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Avoiding Common Ein Problems
ï If you wish to elect to be taxed as an S corporation, you must file Form 2553,
Election by a Small Business Corporation (Under Section 1362 of the Internal Revenue
Code).
ï An association, limited liability company (LLC) or other organization that elects to
be taxed as a corporation must file Form 8832, Entity Classification Election.
ï Remember to always include your SSN, EIN, or ITIN on Line 7b of Form SS-4.
ï Always use the full legal name you entered on Form SS-4, line 1 and the EIN
given to you, consistently on all business tax returns you file with the IRS.
ï If you change your address after you receive your EIN, you must use Form 8822,
Change of Address, to notify the IRS of the new address.
ï If you change your business name after you receive your EIN, write to us at the
address where you file your tax return. The request to change your business
name must be signed by an authorized person. Additionally, partnerships and
corporations must include a copy of the Articles of Amendment that were filed
with the state that authorized the name change.
ï If the U.S. Postal Service doesnít deliver mail to your street address and you have
a P.O. Box, show the P.O. Box number as the entityís mailing address instead of
the street address.
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How EIN's Are Assigned and Valid EIN Prefixes
An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is used to identify a business entity.
Prior to 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, although all 10 campuses can assign an EIN, if necessary.
As a result of the centralization effort, the EIN prefix no longer has the same significance. The EIN prefix now only indicates which campus assigned the EIN. Each campus has certain prefixes available for use, as well as prefixes that are solely for use by the online application and the Small Business Administration. The prefix breakdown is shown in the table below:
Campus/Other Location Valid EIN Prefixes
Andover 10, 12
Atlanta 60, 67
Austin 50, 53
Brookhaven 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 80, 90
Philadelphia 33, 39, 41, 42, 43, 45, 46, 47, 48, 62, 63, 64, 66,
68, 71, 72, 73, 74, 75, 76, 77, 81, 82, 83, 84, 85,
86, 87, 88, 91, 92, 93, 98, 99
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SS-4 Form for Corporation
Line 1 Enter the corporate name as it appears on the corporate charter.
Line 2 Enter Doing Business as (DBA) name, only if different from Line 1.
Line 3 If you have a designated person to receive all of your IRS correspondence,
enter that personís name on this line. If none, leave blank .
Line 4a-b Enter your mailing address. If Line 3 (Care-Of) is completed, enter the
address for the designated person to receive the tax information.
Lines 5a-b Enter the business physical location, only if different from Lines 4a-b
mailing address. Do not enter a PO Box here.
Line 6 Enter the county and state where principal business is located.
Line 7a Enter the first name, middle initial, and last name of responsible party.
The responsible party will be a president, vice president or other principal
officer of the corporation.
Line 7b Enter the SSN or ITIN of the responsible party shown on Line 7a.
Line 8a N/A
Line 8b N/A
Line 9 Check the ìCorporationî box, then write on the line the form number
that you intend to file (ex: 1120). If you entered ì1120Sî after the checkbox,
you must file Form 2553. See the Instructions for Form 2553.
Line 9b Enter the state or foreign country where you were incorporated.
Line 10 If your reason for applying is not specifically listed, check the ìOtherî
box and enter the reason.
Line 11 Enter the date you first started or acquired your business.
Line 12 Enter the last month of your accounting year or tax year.
Line 13 Enter the highest number of employees expected in the next 12 months
(Agricultural, Household or Other). If none, enter 0 and skip to Line 16.
Line 14 If you expect your employment tax liability to be $1,000 or less in a full
calendar year and want to file Form 944 annually instead of Forms 941
quarterly check ìYesî. (To file Forms 941, check ìNoî.)
Line 15 If your business has (or will have) employees enter the date the business
began or will begin to pay wages (Month, Date, Year). If you have
no employees, leave blank. If the applicant is a withholding agent, enter
date income will first be paid to nonresident alien.
