How To Get a Tax Id Number

How do you get an EIN?

It is easy to apply for an EIN. The application process only takes minutes online using the IRS website. It is also possible to mail Form SS-4 to the Internal Revenue Service. It is recommended that companies apply for this number as quickly as possible since it is essential for the basic functions of running a business. If you are a sole proprietor and have no employees, an EIN may not be necessary. However, if you are considering growing your business, it can be beneficial to have an EIN, even early on.

It is the quickest to apply for an EIN online. However, you can also mail and your application or fax it. If you call to ask for an EIN, you should fill out Form SS-4 in advance so that your answers are prepared when the agent asks questions period if you are filing via mail or fax, complete the form and send it to the IRS. It should be noted that these methods will involve a longer wait time, with mailed applications taking at least a month to process.

After you get your EIN, be sure to store it somewhere secure. You will not have to use your EIN as often as something like a Social Security number, so it is easy to forget it. That said, because the EIN is your companies tax ID, you will need to have it available when tax season comes around, as well as for when you are dealing with business licenses or particular financial accounts.

What is an EIN?

An EIN, otherwise known as an employer identification number, is similar to a Social Security number for a company. The Internal Revenue Service is responsible for providing an EIN, which may also be referred to as a federal tax ID number. Any eligible company may receive one period while it is not always necessary to procure an EIN, there are ways in which it can benefit a business to have one. If you’re starting a new business, please contact our employer attorney for a free consultation on employment law compliance.

An EIN is a company’s unique identifier. Primarily, it is used for tax reasons. The Internal Revenue Service mandates that the following kinds of businesses have one of these identifiers: corporations, businesses with employees, Companies that file employment, alcohol, tobacco, excise, and firearms tax returns.

An EIN functions as the primary identification of a company for the government. It may also be called a tax identification number, or TIN, as well as a federal tax ID number. It may be used to perform the following:

• open a business bank account
• file business tax returns
• obtain a business license
• apply for small business loans
• file assorted business legal documents

EINs are a Necessity

If you are attempting to verify your EIN number or simply check on your EIN, that is probably because you have realized how important it is, and you need it for a specific task. From credit applications to tax returns, licenses, and even permits from the state, an EIN is necessary. In order to run your business successfully and grow it with promise, as well as make sure that you adhere to all state and federal requirements, an EIN is a necessity.

EIN Privacy

In terms of privacy, EIN numbers are regarded as private by all agencies. This means that it is not always easy to verify your EIN number unless you possess the correct business stature. However, organizations that are tax-exempt, as well as nonprofits, are an exception to this rule.

Misplaced EIN

If you are an authorized representative for your business, you are able to contact the IRS in order to check on your EIN number or relocate it. You can also verify it by calling the IRS. The individuals who are able to access this information are:

• A company officer
• A partner of the business
• A sole proprietor
• A partner

If you are dealing with a trust, then you will need to relate to the estate as a:

• Trustee
• Executor

Calling the IRS to Verify EIN Number

If your title matches any of these, then simply contact the IRS offices. You will need to identify yourself, and then you will be provided the correct EIN for your business. The IRS maintains records for businesses, and this includes your EIN. If you’re attempting to verify your EIN and are an authorized individual, placing a call is a solid option.

No Authorization? No Problem

However, if you aren’t authorized, you will have to figure out another workaround. The IRS maintains the security of EIN numbers, and for a good reason—you do not want someone else to be able to access it.

Now, if you do not personally fit into any of these categories, there are still options. Contact an authorized person from your company, and have this representative fill out Form 2848 for the IRS. Since the EIN number is needed for form 2848 in order to be completed, your authorized contact will have to call the IRS to either obtain it or, if they already know it, to verify it.

Charitable Companies EINs

For charitable companies, the process is a little different. These company representatives can go to the website for IRS in order to perform a search for Exempt Organizations (also called a Select Check). This tool is used by the IRS to verify relevant information concerning charitable organizations. Since these types of entities have nonprofit status, the information is free to the public. You will see a tool for searching there, and once you are in the system, you will be able to view your EIN as well as other relevant information, such as tax information and company status. Remember that even though your charitable company is exempt from taxes, you will still need to file income taxes. If you do not, you can quickly lose your status as a tax-exempt company.

Additional Ways to Verify EIN

There may be other sources that can help you verify your EIN. For example, even though an EIN is considered private information, if you need to check your EIN, or are unsure what it is or where it might be found, do not worry. The majority of employers will comply with an individual’s request to verify their EIN number. For example, the nine-digit number will be found on paychecks and 1099s and is also issued to employers for contract work.

Verifying your EIN makes sense because if you are filing your tax returns and you use the wrong EIN number, your returns can be rejected, creating a headache for your business. Verifying your EIN can also help to make sure your reported income is correct and does not contain understatements or overstatements.

Credit Check

One more option here is to conduct a check of credit history, as long as you are authorized. A check of existing credit will confirm the business name and the address that is associated with a specific Tax ID Number. This will help you verify your EIN number.

Authority to Verify EIN

Another thing to think about here: in order to check on an EIN or verify this number, you either need to be a partner or officer of the business, or you need to possess a reason that is valid for needing this information. For example, a loan officer might need to gain authorization to an EIN in order to check on a loan application; this would be considered valid. Authorization is documented through a signed application, and this will confirm the EIN as well as the name of the company and other information. Be aware that running a check of verification does cost a fee.

Investors or prospective business partners are able to request that a business verify their EIN by providing tax returns from the previous year. While companies are not required to report this information, it is a good idea when dealing with possible new partners.