Understanding and locating your Employer Identification Number (EIN) is crucial for businesses operating in the United States. The Internal Revenue Service (IRS) uses the EIN to identify business entities for tax purposes. Whether you’re applying for your EIN or need to retrieve a lost one, this guide provides comprehensive information to navigate the process effectively.
Who Needs an EIN?
Before delving into how to conduct an IRS EIN search, it’s important to understand who actually requires this number. An EIN, also known as a Federal Tax Identification Number, is necessary for various types of entities, including:
- Employers: Businesses that hire employees are mandated to have an EIN to manage payroll taxes.
- Corporations and Partnerships: Most corporations (both C and S corps) and partnerships require an EIN.
- Limited Liability Companies (LLCs): While not always mandatory, LLCs often need an EIN, especially if they have more than one member or elect to be taxed as a corporation.
- Trusts and Estates: These entities require an EIN to manage and report taxes.
- Non-profit Organizations: Tax-exempt organizations must obtain an EIN to gain recognition of their tax-exempt status.
Even if your business structure doesn’t strictly necessitate an EIN for federal tax obligations, you might still need one to open business bank accounts, apply for state or local licenses, or for other business operational needs. It’s important to note that EINs are specifically for business-related activities and not for purposes like state tax lien auctions or lotteries.
For a deeper understanding of EIN requirements, you can refer to the IRS Publication 1635, “Understanding Your EIN.”
Prerequisites Before Applying for an EIN
If you are in the process of obtaining an EIN, ensure you have taken these preliminary steps:
Formalize Your Business Entity: If you are establishing a legal entity such as an LLC, partnership, or corporation, it’s imperative to formalize this structure with your state authorities before applying for an EIN. This also applies to tax-exempt organizations.
Tax Exempt Organizations – Formation First: Non-profits need to be legally formed before applying for an EIN. It’s critical for these organizations to file the necessary returns for maintaining their tax-exempt status to avoid automatic revocation after three consecutive years of non-filing.
Political Organizations and EINs: Political organizations have a unique requirement. They must file Form 8871, “Political Organization Notice of Section 527 Status,” within 24 hours of their creation. An EIN is necessary to file this form, and tax-exempt status is contingent upon this filing.
Methods to Apply for an EIN
The IRS provides multiple convenient ways to apply for an EIN, particularly for businesses with their principal place of business within the United States:
-
Online Application: The most efficient method is through the IRS website’s online EIN application portal. This service is available free of charge directly from the IRS and allows you to receive your EIN immediately upon completion.
- Apply for an EIN Online
-
Fax Application: You can complete Form SS-4, “Application for Employer Identification Number,” and fax it to the IRS at 855-641-6935. Processing via fax typically takes about four business days.
- Form SS-4, Application for Employer Identification Number
-
Mail Application: Alternatively, you can mail Form SS-4 to the Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999. Mail processing takes longer, usually around four weeks to receive your EIN.
Applying for an EIN from Outside the U.S.
For businesses whose primary operations are located outside the United States, the application process varies slightly:
- Phone Application: You can apply by phone by calling the IRS at 267-941-1099, Monday through Friday, 6 a.m. to 11 p.m. Eastern Time.
- Fax Application (International): Form SS-4 can be faxed to 855-215-1627 (within the U.S.) or 304-707-9471 (outside the U.S.).
- Mail Application (International): Send Form SS-4 to Internal Revenue Service, Attn: EIN International Operation, Cincinnati, OH 45999.
It’s important to remember that you are limited to one EIN application per day, regardless of the application method chosen.
Understanding the Responsible Party in EIN Applications
When applying for an EIN, you must designate a “responsible party.” This individual is the person who controls, manages, or directs the entity and the disposition of its funds and assets. The EIN application requires the responsible party’s:
- Full Legal Name
- Taxpayer Identification Number (Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), or EIN if the responsible party is an entity)
- Signature
Note: Nominees are not permitted to apply for an EIN. The responsible party must be someone directly associated with the entity and with significant control over its operations.
