A Tax Identification Number (TIN) is a unique identifier assigned to individuals and businesses for tax purposes. It is used by government tax authorities, like the Internal Revenue Service (IRS) in the United States, to track tax obligations and compliance, ensuring that entities report and pay taxes accurately.
For individuals, a TIN can be a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) for those who do not qualify for an SSN. For businesses, it typically involves an Employer Identification Number (EIN). These numbers are crucial for tax reporting, filing returns, and conducting various financial activities, such as opening a bank account or applying for a business license. Each type of TIN serves to identify different kinds of taxpayers and helps streamline tax administration and reporting.
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