A federal tax id number is also known as the employer identification number (EIN) because all the employers need to have it in order to be tracked by the government regarding the tax payments and tax return filings. The EIN is a long nine digit number which is mandatory for the Internal Revenue Service (IRS) to keep a check whether you are filing or paying your taxes on time. Therefore, the employers require the EIN and the employees require the social security number (SSN). For individuals who are handling a proprietorship without any employees, having an SSN would be just as fine, for most parts.
How to Apply for an EIN?
Before you start reading the process and the ways, an important thing to keep in mind is that if you have already been allotted a federal tax id number previously, then you don't need to apply for a new one. The previous number would work just as fine. In a situation wherein you have ended up misplacing your federal tax id number, you will have to visit the official website of Internal Revenue Service (IRS.gov) and follow the instructions as mentioned. You can try to find the IRS notification on your email which is always issued by the IRS as a confirmation towards receiving your application. Also if you have used your EIN for opening a bank account, then you can try getting the details from the bank. If you still fail to find information related to your previous EIN, then you can find helpline numbers on the official website of IRS.
In case you are applying for an EIN for the very first time, you need to follow the procedure mentioned below.
Internet Application for EIN
This is one of the most fastest as well as the most preferred method to apply for a federal tax id number. You need to fill up an application online wherein the information is validated and checked during the online session. As soon as you have entered all the information correctly, the EIN is issued immediately. This option is available for the citizens of the United States only.
Application via Telephone
You can also apply for the federal tax identification number through a toll free telephone service initiated by the IRS. You can find the details of the numbers and operating hours at the official website of IRS.
Application by FAX for EIN
This is another option to apply for a federal identification id. All you need to do is to fill out Form SS-4 to your state fax number. Make sure that your tax number is mentioned in the application and that all the necessary information on Form SS-4 is filled correctly. Once your fax is received by the authorities and the required procedure is done, they will send you a fax with the EIN within four business days, provided your application has all the required information. Check the website of IRS for details of Form SS-4.
Application for EIN by Mail
The procedure is the same as applying through FAX, just that instead of FAX, you are sending the application along with the correctly filled Form SS-4, through mail. This method takes a little more time as compared to others. The entire process for an EIN application through mail takes at least 4 weeks. You will be reverted back through mail with the EIN. Check the IRS website for details about Form SS-4.
Keep in mind that once you have received your EIN, be it through any means, it takes about 2 weeks for the EIN to be a part of the permanent records that the IRS has. So it is advisable to wait for two weeks to use your IRS related identification numbers for filing returns or paying tax. I hope this article proved to be of help.
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