Line 16 Check one box that best describes the type of business you operate (i.e.
construction, real estate, etc..) If none of the listed boxes applies, check
the ìOtherî box and write your specific type of business. Do not leave
blank or enter ìnoneî or ìN/Aî.
Line 17 Describe the applicantís principal line of business in more detail (such
as, type of merchandise sold, specific construction work, product
produced or service provided). Do not leave blank or enter ìnoneî or
ìN/Aî.
Line 18 If the applicant shown on line one (1) ever previously applied for and
received an EIN, check ìyesî. If ìyesî, enter previous EIN on the line.
Complete the Third Party Designee section only if you want to authorize the
named individual to receive the EIN and answer questions about the completion of
Form SS-4. You must also sign the application for the authorization to be valid.
Name and Title: Print your name and title.
Telephone Number: Enter the telephone number where we can reach you if we
have questions about your application.
Signature: The president, vice president, or other principal officer must sign the
application if the Third Party Designee section is completed.
Note: If you wish to elect S-corporation status, you must file Form 2553, Election
by a Small Business Corporation.
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SS-4 Form for Nonprofit Corporation
Exempt Organizations
Line 1 Enter the legal name of the exempt organization.
Line 2 N/A
Line 3 Enter the name of the responsible party for the organization.
Line 4 a-b Enter the mailing address. This is the address where all IRS correspondence
will be sent.
Lines 5a-b Enter only if different from the mailing address in 4a and 4b.
Line 6 Enter the county and state where the exempt organization is located.
Line 7 a-b Enter the name and SSN or ITIN of a responsible and duly authorized
member or officer of the exempt organization.
Line 8a N/A.
Line 8b N/A
Line 8c N/A
Line 9a Check only one box. If you check ìotherî, enter the specific reason for
applying.
Line 9b If you are a corporation, enter the State or Foreign Country where you
were incorporated.
Line 10 If your reason is not specifically listed, check the ìOtherî box and enter
the reason.
Line 11 Enter the date you first started or acquired your organization.
Line 12 Enter the last month of your accounting year or tax year.
Line 13 Enter the highest number of employees expected in the next 12 months
(Agricultural, Household or Other). If none, enter 0 and skip to Line 16.
Line 14 If you expect your employment tax liability to be $1,000 or less in a full
calendar year and want to file Form 944 annually instead of Forms 941
quarterly check ìYesî. (To file Forms 941, check ìNoî.)
Line 15 If your business has (or will have) employees enter the date the business
began or will begin to pay wages (Month, Date, Year.) If you have no
employees, leave blank. If the applicant is a withholding agent, enter
date income will first be paid to nonresident alien.
Line 16 Check one box that best describes the type of business you operate
(construction, real estate, etc.). If none of the listed boxes apply, check
the ìOtherî box and write your specific type of business. Do not leave
blank or enter ìnoneî or ìN/Aî.
Line 17 Describe the applicantís principal line of business in more detail (type
of merchandise sold, specific construction work, product produced or
service provided). Do not leave blank or enter ìnoneî or ìN/Aî.
Line 18 If the applicant shown on line one (1) ever previously applied for and
received an EIN, check ìYesî. If ìyesî, enter previous EIN on the line.
Complete the Third Party Designee section only if you want to authorize the
named individual to receive the EIN and answer questions about the completion of
this form. You must also sign the application for the authorization to be valid.
Name and Title: Print your name and title.
Telephone Number: Enter the telephone number where we can reach you if we
have questions about your application.
Signature: A responsible and duly authorized member or officer having knowledge
of the exempt organizationís affairs must sign the application if there is a Third
Party Designee.
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Q: Do I Need An Employer Identification Number (EIN), Aka Federal Tax ID Number ?
A: In short, the answer is yes. That number is a unique number used to identify your business. You'll need it when registering your business with state or federal agencies. You must have an EIN if you sell goods and/or have employees. Occasionally, some sole proprietors choose to use their social security number (SSN) in lieu of an EIN; however, in today's world where identify theft is a very real threat, it's a safer bet to protect your SSN and use an EIN, even if you're a sole proprietor.
