Federal ID Number (or FIN)
What is a Federal Tax Identification Number?
A Federal Tax Identification Number, sometimes referred to by the acronym FIN, is used by the United States Internal Revenue Service (IRS) to identify a business entity for tax purposes. Federal Tax Identification Numbers are more commonly called Employer Identification Numbers (EIN).
How is a FIN like a Social Security Number?
A Federal Tax Identification Number is issued to all incorporated businesses in the United States, making it analogous to the Social Security Number (SSN) for individuals. Like a SSN, a FIN consists of nine digits, but unlike Social Security Numbers a FIN is grouped into two groups of numbers (XX-XXXXXXX) rather than three (XXX-XX-XXX).
FINs can be used to track a business’ credit worthiness just as SSNs can be used to track an individual’s credit worthiness. For this reason, FINs should be guarded just as SSNs because they can be used for “business identity theft.”
What else are Federal Tax Identification Numbers used for?
Certain businesses that offer services to other businesses may require the FIN to verify that the business exists. This is most common for businesses that have personal and corporate clients such as warehouse stores.