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OTHER NAMES Also known as the Tax Identification Number (TIN), '''Federal Employer Identification Number''' (FEIN) or the '''Federal Tax Identification Number''', the EIN 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 '''TIN''', and when used for the purposes of reporting employment taxes, it is usually referred to as an ''EIN''. This article will use the latter term. COMPARISON TO SOCIAL SECURITY NUMBERS Similar in purpose to the Social Security Number assigned to individuals, EINs are used by employers, sole proprietors, Corporation s, Partnership s, non-profit organizations, Trust s and Estates , government agencies, certain individuals and other business entities. The IRS uses this number to identify taxpayers that are required to file various business tax returns. Individuals who are employers may choose to either obtain an EIN or use their Social Security Number for the purpose of reporting taxes withheld on behalf of their employees. Contrary to some misconceptions, credit bureaus and credit issuers can tell the difference between SSN and EIN Numbers. SSN Numbers can be validated as to origin and state / year of issuance. The credit bureaus and issuers are highly trained in fraud detection, and increasingly sophisticated algorithms and protections are used. EIN FORMAT An EIN is usually written in the form 00-0000000 whereas a Social Security Number is usually written in the form 000-00-0000 in order to differentiate between the two. There are EIN Decoders on the web that can identify which state the company had registered the EIN Number in. All businesses must have an EIN in order to file yearly tax returns. Those business that do not are considered proprietorships and the Owner / Operator SSN is used on the tax form. 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 at three of the IRS campuses, although all 10 campuses can assign an EIN, if necessary .
TAX EXEMPT, CHARITY NON PROFIT ORGANIZATIONS AND EINS The issuance of an EIN to a non-profit organization is separate and distinct from the organization actually obtaining tax exempt status with the IRS. Each chapter of a national non-profit organization must have its own EIN, but the central organization may file for a group exemption. EIN EXPIRATION EINs do not expire. Once an EIN has been issued to an entity, it will not be reissued. SEE ALSO
EXTERNAL LINKS Verifying EINs
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