Understanding your IRS filing status is a very important step in preparing for your future. You may not be aware of this but you are always running the risk of being audited by the Internal Revenue Service even before the audit actually takes place. This is due to the fact that the majority of taxpayers will be unaware of their filing status until it actually happens. As such, it is very important that you understand your filing status as this will help you prepare and organize yourself when it is time to answer any IRS questions that may arise during the course of the audit.
There are a few different things that you need to understand when it comes to understanding your IRS filing status. First, you need to understand that there are two types of individuals that actually file their taxes with the IRS. The first category of taxpayers include those individuals who have Social Security numbers. Those individuals will typically receive one EIN, which stands for an Employer Identification Number. However, they will also receive a social security number, and a wage amount, which is what the Internal Revenue Service uses to calculate the taxable income that they owe. In short, if you have a SSN and you have a social security number then you are considered an individual that files with the IRS.
The second category of taxpayers that need to understand their IRS filing status are individuals who do not have a SSN. These individuals may not have a social security number. In some cases, they may only have an EIN. If you fall into either of these categories, then you need to understand that you can still file with the IRS by proving that you have proof of your monthly income. Here is a quick checklist that will help you quickly understand your IRS filing status.