Beneficial Ownership Information Reporting to FinCEN
Certain types of corporations, LLCs, and other entities may also have obligations to report beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN). Beneficial owners are individuals who ultimately own or control a company. It is crucial to determine if your entity is required to comply with these FinCEN reporting rules.
Utilizing Your EIN After Acquisition
Once you receive your EIN, it can be used immediately for many business operations, such as:
- Opening business bank accounts
- Applying for necessary business licenses and permits
- Filing tax returns via mail
However, allow up to two weeks before attempting to use your EIN for:
- IRS Taxpayer ID Number (TIN) Matching Program verification
- Electronic tax filing (e-filing)
- Making tax deposits or electronic payments. For electronic payments, refer to IRS Publication 15, Circular E, Employer’s Tax Guide and Publication 4275 PDF, EFTPS Express Enrollment for New Businesses.
- Publication 15 (Circular E), Employer’s Tax Guide
- Publication 4275 PDF, EFTPS Express Enrollment for New Businesses
What to Do While Waiting for Your EIN
If you need to file a tax return before receiving your EIN, you should write “Applied For” and the application date in the EIN space on the tax form.
For tax deposits due before EIN receipt, send payments to the designated service center for your state, payable to the Internal Revenue Service. Include your business name (as on Form SS-4), address, type of tax, the period the tax covers, and the EIN application date on your payment.
- Service Center Addresses by State
Circumstances Requiring a New EIN
Generally, you will need to obtain a new EIN if there are significant changes to your business ownership or structure. However, changes such as business name, address, or responsible party do not necessitate a new EIN.
- When is a New EIN Required?
Deactivating an EIN When No Longer Needed
If your business closes or you no longer need your EIN, the IRS does not cancel EINs but can deactivate them.
- Deactivating Your EIN
IRS EIN Search: Recovering a Lost or Forgotten EIN
If you have misplaced or forgotten your EIN, there are several ways to conduct an IRS EIN search and recover it:
-
Check the EIN Application Notice: The IRS typically sends a notice when your EIN application is approved. This notice will display your EIN.
-
Contact Your Bank: Banks often keep EINs on record, especially for business accounts. Contact the bank where you opened your business account.
-
State and Local Licensing Agencies: If you have applied for state or local business licenses, these agencies may have your EIN on file.
-
Review Past Tax Returns: Your EIN should be listed on any previously filed business tax returns.
If these methods are unsuccessful, you can directly contact the IRS Business and Specialty Tax Line at 800-829-4933 (Monday to Friday, 7 a.m. – 7 p.m. ET). After verifying your identity and authorization, the IRS can provide your EIN over the phone. For TTY services, use 800-829-4059.
Managing Multiple EINs or Entities
It is crucial to understand that a business entity should only have one active EIN. If you believe you have multiple EINs or are unsure which one to use, contact the IRS Business and Specialty Tax Line at 800-829-4933 for guidance.
If your business has taken over another employer’s business, always use your own EIN for reporting and depositing employment taxes. Do not use the previous employer’s EIN. Refer to IRS Publication 15, Circular E, Employer’s Tax Guide, for further details.
Handling EINs Received in Error or Due to Fraud
If you receive an EIN that you did not apply for, or suspect someone has fraudulently obtained an EIN using your information, it is important to take immediate action.
- EINs Received in Error
- Report Tax Scams and Fraud
Re-establishing a Deactivated Retirement Trust EIN
If you find that your retirement trust EIN has been deactivated, you can re-establish it by sending specific information to the IRS, including the EIN in question, trust name, and contact information for the sponsor or trustee. This information can be faxed to 855-214-7520, mailed to Internal Revenue Service, Attn. EP Entity, M/S 6273, Ogden, UT 84201, or delivered in person to Internal Revenue Service, 1973 N Rulon White Blvd., Attn. EP Entity, M/S 6273, Ogden, UT 84404.
This comprehensive guide should assist you in understanding the process of obtaining, using, and searching for your IRS EIN, ensuring compliance and smooth business operations.
