EIN - Verify the legitimacy of your employer and get it right now

Employer Identification Numbers (EIN) are issued for the purpose of tax administration and are not intended for participation in any other activities (e.g., tax lien auction or sales, lotteries, etc).

Employer Identification Numbers are used for tax administration purpose. These numbers must not be used to participate in any other activities like lotteries, tax lien auction or sales and so on.

Employer Identification Number - Its shortcomings

From 21st May, 2012 it is effective that the Internal Revenue Service (IRS) will issue only one EIN to each person per day. And it has been followed since by them to make sure all taxpayers are dealt with in a fair and equitable manner. In case of trusts, the cap is applicable to grantors, owners or trustors. And for the estates, it is applicable on the decedent (decedent estate) or the debtor (as per the rule for bankruptcy estate). The said limitation is applied to all EIN requests received either via online or over the phone, mail or fax.

You'll have to fill up a Form SS-4 and submit it attached to your tax return, if you don't have the EIN due to the said limitation. Moreover, you'll have to mail the forms to the concerned address in order to file your tax return. On receiving your forms, the IRS will assign your EIN and then work toward processing your tax return. Once the process is complete, you'd be notified of your EIN in not more than four weeks.

Does your Responsible Party already have an EIN obtained via the Internet?

The IRS will simply decline to have you assigned an EIN, if your Responsible Party happens to have an EIN as an entity already through the Internet.

Describe Employer Tax Responsibilities

Information regarding employer tax responsibilities with respect to employee tax withholding, and taxable wages what are the tax returns to be filed can be found from Publication 15. As far as more complicated issues are concerned, then you'll find all the necessary data in Publication 15-A, whereas, tax treatment of several employee benefits can be accessed from Publication 15.

These publications can be downloaded by your employer from the official web address of the IRS at IRS.gov. However, you ask for the copies of these publications online by searching “Forms and Publications” in the given website, or else, you can get in touch with the appropriate authorities by calling 1-800-TAX-FORM.

Tax exemption status - Want to file for one?

The most suitable approach to apply for an EIN is to verify the legitimacy of your employer (organization). Almost all the employers can have their tax-exempt status revoked by the IRS, if you fail to file in your tax return paper or notice for three consecutive financial years. Make sure your company has the necessary documents to prove that your company has been formed legally and that the clocks starts ticking for the immediate next three years.