Taxpayer Identification Numbers (TIN) for EA Exam

What is a TIN?

A Taxpayer Identification Number (TIN) is used by the IRS for tax administration, issued by the Social Security Administration (SSA) or IRS.

• Types: SSN, EIN, ITIN, ATIN, PTIN.
• Purpose: Required for tax returns, statements, withholding certificates, and claiming treaty benefits or exemptions.

Types of TINs

1. Social Security Number (SSN):
   • Issued by SSA for U.S. citizens and eligible aliens.
   • Used for tax filing, employment, and benefits (e.g., Earned Income Tax Credit).
2. Employer Identification Number (EIN):
   • Issued by IRS for businesses, estates, and trusts.
   • Used for Form 1041 (U.S. Income Tax Return for Estates and Trusts) and tax treaty exemptions (via Form W-8BEN).
3. Individual Taxpayer Identification Number (ITIN):
   • 9-digit number (starts with 9, formatted NNN-NN-NNNN) for nonresident/resident aliens, spouses, or dependents ineligible for SSN.
   • Used for tax filing and certain credits (not EITC).
4. Adoption Taxpayer Identification Number (ATIN):
   • Temporary 9-digit number for U.S. citizen/resident children in pending adoptions when SSN is unavailable.
   • Used for dependency exemptions and Child and Dependent Care Credit.
5. Preparer Tax Identification Number (PTIN):
   • Required for paid tax preparers since January 1, 2011, for filing federal returns or refund claims.

When is a TIN Required?

• Filing tax returns or statements.
• Claiming tax treaty benefits.
• Withholding certificates for:
  • Tax treaty benefits (except marketable securities).
  • Exemption for effectively connected income.
  • Exemption for certain annuities.

How to Obtain a TIN

Social Security Number (SSN)

• Form: SS-5 (Application for a Social Security Card).
• Requirements: Evidence of identity, age, and U.S. citizenship or lawful alien status.
• Submission: Mail, call 800-772-1213, or visit a local SSA office (free service).

Employer Identification Number (EIN)

• Form: SS-4 (Application for Employer Identification Number).
• Purpose: For businesses, estates, trusts, or foreign entities claiming treaty exemptions.
• Special Instructions for Foreign Entities:
  • Write “N/A” for SSN/ITIN on line 7b if none exists.
  • Check “other” on question 10 and specify: “For W-8BEN Purposes Only,” “For Tax Treaty Purposes Only,” “Required under Reg. 1.1441-1(e)(4)(viii),” or “897(i) Election.”
  • Annotate questions 11–17 as “N/A” if no U.S. filing requirement.
  • Contact 267-941-1099 (not toll-free) to expedite.
• Note: Respond to IRS letters soliciting U.S. tax returns if no filing requirement exists to avoid procedural assessments.

Individual Taxpayer Identification Number (ITIN)

• Form: W-7 (Application for IRS Individual Taxpayer Identification Number).
• Requirements:
  • Federal tax return (unless meeting an exception).
  • Documentation of foreign/alien status and identity.
• Submission: Mail to IRS (per Form W-7 instructions), present at IRS walk-in offices, or use an Acceptance Agent.
• Note: Cannot claim Earned Income Tax Credit (EITC) with ITIN.

Adoption Taxpayer Identification Number (ATIN)

• Form: W-7A (Application for Taxpayer Identification Number for Pending U.S. Adoptions).
• Purpose: For U.S. citizen/resident children in pending adoptions when SSN is unavailable.
• Restriction: Not for non-U.S. citizen/resident children.

Preparer Tax Identification Number (PTIN)

• Requirement: Mandatory for paid tax preparers since January 1, 2011.
• Application:
  • Online via IRS sign-up system.
  • Form W-12 (paper application, 4-6 weeks processing).
• Note: Foreign preparers without an SSN follow specific instructions (see IRS FAQ for tax preparers).

Key Forms and Publications

• Form SS-5: SSN application.
• Form SS-4: EIN application.
• Form W-7: ITIN application.
• Form W-7A: ATIN application.
• Form W-12: PTIN application.
• Publication 1915: Understanding Your ITIN.

Exam Tips

• Focus Areas:
  • Distinguish between TIN types (SSN, EIN, ITIN, ATIN, PTIN) and their purposes.
  • Understand application processes and required forms.
  • Know when a TIN is required (e.g., tax returns, treaty benefits, withholding).
  • Memorize limitations (e.g., ITIN/ATIN cannot be used for EITC).
• Common Questions:
  • Eligibility for SSN vs. ITIN vs. ATIN.
  • Application procedures for each TIN type.
  • Tax benefits and exemptions requiring a TIN.
  • Special rules for foreign entities applying for EIN.
• Key Notes:
  • Use IRS Interactive Tax Assistant to determine ITIN eligibility.
  • Foreign entities must clarify no U.S. filing requirement on Form SS-4 to avoid IRS assessments.