Follow these simple steps to receive your FEIN fast:
1. Apply online by visiting the IRS site at www.irs.gov, or
2. Call and apply by phone. Call the IRS at 800-829-4933.
3. The IRS will only issue an EIN over the phone or online to those duly qualified as listed above.
4. Write the number you are issued and keep it in a safe place.
5. If you would prefer to file for your FEIN by mail, visit the IRS website at www.irs.gov and download the
Form SS-4. Complete, sign and date the form and mail to the address shown on the form.
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Register for A Employer Identification Number
Federal Tax ID Number Registration
To register with the federal government, you must complete an Application for Employer
Identification Number (Form SS-4) or apply online at
www.irs.gov) and submit to:
Internal Revenue Service Center
Attn: EIN Operation
Holtsville, NY 00501
Telephone ñEmployer ID Number: (800) 829-4933
Fax ñ Employer ID Number: (631) 447-8960
www.irs.gov
As a public service, the Internal Revenue Service will assemble and forward to you a tax
information kit that fits your particular business situation. The kit includes forms and publications
that apply solely to federal taxes. To obtain this information, contact the IRS at 1-800-829-3676 or
their web site, www.irs.gov, and request:
1) A Small Business Resource Guide CD (Publication 3207) contact 1-800-829-3676
2) Tax Guide for Small Business (Publication 334); and
3) Employer's Tax Guide (Publication 15).
For more information regarding Federal Employer Identification Numbers, read Understanding Your
EIN (Publication 1635).
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Employer Identification Number (EIN)
An EIN identifies the business for federal and state tax purposes. Many financial institutions will not open a commercial banking account under an assumed name without the EIN. Sole proprietorships with no employees DO NOT require an EIN. This type of business uses the ownerís social security number for tax purposes. However, using a social security number to identify your business could increase the chances of identity theft. An EIN must be obtained if the business is set up as a partnership, a corporation for profit or nonprofit, a limited liability company, a trust or estate, or a sole proprietorship that pays wages to one or more employees. Remember: if services are performed for a corporation, the owner is an employee of the corporation and subject to all employment taxes. An EIN is required on any return, statement, or other document if you are an employer. Individuals who file Schedule C or I must use EINs when filing excise, employment, alcohol, tobacco or firearms returns.
It is important to note:
? If you become the new owner of an existing business, you cannot use the EIN of the previous owner.
? An existing business that adds, opens or acquires a new operation of similar type may use its current EIN for both the existing and new operations.
However, a new establishment must obtain its own EIN if its line of business is different from the existing operation. An EIN form (SS-4) can be obtained from the IRS online at www.irs.gov or call 800.829.4933. The application should be completed early enough to allow processing time for an EIN number to be issued.
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How To Complete Form SS-4 / Application for An EIN.
If you choose to apply online, you will not need a Form SS-4. Otherwise, you can
download Form SS-4 and separate instructions by accessing the IRS website at
www.irs.gov or call 1-800-TAX-FORM to request the form and instructions by mail.
You can also visit your local IRS office.
Special Characters In Your Business Name:
The only special characters IRS systems can accept in a business name are: 1) alpha
(A-Z), 2) numeric (0-9), 3) hyphen (-) and 4) ampersand (&). If the legal name of
your business includes anything other than those listed above, you will need to
decide how best to enter your business name into the online EIN application or on
Form SS-4.
If your legal name contains a symbol or character such as a ìplusî symbol (+) or
a period (.) you could spell out the symbol and leave a space. Jones.com could be
submitted as Jones Dot Com or Jones Com. The backward (\) or forward (/) slash
can be subsituted with a hyphen (-). If your business name contains an apostrophe
(ë), drop the apostrophe and do not leave a space.
Third Party Designee:
No matter what method you use to apply, if a third party is making the application
for an EIN, the taxpayer must authorize the third party to apply for and receive the
EIN.
