Is a US Tax ID Request Legit? How to Tell
Unsure about a US Tax ID request? Learn to verify its legitimacy, recognize scams, and understand when and how to get one.
US Tax IDs are real and necessary for various financial and legal dealings within the United States. This article clarifies what US Tax IDs are, when they are legitimately requested, how to identify fraudulent requests, and the process for obtaining one.
Understanding US Tax IDs
A Taxpayer Identification Number (TIN) is a unique nine-digit number used by the Internal Revenue Service (IRS) to identify taxpayers and administer tax laws. These numbers are issued either by the Social Security Administration (SSA) or the IRS. There are several specific types of Tax IDs, each with a distinct purpose.
The most common types include the Social Security Number (SSN), the Employer Identification Number (EIN), and the Individual Taxpayer Identification Number (ITIN). An SSN is issued by the SSA for individuals, including U.S. citizens, permanent residents, and authorized non-citizens. The EIN is issued by the IRS to businesses and other entities. An ITIN is issued by the IRS to individuals who need a U.S. taxpayer identification number but are not eligible for an SSN.
Legitimate Reasons for Requesting a US Tax ID
US Tax IDs are legitimately requested in numerous scenarios. For businesses, an Employer Identification Number (EIN) is typically required when starting a new business entity, hiring employees, opening a business bank account, or filing business tax returns. It is essential for payroll taxes and other business-related tax obligations.
Individuals often need a Social Security Number (SSN) for employment purposes. An SSN is also necessary for opening personal bank accounts, applying for loans, receiving government benefits, and filing individual income tax returns. For non-citizens not eligible for an SSN, an Individual Taxpayer Identification Number (ITIN) is required to file federal income tax returns and claim certain tax treaty benefits. Requests for these IDs generally come from official sources such as government agencies, employers, or financial institutions.
Identifying Fraudulent Requests
Recognizing fraudulent requests for a US Tax ID protects personal and financial information. The Internal Revenue Service (IRS) will generally initiate contact regarding tax matters via official mail, not through unsolicited phone calls, emails, or text messages. Be cautious of any communication claiming to be from the IRS that demands immediate payment, threatens arrest, deportation, or legal action for non-compliance.
Scammers often pressure individuals to make payments using unusual methods, such as gift cards, wire transfers, or cryptocurrency, which are red flags. Requests for excessive or seemingly unnecessary personal information beyond what is typically required for a transaction should also raise suspicion. If you receive a suspicious request, independently verify the requester’s identity by contacting the official IRS phone number (1-800-829-1040), rather than using contact information provided in the suspicious communication.
Obtaining a US Tax ID
Obtaining a US Tax ID depends on the type of identification needed. For an Employer Identification Number (EIN), businesses can apply online through the IRS website. This online application is typically free and provides the EIN immediately upon successful completion. Alternatively, Form SS-4 can be faxed or mailed to the IRS, though these methods may take longer to process.
Individuals seeking a Social Security Number (SSN) must apply through the Social Security Administration (SSA). This involves completing Form SS-5, Application for a Social Security Card, and providing original documents to prove identity, age, and U.S. citizenship or lawful alien status. Most first-time SSN applicants are required to apply in person at an SSA office and may need to schedule an appointment. For an Individual Taxpayer Identification Number (ITIN), individuals must complete Form W-7, Application for IRS Individual Taxpayer Identification Number, and submit it along with their federal income tax return and original supporting documentation proving identity and foreign status. ITIN applications can be mailed to the IRS, submitted through an IRS-authorized Certifying Acceptance Agent, or at an IRS Taxpayer Assistance Center.