If you’re starting a new business, filing your taxes, or looking to change your tax status, you might need to get a new tax number. A tax number, also known as a Taxpayer Identification Number (TIN), is a critical part of your financial and legal identification. Whether you’re an individual or a business, this number plays a vital role in the way taxes are reported and paid.
In this guide, we’ll explain what a new tax number is, why you might need one, and how to go about obtaining it. Whether you’re navigating tax filing for the first time or need a new number for your business, this article will walk you through the entire process in an easy-to-understand way.
What is a New Tax Number (TIN)?
A Taxpayer Identification Number (TIN) is a unique identification number assigned to individuals and businesses for tax purposes. This number is essential for filing tax returns, paying taxes, and receiving government benefits. The TIN helps the Internal Revenue Service (IRS) track your financial transactions and tax obligations.
There are different types of TINs that apply to different situations:
- Social Security Number (SSN) – Assigned to individuals.
- Employer Identification Number (EIN) – Issued to businesses.
- Individual Taxpayer Identification Number (ITIN) – Given to individuals who aren’t eligible for an SSN, usually non-resident aliens.
- Adoption Taxpayer Identification Number (ATIN) – Issued for children in the adoption process.
Understanding which tax number you need depends on your specific situation, whether you’re an individual taxpayer or a business owner.
Why Do You Need a New Tax Number?
There are several situations in which you may need a new tax number. Some of the most common reasons include:
1. Starting a Business
If you’re starting a business, the IRS will require you to obtain an Employer Identification Number (EIN). This number identifies your business entity for tax reporting purposes. Without an EIN, your business won’t be able to hire employees or open a business bank account.
2. Changing Business Structure
If you’ve recently changed your business structure—such as converting from a sole proprietorship to a partnership or a corporation—you’ll need to apply for a new EIN. Your business’s tax classification can affect how it’s taxed and the forms it needs to file, which is why the IRS requires a new number.
3. Loss of or Issues with Your Previous Tax Number
If your tax number has been compromised or you’re having issues with it—such as identity theft or reporting mistakes—you may need to apply for a new tax number to prevent further complications.
4. Non-Residents Filing Taxes
If you’re a non-resident alien in the U.S., you’ll need an Individual Taxpayer Identification Number (ITIN) to file your taxes. This number allows you to comply with U.S. tax laws, even if you aren’t eligible for a Social Security number.
5. Adoption or Guardianship
When adopting a child, parents or guardians might need to apply for an Adoption Taxpayer Identification Number (ATIN) to include the child in their tax filings.
How to Apply for a New Tax Number
The process of obtaining a new tax number depends on the type of number you need. Here’s a breakdown of the steps to apply for the most common types of tax numbers:
1. Applying for a Social Security Number (SSN)
If you’re a U.S. citizen or permanent resident, you likely already have an SSN. However, if you need to apply for one for a child or other family member, here’s how:
- Complete the Form SS-5: This is the application form for an SSN, available on the Social Security Administration (SSA) website.
- Provide Documentation: You’ll need to provide proof of identity, such as a birth certificate or passport.
- Submit the Application: You can submit the application at your local SSA office or mail the completed form with the required documents.
For more detailed instructions, you can visit the SSA’s website or refer to this link.
2. Applying for an Employer Identification Number (EIN)
For businesses, an EIN is a must. Fortunately, applying for an EIN is simple and can be done online:
- Complete the EIN Application: Go to the IRS website and fill out the Online EIN Application form. This is available for businesses in the U.S.
- Submit the Application: Once the form is filled out, submit it online, and you will receive your EIN immediately after completing the process. You can also apply by fax or mail, but online application is the quickest.
The IRS also provides a detailed guide on how to apply for an EIN on their website. You can access the EIN application page here.
3. Applying for an Individual Taxpayer Identification Number (ITIN)
An ITIN is essential for non-resident aliens or those ineligible for a Social Security Number to file their taxes. To apply:
- Complete Form W-7: This form is used to apply for an ITIN. It is available on the IRS website.
- Submit Proof of Identity: Along with the form, you’ll need to provide documents proving your identity, such as a passport or national identification card.
- Mail the Application: Send the form and documents to the IRS address provided on the form. It can take several weeks for the IRS to process your application.
You can visit the IRS website for more information and instructions on applying for an ITIN. Check the ITIN page here.
4. Applying for an Adoption Taxpayer Identification Number (ATIN)
If you’re in the process of adopting a child, you may need to apply for an ATIN:
- Complete Form W-7A: This form is specifically for applying for an ATIN.
- Provide Documentation: Submit the form along with any required documentation related to the adoption.
- Mail the Application: After completing the form and gathering the documents, mail them to the IRS for processing.
For more details, visit the IRS ATIN page here.
When to Apply for a New Tax Number
Knowing when to apply for a new tax number is crucial for staying in compliance with tax laws. Here are some key moments when you might need a new tax number:
- When you start a new business and need an EIN.
- If your business structure changes, and you need a new EIN.
- If your identity is stolen or you suspect fraud involving your SSN or EIN.
- When you adopt a child, and need an ATIN for tax purposes.
- If you are a non-resident and need an ITIN for tax filings.
Frequently Asked Questions (FAQ)
1. Do I need a new tax number if I move to a different state?
No, changing states does not require you to get a new tax number. Your SSN or EIN remains valid across all states. However, you may need to update your address with the IRS or the relevant state tax authority.
2. How long does it take to get a new EIN?
When applying online, you can receive your EIN immediately. However, if you apply by fax or mail, it may take up to 4-6 weeks for the IRS to process your request.
3. Can I use my SSN for my business?
If you are a sole proprietor with no employees, you may be able to use your SSN for your business. However, obtaining an EIN is recommended, especially if you plan to hire employees or form a corporation.
4. What should I do if I lose my EIN or SSN?
If you lose your EIN, you can retrieve it through the IRS or your records. If you lose your SSN, contact the Social Security Administration to request a replacement card or verify your number.
5. How do I check if my ITIN is still valid?
The IRS provides a tool to check the status of your ITIN. If your ITIN is expired or invalid, you may need to apply for a renewal.
Conclusion
A new tax number is essential for many individuals and businesses for proper tax reporting and compliance. Whether you need an EIN for your new business, an ITIN for tax filing, or a SSN for personal use, obtaining the right tax number is key to smooth financial operations.
For more detailed information on tax numbers and related topics, visit Tax Laws in USA, where we provide resources to help you navigate the world of taxes and financial planning.