Employer Identification Number
The Employer Identification Number (EIN), also known as the Federal Employer Identification Number (FEIN) or the Federal Tax Identification Number (FTIN), is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States for the purposes of identification. When the number is used for identification rather than employment tax reporting, it is usually referred to as a Taxpayer Identification Number (TIN). When used for the purposes of reporting employment taxes, it is usually referred to as an EIN.[1] These numbers are used for tax administration and must not be used for any other purpose. For example, an EIN should not be used in tax lien auction or sales, lotteries, or for any other purposes not related to tax administration.[2]
Comparison to Social Security numbers
A
The EIN serves a similar administrative purpose as a SSN, but for a business entity rather than an individual person. In some cases, such as a sole proprietorship, an SSN may be used as a business Tax ID without applying for a separate EIN, but in order to hire employees or establish business credit, an EIN is required. Unlike a SSN, an EIN is not considered sensitive information and is freely distributed by many businesses by way of publications and the internet.
EIN format
The EIN system was created by the IRS in 1974 by Treasury Decision (TD) 7306, 39 Fed. Reg. 9946. The authority for EINs is derived from 26
A business needs an EIN in order to pay employees and to file
Before 2001, the first two digits of an EIN (the EIN Prefix) indicated the business was located in a particular geographic area. In 2001, EIN assignment was centralized at three of the IRS campuses, although all 10 campuses can assign an EIN, if necessary.[5]
Campus | Code |
---|---|
Andover, Massachusetts | 10, 12 |
Atlanta | 60, 67 |
Austin | 50, 53 |
Brookhaven (Holtsville), New York | 01, 02, 03, 04, 05, 06, 11, 13, 14, 16, 21, 22, 23, 25, 34, 51, 52, 54, 55, 56, 57, 58, 59, 65 |
Cincinnati | 30, 32, 35, 36, 37, 38, 61 |
Fresno | 15, 24 |
Kansas City
|
40, 44 |
Memphis | 94, 95 |
Ogden, Utah | 80, 90 |
Philadelphia | 33, 39, 41, 42, 43, 48, 62, 63, 64, 66, 68, 71, 72, 73, 74, 75, 76, 77, 82, 83, 84, 85, 86, 87, 88, 91, 92, 93, 98, 99 |
Internet | 20, 26, 27, 45, 46, 47, 81 |
Small Business Administration (SBA) | 31 |
Tax-exempt, charitable, non-profit organizations, and EINs
The issuance of an EIN to a
Before applying for an EIN, it is always preferred to check whether the affected organization has been formed legally or not. Almost all organizations that apply for EINs can have their tax-exempt status automatically revoked if they have failed to file a necessary return or notice for a period of three years consecutively. Such a three-year period begins when the organization is legally formed; it is best to form the organization legally before applying for an EIN.[7]
EIN expiration/cancellation
This section contains instructions, advice, or how-to content. (January 2024) |
EINs do not expire. Once an EIN has been issued to an entity, it will never be reissued, although a business may elect to cancel or change its current EIN for specific reasons.[citation needed] Cases include purchasing or becoming a subsidiary of another business, or if there are changes to the ownership structure of the business, or if you are a sole proprietorship subject to bankruptcy proceedings. If you change your location or business name, you don't need to get a new EIN, but you will still have to report these changes to the IRS. You can report a change of business address with an IRS Form 8822 B.[8] If you are changing your business structure, you can file an IRS Form 8832.[9]
A new EIN assigned to your business will automatically replace your old EIN, and the old EIN will become inactive and not be reissued. Likewise, if you dissolve your business, the EIN will become inactive, closing your account with the IRS. There is no way to cancel or remove an EIN, as it is a permanent Federal taxpayer identification number once assigned.[10]
See also
- CAGE Code issued by the Defense Logistics Information Service (DLIS) to identify suppliers to the Department of Defense
- D.U.N.S. number issued by Dun & Bradstreetand required for certain U.S. government contractors and federal grant recipients
- Confidential T.P.I.N.number issued by the Central Contractor Registry of the U.S. Government
- VAT
References
- ^ "Understanding your EIN" (PDF). Internal Revenue Service. 2014. p. 2. Archived (PDF) from the original on March 18, 2021.
- ^ "Apply for an Employer Identification Number (EIN) Online". Archived from the original on 2015-03-23. Retrieved 2015-03-23.
- ^ "How Do I Find an EIN?". SBA.gov. 2011-06-17. Archived from the original on 2013-01-13. Retrieved 2013-01-02.
- ^ "KnowX FEIN search". KnowX.com. Archived from the original on 2012-10-23. Retrieved 2013-01-02.
- ^ "How EINs are Assigned and Valid EIN Prefixes". Internal Revenue Service. January 20, 2021. Archived from the original on March 19, 2021. Retrieved April 23, 2021.
- ^ "Tax Exempt Organization Search | Internal Revenue Service". www.irs.gov. Archived from the original on 2020-05-05. Retrieved 2021-07-29.
- ^ EIN, Retrieved 13 July 2015.
- ^ "About Form 8822-B, Change of Address or Responsible Party - Business | Internal Revenue Service". www.irs.gov. Archived from the original on 2021-07-29. Retrieved 2021-07-29.
- ^ "About Form 8832, Entity Classification Election | Internal Revenue Service". www.irs.gov. Archived from the original on 2021-07-29. Retrieved 2021-07-29.
- ^ "Canceling an EIN - Closing Your Account | Internal Revenue Service". www.irs.gov. Archived from the original on 2021-07-29. Retrieved 2021-07-29.