The Internal Revenue Service (IRS) rules and regulations require all merchants to provide third party processors and credit card processors with a Tax Identification Number (TIN). The TIN aims to make tax reporting for payments taken in credit cards much easier and smoother.
If you are a sole proprietor, your business income is taxed as part of your personal income. However, other types of business entities require profits and losses of the business to be reported in a different way. Reporting the correct TIN on your application can help ensure that your income is taxed correctly and can help you avoid overpaying.
What is a TIN anyway?
In simple terms, a Tax Identification Number (TIN) is a 9-digit number that the IRS issues to identify your business. Depending on your business structure or how you communicate with the IRS, your TIN can be found in one of several forms.
For an ****individual business owner, or sole proprietor, the TIN can take the form of an SSN.
For other types of ownership, a TIN or Employee Identification Number (EIN) is assigned depending on the structure of the business. You can learn more about the TIN and what best fits the structure of your business from the IRS website.
I provided my SSN, why do I need to provide my TIN?
Part of GoSite’s Payments Tool Application process is the Know Your Customer (KYC) Compliance which requires customers to verify their identities. The SSN is required to verify the identity of the owner, while the TIN is required to verify the identity of the business as a taxable entity.
What Type of Ownership requires a TIN or EIN to apply?
The following Types of Ownership require a TIN or EIN:
Limited Liability Company (LLC)
Private Corporation (includes all types of business ownership that have stocks held by a small group of individuals such as C Corporations and S Corporations).
Public Corporation (typically a corporation that publicly issues shares of stock).
If you are a sole proprietor, you will not be asked to provide a TIN or EIN.
How do I find my TIN?
Check your EIN confirmation letter or SS-4.
When you complete the registration for a TIN, the IRS will provide you with an SS-4 letter of confirmation. If you applied online, they will send this form and your TIN/EIN to the email address you provided. ****If you submitted your application via fax or mail, you will receive the SS-4 document via fax or mail.
Check other documents that may have your TIN/EIN recorded.
If you can’t locate your confirmation letter, look for other documents that may have required you to provide a TIN.
Here's a list documents that may contain your TIN :
old business tax documents
business bank account statements or forms
old loan applications
Contact the IRS.
If you’ve looked everywhere and still can’t find your TIN, you can report it to the IRS as lost or missing. You can find instructions on their website on how to do that.
What if I just apply with my SSN?
Your application will not submit successfully if you only provide your SSN in place of your TIN, unless you are a sole proprietor.
Please note that it's important to be honest about the Type of Ownership of your business. Changing your ownership on the application to bypass the TIN may cause your application to get declined.