Content
For more information, refer to Do You Need an EIN and Publication 1635, Understanding Your EINPDF. Online – The Internet ein number definition is the preferred method to use when applying for an EIN. The online EIN application is available Monday to Friday, 7 a.m.
An Employer Identification Number (EIN) is a unique nine-digit number assigned to U.S. business entities. The EIN is also known as Federal Employer Identification Number (FEIN) or Federal Tax Identification Number (FTIN). An EIN is unique to the business entity to which it was assigned, and it never expires. The same number set is never reissued to another business entity, even if it goes bankrupt and gets winded up. Each U.S. citizen is issued a unique Social Security number upon their birth. This number enables easy identification by government entities and also serves to distinguish one person from another.
Meaning of EIN in English
In the same manner, the IRS assigns Employee Identification Numbers (EINs) to businesses, usually when they are newly established. The term employer identification number (EIN) refers to a unique identifier that is assigned to a business entity so that it can easily be identified by the Internal Revenue Service (IRS). EINs are commonly used by employers for the purpose of reporting taxes. The number is made up of nine digits and is formatted as XX-XXXXXXX. Businesses can apply for EINs directly through the IRS, which usually issues them immediately. Using an EIN instead of a Social Security number can help protect business owners’ personal information.
All EIN applications (mail, fax, 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 “responsible party,” controls, manages, or directs the applicant entity and the disposition of its funds and assets. Unless the applicant is a government entity, the responsible party must be an individual (i.e., a natural person), not an entity.
Change of Ownership or Structure
The Third Party Designee section must be completed at the bottom of the Form SS-4. The Form SS-4 must also be signed by the taxpayer for the third party designee authorization to be valid. The Form SS-4 must be mailed or faxed to the appropriate service center. The third party designee’s authority extends to “newly” assigned EINs only and terminates at the time the EIN is assigned and released to the designee.
You also can check business documents, such as tax returns, to find your EIN printed there. If the EIN number holder is responsible for any outstanding business taxes, or needs to file appropriate taxes, the matter must be settled before the account can be closed. Information and additional contact information can be found on the cancellation page of the IRS website.
Medicare Taxes
Or you might look over old financing documents, like applications for business loans or lines of credit. You may also apply by telephone if your organization was formed outside the U.S. or U.S. territories. Make sure that you select church or church-controlled organization or other nonprofit organization as the type of entity. For more information about EIN application procedures, see Question 4 of FAQs regarding Applying for Tax Exemption.