Summary of Federal Laws
Tax
Tax Issues Related to Employment
Taxpayer Identifying Numbers and Requirements to Furnish to the IRS
26 U.S.C. § 6109; 26 C.F.R. §301.6109-1
There are several types of taxpayer identifying numbers (TINs) that include the following:
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social security numbers (SSNs);
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individual taxpayer identification numbers (ITINs);
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adoption taxpayer identification numbers (ATINs);
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and employer identification numbers (EINs).
SSNs take the form 000-00-0000. ITINs and ATINs take the same form, 000-00-0000, but include a specific number or numbers designated by the IRS. EINs take the form 00-0000000.
SSNs, ITINs, and ATINs are used to identify individual persons. EINs are used to identify employers. For the definition of SSN and EIN, see 26 C.F.R. §§ 301.7701-11 and 301.7701-12, respectively. For the definition of ITIN, see 26 C.F.R. § 301.6109-1(d)(3).
With a few minor exceptions, an individual who is required to file a TIN must use a SSN. An individual who is required to furnish a TIN, but who is not eligible to obtain a SSN, must use an ITIN or an ATIN. An ITIN is generally identified in the records and database of the IRS as a number belonging to a nonresident alien individual. An ATIN is a temporary TIN assigned to child placed for adoption. An entity other than an individual (corporations, partnerships, nonprofit associations, trusts, estates, and similar non-individual persons) that is required to file a TIN, must use an EIN.
Requirement to Furnish One's Own Number
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Every U.S. person who files a return, statement, or other document under the tax code must furnish a TIN as required by the forms and the accompanying instructions. A U.S. person whose TIN must be included on a document filed by another person must give the TIN so required to the other person on request.
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The following foreign persons must furnish TINs:
(i) a foreign person who has income effectively connected with the conduct of a U.S. trade or business at any time during the taxable year;
(ii) a foreign person who has a U.S. office or place of business or a U.S. fiscal or paying agent at any time during the taxable year;
(iii) a nonresident alien treated married to a U.S. citizen or resident and filing a joint return;
(iv) a foreign person who files a tax return that involves payment of taxes or a refund claim;
(v) a foreign person making an express election under the code to be classified as a partnership or association; and
(vi) a foreign person who furnishes a withholding certificate. (See 26 CFR § 1.1441-1 et seq.)
Requirement to Furnish Another’s Number
Effective January 1, 2001. Every person required under the code to file a return, statement, or other document, must furnish such TINs of other U.S. persons and foreign persons that are described above. If the person making the return, statement, or other document does not know the TIN of the other person, such person must request the other person's TIN. The request should state that the TIN is required to be furnished under authority of law. When the person making the return, statement, or other document does not know the TIN of the other person, and has complied with the request provision, such person must sign an affidavit on the transmittal document forwarding such returns, statements, or other documents to the IRS, so stating. A person required to file a TIN shall correct any errors in such filing when such person's attention has been drawn to them.
See also Tuition Payment Credit Reporting Requirements.
Changes in the ITIN application process:
In December of 2003, the IRS announced several steps to strengthen controls over the issuance of Individual Taxpayer Identification Numbers. The changes will help ensure that ITINs are issued for their intended tax administration purpose for administering the tax code and not for other reasons, such as providing personal identification. In addition, the IRS is taking steps to help ensure that applicants can continue to obtain ITINs without undue burden. Beginning December 17, 2003 new ITIN applicants must use a revised Form W-7, Individual Taxpayer Identification Number Application. ITIN applicants also must provide proof that the ITIN will be used for tax administration purposes. For applicants seeking an ITIN in order to file a tax return, the return must be filed along with the W-7. For more see Information Release 2003-140 below.
Social Security Numbers and Foreign Nationals: A resource page from The Catholic University of America International Student and Scholar Services Office
Social Security Numbers have become a key element many aspects of life in the U.S. Recent developments restrict the availability of Social Security Numbers for foreign nationals. This page provides resource documents for understanding the role of SSNs in various parts of U.S. business/society.
CFR updated 11/17/08 RAB
compliance partner added 5/17/09 and links updated mlo
Last Revised 17-May-09 03:10 PM.
