Publication 583 |
2001 Tax Year |
Identification Numbers
You must have a taxpayer identification number so that the IRS can
process your returns. The two most common kinds of taxpayer
identification numbers are the social security number (SSN) and the
employer identification number (EIN).
- An SSN is issued to individuals by the Social Security
Administration (SSA) and is in the following format:
000-00-0000.
- An EIN is issued to individuals (sole proprietors),
partnerships, corporations, and other entities by the IRS and is in
the following format: 00-0000000.
You must include your taxpayer identification number (SSN or EIN)
on all returns or other documents you send to the IRS. You must also
furnish your number to other persons who use your identification
number on any returns or documents they send to the IRS. This includes
returns or documents they file to report:
- Interest, dividends, royalties, etc., paid to you,
- Any amount paid to you as a dependent care provider,
and
- Certain other amounts paid to you that total $600 or more
for the year.
If you do not furnish your identification number as required, you
may be subject to penalties. See Penalties, later.
Employer Identification Number (EIN)
EINs are used to identify the tax accounts of employers, certain
sole proprietors, corporations, partnerships, estates, trusts, and
other entities.
If you don't already have an EIN, you need to get one if you:
- Have employees,
- Have a qualified retirement plan,
- Operate your business as a corporation or partnership,
or
- File returns for:
- Employment taxes,
- Excise taxes, or
- Alcohol, tobacco, or firearms taxes.
How to get an EIN.
You can get an EIN either through the mail or by telephone. But
first you must fill out Form SS-4,
Application for Employer
Identification Number. You can get Form SS-4 at SSA
offices or by calling the IRS at
1-800-829-3676. It is also available from
the IRS web site at www.irs.gov.
When to apply.
You should apply for an EIN early enough to receive the number by
the time you must file a return or statement or make a tax deposit. If
you apply by telephone, you can get an EIN immediately. If you apply
by mail, file Form SS-4 at least 4 to 5 weeks before you need an
EIN.
If you do not receive your EIN by the time a return is due, file
your return anyway. Write "Applied for" and the date you applied
for the number in the space for the EIN.
More than one EIN.
You should have only one EIN. If you have more than one EIN and are
not sure which to use, contact the Internal Revenue Service Center
where you file your return. Give the numbers you have, the name and
address to which each was assigned, and the address of your main place
of business. The IRS will tell you which number to use.
More information.
For more information about EINs, see Publication 1635,
Understanding Your EIN.
Payee's Identification Number
In the operation of a business, you will probably make certain
payments you must report on information returns (discussed later under
Information Returns). The forms used to report these
payments must include the payee's identification number.
Employee.
If you have employees, you must get an SSN from each of them.
Record the name and SSN of each employee exactly as they are shown on
the employee's social security card. If the employee's name is not
correct as shown on the card, the employee should request a new card
from the SSA. This may occur, for example, if the employee's name has
changed due to marriage or divorce.
If your employee does not have an SSN, he or she should file Form
SS-5, Application for a Social Security Card, with
the SSA. This form is available at SSA offices or by calling
1-800-772-1213. It is also available from
the SSA web site at www.ssa.gov.
Other payee.
If you make payments to someone who is not your employee and you
must report the payments on an information return, get that person's
SSN. If you make reportable payments to an organization, such as a
corporation or partnership, you must get its EIN.
To get the payee's SSN or EIN, use Form W-9,
Request for Taxpayer
Identification Number and Certification. This form is available
from IRS offices or by calling 1-800-829-3676.
It is also available from the IRS web site at www.irs.gov.
If the payee does not provide you with an identification number,
you may have to withhold 31% of the payments as backup withholding.
For information on backup withholding, see the Form W-9
instructions and the General Instructions for Forms 1099, 1098,
5498, and W-2G.
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