A federal tax identification number is the taxpayer number a business, and in some cases a household, puts on a federal return and on information forms. The agency uses it to match the form to the taxpayer who filed it.
For a business, that number is the Employment Identification Number (EIN). The business applies for it once and then prints it on returns, wage forms, and bank records that ask for the federal taxpayer number.
Where the Number Is Printed
- The income return. The number identifies the filer at the top of the return.
- Wage and payment forms. Forms that report wages or other payments carry the payer’s number so the agency can match them.
- A bank or a vendor. Either may ask for the number before paying the business or opening an account.
Business Number and a Person’s Own Number
| Compared | Business Taxpayer Number | A Person’s Own Number |
| Who it names | The business | One person |
| Where it is used | Business returns, wage forms, and vendor forms | The person’s own return |
| How it is obtained | The business applies to the tax agency | Issued to the person, not to the firm |