ï A Third Party Designee (TPD) must complete his/her identifying information at
the bottom of the Form SS-4.
ï The Form SS-4 must be signed by the taxpayer for the TPD authorization to be
valid.
ï The Form SS-4 must be mailed or faxed to the appropriate Internal Revenue
Service campus. See ìWhere to Applyî in this publication.
A TPD may call for an EIN. However, a faxed Form SS-4, with the taxpayerís
signature, is still required. IRS assistors will take the information over the phone
from the TPD and ask the designee to fax the completed Form SS-4 to them (to the
IRS assistorís attention) at an administrative fax number. After receiving the faxed
Form SS-4, the EIN will be assigned and faxed back to the designee, or given over
the phone. The designeeís authority terminates at the time the EIN is assigned and released to
the designee. Read the instructions for Form SS-4.
After reading the instructions, find your entity type (sole proprietor, corporation,
partnership, etc.).
Note: This is not an election for a tax classification. See Form 8832, Entity
Classification Election, for tax classification information.
The Internal Revenue Service has become aware that nominee individuals are being
listed as principal officers, general partners, grantors, owners, and trustors in
the Employer Identification Number (EIN) application process. A nominee is not
one of these people. Rather, nominees are temporarily authorized to act on behalf
of entities during the formation process. The use of nominees in the EIN application
process prevents the IRS from gathering appropriate information on entity
ownership, and has been found to facilitate tax non-compliance by entities and
their owners.
The IRS does not authorize the use of nominees to obtain EINs. All EIN applications
(mail, fax, phone, electronic) must disclose the name and Taxpayer Identification
Number (SSN, ITIN, or EIN) of the true principal officer, general partner,
grantor, owner or trustor. This individual or entity, which the IRS will call the
ìresponsible party,î controls, manages, or directs the applicant entity and the disposition
of its funds and assets.
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What Is An EIN?
An Employer Identification Number (EIN) is a nine-digit number that IRS assigns
in the following format: XX-XXXXXXX. It is used to identify the tax accounts of employers
and certain others who have no employees. However, for employee plans,
an alpha (for example, P) or the plan number (e.g., 003) may follow the EIN. The IRS
uses the number to identify taxpayers that are required to file various business tax
returns. EINs are used by employers, sole proprietors, corporations, partnerships,
non-profit associations, trusts, estates of decedents, government agencies, certain
individuals, and other business entities. Use your EIN on all of the items that you
send to the IRS and the Social Security Administration (SSA).
Caution: An EIN is for use in connection with your business activities only. Do not
use your EIN in place of your social security number (SSN).
You should have only one EIN for the same business entity. If you have more than
one EIN and are not sure which one to use, call the Business and Specialty Tax Line
at 1-800-829-4933 (TTY/TDD users can call 1-800-829-4059). Provide the numbers
that you have, the name and address to which each was assigned, and the address
of your main place of business. The IRS will tell you which number to use.
If you do not have your EIN by the time your return is due, write ìApplied Forî
and the date that you applied for it in the space shown for the number.
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Tax Exempt/Non Profit Organizations EIN Number
At the beginning of the online EIN application process, you will be asked to check a box that best describes your legal structure. The legal structure for all Tax Exempt/Non Profit Organizations is found under the 7th option, View Additional Types, Including Tax Exempt and Governmental Agencies. Non-profit organizations include corporations, trusts, limited liability companies, and unincorporated associations that qualify for tax-exempt status under Internal Revenue Code (IRC) 501(a) as described in Publication 557, Tax-Exempt Status for Your Organization.
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Obtain Employer Identification Number
Obtain federal employee identification number (EIN) if needed. Use IRS Form SS-4. Contact Internal
Revenue Service, 1-800-829-4933 toll free or www.irs.gov.
You need an EIN if your business meets any one of the following:
? The business is a corporation, partnership, or LLC.
