Lest Ye Be Confused: EINs are Free

Don't miss the Fall edition of the IRS's Employee Plan News [pdf]. It is chock full of some very helpful information. And for anyone who might be under the wrong impression that there is a fee for obtaining an Employer…

Don’t miss the Fall edition of the IRS’s Employee Plan News [pdf]. It is chock full of some very helpful information.

And for anyone who might be under the wrong impression that there is a fee for obtaining an Employer Identification Number (“EIN”), please note the IRS’s response to the confusion in the newsletter:

In our Summer 2003 Edition (page 10) [pdf], we described the new online process for getting a free EIN from the IRS. Well, recently our Customer Account Services folks have received calls from people who are certain they are in the www.irs.gov website but are being charged for an EIN. The IRS notes that keying “EIN” into some search engines will yield multiple sites that in some way relate to “EIN”. Some of the search results are for commercial sites that charge for obtaining an EIN – which is legal, but unnecessary. We advise anyone to go directly to www.irs.gov and get their EIN for free.

Here is what the IRS had to say in the Summer 2003 Edition regarding how to obtain an EIN online:

The IRS has rolled out yet another way to apply for an employer identification number (EIN). It is the new Online EIN application and features:
  • 24×7 availability
  • NO registration required
  • NO paper sent to the IRS

Once the online form is completed, a preliminary validation is performed that lets the user know if any information the IRS needs wasn’t included. An EIN will be issued after the successful online submission of the completed Form SS-4.

Users are urged to print their SS-4 application after the EIN is assigned and keep a paper copy for their records. To do this, just click the “Print Form” button after receiving the EIN. This provisional EIN may be used immediately to file tax returns. The IRS will review the application for completeness and verify that a new EIN is needed. Users will receive a confirmation notice, CP 575, within two weeks.

Attention Third Parties: You may request EINs via the Internet on behalf of your clients. However, you must keep a copy of the Form SS-4, signed by the client, in your business files. Please note that there are a few limitations. The following request types cannot use the Internet application:

  • Requests from addresses outside the continental USA, Alaska and Hawaii
  • Limited Liability Company without type of entity
  • Real Estate Mortgage Investment Conduits (REMIC)
  • State and Local Governments
  • Federal Government/Military Entities
  • Indian Tribal Governments or Enterprises

To apply online go to www.irs.gov/businesses/small and click on “Online Application – Form SS-4. Note: There is no limit to the number of EIN requests that can be requested at one time.

You can access the online application here as well as information about EINs here.

By the way, did you know about this page here with links to pages for all 50 states containing information on doing business in the applicable state, taxation, links for employers, and more?

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