A taxpayer ID number comes in several different forms, from a Social Security Number to
an Employer ID Number (EIN) and now, with the increasing influx of immigration
into the United States, something called an Individual Tax Identification
Number (ITIN). It’s important to understand the difference between these
numbers and what they are needed to accomplish.
In a Word, Yes
According to the IRS, an ITIN number is not valid for demonstrating
eligibility for employment within the United States. Rather, it is only used
for identifying nonresident or resident aliens for tax reasons, and they are
used for immigrants who are not eligible to obtain a Social Security Number or
to work inside the U.S. Employers should not hire workers without an SSN; it’s
important to understand that an ITIN does not
take its place for the purposes of employment.
What’s the Difference?
A Social Security Number (SSN) is different from an ITIN for many
reasons. First, a Social Security Number can only be attained by U.S. citizens,
who reside and are eligible to hold employment within the country. This number
is used for many different ID requirements, but filing federal tax returns is
certainly one of them, and so is demonstrating eligibility for work. In fact,
employers should be sure to have a copy of all employees’ social security cards
on file for their records.
An ITIN or Individual Tax Identification
Number, on the other hand, is assigned to resident and nonresident aliens who,
for some reason, need to be implicated on a federal U.S. tax return but are not
able to acquire an SSN or hold employment in the U.S. This is a number used
solely for tax purposes, and does not indicate any other type of proper
identification.
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