- You have employees.
- You have a Keogh Plan.
- You file one of these tax returns: excise; fiduciary; or alcohol, tobacco, and firearms.
A sole proprietor with no employees and none of the other items listed above does not need an EIN;
the business ownerís social security number is the businessís tax number.
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How To Apply for An Ein Number
You can apply for an EIN online, by telephone, fax, or mail depending on how soon
you need to use the EIN.
Apply Online
Note: This is a free service offered by the Internal Revenue Service at
www.irs.gov. Beware of websites on the internet that charge for this free service.
The internet is the preferred method to use when applying for an EIN. Visit the IRS
website at www.irs.gov (keyword ìEINî) and check out the Interview-style online
EIN application. The application includes embedded help topics and hyperlinked
keywords and definitions so separate instructions arenít needed. The information
you submit is validated during the online session. Once youíve completed the application,
you will receive your EIN immediately. You can then download, save, and
print your confirmation notice. (This feature is not available to Third Party Designees.)
The online application is fast, free, and user-friendly!
The application is available during the following hours:
Monday - Friday 6:00 a.m. to 12:30 a.m. Eastern time
Saturday 6:00 a.m. to 9:00 p.m. Eastern time
Sunday 7:00 p.m. to 12:00 a.m. Eastern time
The online application is available for all entities whose principal business, office
or agency, or legal residence (in the case of an individual), is located in the United
States or U.S. Territories. Additionally, the principal officer, general partner, grantor,
owner, trustor etc. must have a valid Taxpayer Identification Number (Social Security
Number, Employer Identification Number, or Individual Taxpayer Identification
Number) in order to use the online application.
Apply by Telephone
If you donít have internet access, you can receive your EIN by telephone and use
it immediately. When applying by phone, IRS suggests that you complete Form
SS-4 before the call so that you will have all relevant information available. Then,
call the Toll-Free EIN number (1-800-829-4933) between 7:00 a.m. and 10 p.m. local
time, Monday through Friday. International applicants must call 215-516-6999. The
person making the call must be authorized to receive the EIN and answer questions
concerning the Form SS-4.
An IRS representative will use the information received from you or your representative
to establish your account and assign you an EIN. Write down the number you
are given and keep it for your records.
Apply by Fax
You can receive your EIN by fax within four (4) business days. Fax your completed
Form SS-4 to the fax number listed for your state under ìWhere to Applyî in this
publication. The fax number is available 24 hours a day, 7 days a week. Be sure to
provide your fax number so that an IRS representative can fax the EIN back to you.
Do not fax an application and also call the EIN toll-free number for the same entity
because a duplicate EIN may be assigned. By using this method, you are authorizing
IRS to fax your EIN without a cover sheet.
Apply by Mail
You can receive your EIN by mail within about four (4) weeks. Ensure that the
Form SS-4 contains all of the required information and mail the application to the
address listed under ìWhere to Applyî in this publication. An EIN will be assigned
and mailed to you.
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When Is A Employer Identification Number Required?
You will need a new EIN if any of the following are true:
ï You are a subsidiary of a corporation and currently use the parentís corporate EIN
ï You become a subsidiary of a corporation
ï The corporation becomes a partnership or a sole proprietorship
ï You create a new corporation after a statutory merger
ï You receive a new corporate charter
You will not need a new EIN if any of the following are true:
ï You are a division of a corporation
ï After a corporate merger, the surviving corporation uses its existing EIN
ï A corporation declares bankruptcy. However, if a liquidating trust is established
for a corporation that is in bankruptcy, an EIN for that trust is required. See Treasury
Reg. ß 301.7701-4(d).
ï Your business name changes
ï You change your location or add locations (stores, plants, enterprises or branches)
ï You elect to be taxed as an S Corporation by filing Form 2553
ï After a corporate reorganization, you only change identity, form, or place of
organization
ï The corporation is sold and the assets, liabilities and charters are obtained by the
buyer
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