or other entities for identification purposes. To reactivate an inactive ITIN, individuals must file a federal tax return using the ITIN.

On the other hand, SSNs and EINs do not expire and remain valid for the lifetime of the individual or business. However, individuals may need to update their SSN if their name changes due to marriage or divorce, while businesses may need to update their EIN if there are changes to their ownership or structure. Keeping TIN information up to date is important for tax reporting and other purposes.

Conclusion

In conclusion, ITIN and TIN are both important taxpayer identification numbers that serve different purposes and are used by different individuals and entities. While ITINs are specific to individuals who are not eligible for an SSN, TINs encompass a broader range of taxpayer identification numbers used for various purposes. Understanding the differences between ITIN and TIN can help individuals and businesses navigate the tax system and ensure compliance with IRS requirements.