What is a TIN?: A Taxpayer Identification Number (TIN) is an identifying number used for tax purposes in the United States. It is also known as a Tax Identification Number or Federal Taxpayer Identification Number. A TIN may be assigned by the Social Security Administration or by the Internal Revenue Service (IRS).
Why do we assign TINs if we have SSNs?: In 1996, the IRS, in camera, resolved a huge issue: what to do with the millions of potential taxpayers from whom they dearly wished to collect income tax but could not verify their SSNs? Whether here illegally or foreign workers without proper work permission identification, etc… the powers that be within the agency promptly invented and authorized use of TINs. Taxpayer Identification Numbers. TINs look like SSNs (9 digits in an NNN-NN-NNN format), few people know the difference (and criteria for assignment/appropriation) and even fewer know of their existence. (Except for those every delightfully slithery federal contractors!) A TIN is issued to an employer who can then substitutes said TIN on requisite tax filings for a worker ineligible (why….?) for an SSN.
Can TIN abuse occur? Despite a past investigation in 2012 by the IG (Treasury Inspector General for Tax Administration)- on the multiple assignment by said contractors of a single TIN, the IRS declined to make any changes and stated that further analysis is needed. By next year, it is predicted that at least $2 billion of taxpayer dues will be lost along these TIN abuse lines – in just that year.
TIN Trivia Fact: A TIN’s middle numbers are always, at least currently, between 70 and 80.)
The IRS will always find a way to demand and protract taxes.
BNI Operatives: Situationally aware.
As always, stay safe.