TAS Tax Tip: Employer Identification Numbers

By | February 1, 2024

February 1, 2024 – An Employer Identification Number (EIN) is a 9-digit number (for example, 12-3456789) assigned to sole proprietors, corporations, partnerships, estates, trusts, and other entities for tax filing and reporting purposes. Most businesses are required to have an EIN. You may apply for an EIN for free through the IRS and will be issued your EIN immediately.

Sub Navigation (All of these topics need to be addressed)

What do I need to know?
Actions
Resources
Taxpayer Rights
Related Content

What do I need to know?

You may apply for an EIN online if your principal business is located in the United States or U.S. Territories. The person applying online must have a valid Taxpayer Identification Number (SSN, ITIN, EIN). You are limited to one EIN per responsible party per day. The “responsible party” is the person who ultimately owns or controls the entity or who exercises ultimate effective control over the entity. Unless the applicant is a government entity, the responsible party must be an individual (i.e., a natural person), not an entity.

Make sure your organization is formed legally before you apply for an EIN. Nearly all organizations are subject to automatic revocation of their tax-exempt status if they fail to file a required return or notice for three consecutive years. This period begins as soon as you apply for your EIN.

Actions

What should I do?

When applying for an EIN, you must complete the application in one session, as you will not be able to save and return at a later time. Your session will expire after 15 minutes of inactivity, and you will need to start over.

When submitting your application, after all validations are done you will get your EIN immediately upon completion. You can then download, save, and print your EIN confirmation notice.

How will this affect me?

This EIN is your permanent number and can be used immediately for most of your business needs, including:

Opening a bank account
Applying for business licenses
Filing a tax return by mail

However, it will take up to two weeks before your EIN becomes part of the IRS’s permanent records. You must wait until this occurs before you can:

File an electronic return
Make an electronic payment
Pass an IRS Taxpayer Identification Number (TIN) matching program

Wait, I still need help.

If you previously applied for and received an Employer Identification Number (EIN) for your business, but have since misplaced it, try any or all of the following actions to locate the number:

Find the computer-generated notice that was issued by the IRS when you applied for your EIN. This notice is issued as a confirmation of your application for, and receipt of an EIN.
If you used your EIN to open a bank account, or apply for any type of state or local license, you should contact the bank or agency to secure your EIN.
Find a previously filed tax return for your existing entity (if you have filed a return) for which you have your lost or misplaced EIN.  Your previously filed return should be notated with your EIN.
Ask the IRS to search for your EIN by calling the Business & Specialty Tax Line at 800-829-4933. The hours of operation are 7:00 a.m. – 7:00 p.m. local time, Monday through Friday.

Visit the IRS EIN Frequently Asked Questions page for more details.

The Taxpayer Advocate Service is an independent organization within the IRS that helps taxpayers and protects taxpayers’ rights. We can offer you help if your tax problem is causing a financial difficulty, you’ve tried and been unable to resolve your issue with the IRS, or you believe an IRS system, process, or procedure just isn’t working as it should. If you qualify for our assistance, which is always free, we will do everything possible to help you.

Visit www.taxpayeradvocate.irs.gov or call 1-877-777-4778.

Low Income Taxpayer Clinics (LITCs) are independent from the IRS and TAS. LITCs represent individuals whose income is below a certain level and who need to resolve tax problems with the IRS. LITCs can represent taxpayers in audits, appeals, and tax collection disputes before the IRS and in court. In addition, LITCs can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Services are offered for free or a small fee. For more information or to find an LITC near you, see the LITC page on the TAS website or Publication 4134, Low Income Taxpayer Clinic List.

Resources

    Title:
    Action with hyperlink (Read More, Download, etc.)

Taxpayer Rights

Highlight all taxpayer rights that pertain to this topic

The Right to Be Informed
The Right to Quality Service
The Right to Pay No More Than the Correct Amount of Tax
The Right to Challenge the IRS’s Position and Be Heard
The Right to Appeal an IRS Decision in an Independent Forum
The Right to Privacy
The Right to Finality
The Right to Confidentiality
The Right to Retain Representation
The Right to a Fair and Just Tax System