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League City Texas Form 433-B (OIC): What You Should Know
Taxpayer Identification Number (TIN) and Payroll Expense Number (PEN) — IRS TIN is your taxpayer identification number. You have to report your taxpayer identification number to the IRS when you file a tax return. The IRS accepts the following forms for the purpose of obtaining your taxpayer identification number (TIN) and a valid payroll expense number (PEN). Please note that tax identification numbers (TIN) have been assigned to all taxpayers to enable the IRS to perform background investigative interviews in order to identify taxpayers who file false income tax returns or pay tax at a rate higher than is prescribed for tax-filing taxpayer groups. Therefore, taxpayers may not be aware that they will need to list their Social Security number (SSN) as the taxpayer identification number. SCHEDULE 1 (TIN Filing Instructions), IRS and SSA This is a Schedule 1 (Schedule of Fees and Charges) for the tax year, and it includes the tax return filing expenses. The IRS needs to know what expenses you paid with a TIN. SCHEDULE 2 (TIN-Filing Requirements) — IRS and SSA This is a Schedule 2 (Schedule of Fees and Charges) for the tax year. This is also a TIN filing requirement. PEN — Payroll Expense Number (PEN) — IRS PEN is the taxpayer identification number. It allows the IRS to identify individuals who claim an exemption from paying taxes on certain types of receipts. The SSN is the taxpayer's taxpayer identification number. It allows the IRS to identify people who file false tax returns or pay tax at a rate higher than is prescribed as a tax-filing taxpayer group. If your business does not have a TIN to obtain a PEN, it is not required to report all of your payroll business expenses. If it has a PEN and if you paid those expenses with an original or duplicate TIN (excluding employee social security benefits), you are entitled to the PEN for the same tax year. Please note that PEN only applies to certain types of receipts. Form 433-B (OIC) (Rev. 4-2022), IRS Once we complete this section, you may be asked to present proof of income you received to verify your tax situation.
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