Tax Identification Numbers in Minnesota: Everything You Should Know

 

 

The Minnesota Department of Revenue issues tax identification numbers to individuals and businesses. These numbers are used to identify taxpayers and help determine how much income taxes must be paid. A taxpayer’s name, address, Social Security number, employer information, and filing status are required to receive a tax identification number.

A taxpayer’s tax identification number is important because it helps the state collect revenue owed to the government. For example, the department uses the tax identification number to match sales tax returns submitted by retailers with the appropriate customers. If a retailer does not report a sale, the department cannot issue a refund to the customer.

If you start a new business, you should apply for a new tax identification number. You can do this online or by calling 866-842-2137.

Federal Employer Identification Number

The IRS requires employers to file Form SS-4, Application for Employer Identification Number, every three years. This form provides information about the employer’s name, address, phone number, fax number, email address, and social security number. The employer must include his/her Federal Taxpayer Identification Number (EIN), which is used to identify the taxpayer.

If the employer uses an employee identification number (EIN) instead of his/her Social Security Number, it is called a “FEIN.” A sole proprietorship may use its Social Security Number as its FEIN. If the owner of a corporation files Form SS-4, he/she must provide the corporate EIN. An individual filing Form SS-4 must provide both his/her personal and business Social Security Numbers.

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An independent contractor performing work for another person is treated as an employee. Therefore, the person hiring the independent contractor must report the worker’s income and withhold federal payroll taxes.

Filing taxes electronically saves paper, postage, and printing costs. Electronic filing allows the government to process returns more quickly. However, electronic filing is not guaranteed to save money because some taxpayers choose to mail their returns rather than pay the $100 fee required to file.

Faxing or mailing your tax returns does not mean receiving faster service. Some people prefer to wait for their refunds by sending in paper returns. Others choose to send in their returns via fax or snail mail.

MN Personal Tax ID

According to the Minnesota Department of Revenue, a business must obtain a Minnesota Tax Identification Number if it sells goods or provides services, has employees, earns gross receipts over $50K annually, or owes use tax.

To register your business, you must obtain an Employer Identification Number if you are self employed or a Federal Tax ID Number if you work for someone.

You can apply for a Minnesota Business Tax Identification Number online through our department.

A taxpayer identification number (Tin) is an important part in filing taxes. An individual who works for an incorporated business needs a Tin before he/she files her personal income tax return. Businesses need a Tin before they file their Corporate Income Tax Return.

 

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Minnesota Unemployment Insurance Employer Account Number

The Minnesota Department of Employment and Economic Development (DEED) announced today that it would begin issuing a unique employer identification number (EIN) for employers participating in the state’s Unemployment Insurance Program beginning January 1, 2020. This change will allow businesses to receive payments electronically using the same EIN used to file tax returns.

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Businesses are required to obtain an EIN to participate in the unemployment insurance program. An EIN allows employers to access online payment systems such as QuickPay and helps ensure that payments are properly credited to eligible accounts.

This change does not affect employers who already have an EIN assigned to them.

What’s the Difference?

A Minnesota Sales Tax Permit is required for businesses selling taxable items. In addition to the sales tax permit, there are three types of permits. These are:

1. An Employee Identification Number – This type of permit is used for employers who pay income taxes.

2. An Employer Identification Number – This type is used for employers who do not pay income taxes.

3. A Business License – This type of permit must be obtained in order to sell tangible personal property.

The difference between the three permits is crucial because it determines what you need to file with the Department of Revenue.

 

 

Frequently Asked Questions

What is an EIN Number?

An Employer Identification Number (EIN) is a unique identifier that businesses use to file their taxes. It’s also used for other purposes, such as registering with the IRS and obtaining loans from banks.

Who needs an EIN?

If you are a business owner, you may be wondering if you need to have an Employer Identification Number (EIN). The answer is yes. You do need ,one and it’s not as hard as you might think.

How much does it cost to get an EIN in Minnesota?

The fee for the application is $75.00, and you are required to pay a filing fee of $25.00. The total amount due is $100.00. If you do not have the money, you can apply for a loan from your bank or credit union. You will be charged interest on any loans taken out.

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