Employer identification number
Encyclopedia
Applicable to the United States
, an Employer Identification Number or EIN (also known as Federal Employer Identification Number or (FEIN)) is the corporate equivalent to a Social Security Number
, although it is issued to anyone, including individuals, who has to pay withholding tax
es on employees.
(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 entitles 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.
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. This is why the EIN is not considered sensitive information, and is freely distributed by many businesses by way of publications and the internet.
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 in what state the company registered the EIN Number. A business needs an EIN in order to pay employees and to file business tax returns. To be considered a Partnership, LLC, Corporation, S Corporation, Non-profit, etc a business must obtain an EIN. Those business that do not are considered proprietorships and the Owner / Operator SSN is used on any tax documents.
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. http://www.irs.gov/businesses/small/article/0,,id=169067,00.html
All IRS Form 990-registered charities must obtain proper registration via the Internal Revenue Service. Another source for verifying an entity's tax-exempt status is the IRS, itself, *IRS.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, an Employer Identification Number or EIN (also known as Federal Employer Identification Number or (FEIN)) is the corporate equivalent to a Social Security Number
Social Security number
In the United States, a Social Security number is a nine-digit number issued to U.S. citizens, permanent residents, and temporary residents under section 205 of the Social Security Act, codified as . The number is issued to an individual by the Social Security Administration, an independent...
, although it is issued to anyone, including individuals, who has to pay withholding tax
Withholding tax
Withholding tax, also called retention tax, is a government requirement for the payer of an item of income to withhold or deduct tax from the payment, and pay that tax to the government. In most jurisdictions, withholding tax applies to employment income. Many jurisdictions also require...
es on employees.
Other names
Also known as the Tax Identification NumberTax Identification Number
A Taxpayer Identification Number or TIN is an identifying number used for tax purposes in the United States. It is also known as a Tax Identification Number or Federal Taxpayer 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
Internal Revenue Service
The Internal Revenue Service is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue...
(IRS) to business entitles 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, corporationCorporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
s, partnership
Partnership
A partnership is an arrangement where parties agree to cooperate to advance their mutual interests.Since humans are social beings, partnerships between individuals, businesses, interest-based organizations, schools, governments, and varied combinations thereof, have always been and remain commonplace...
s, non-profit organizations, trust
Trust company
A trust company is a corporation, especially a commercial bank, organized to perform the fiduciary of trusts and agencies. It is normally owned by one of three types of structures: an independent partnership, a bank, or a law firm, each of which specializes in being a trustee of various kinds of...
s and estates
Estate (law)
An estate is the net worth of a person at any point in time. It is the sum of a person's assets - legal rights, interests and entitlements to property of any kind - less all liabilities at that time. The issue is of special legal significance on a question of bankruptcy and death of the person...
, 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. This is why the EIN is not considered sensitive information, and is freely distributed by many businesses by way of publications and the internet.
EIN format
The EIN system was created by the IRS in 1974 by Treasury Decision(TD) 7306, 39 Fed. Reg. 9946. The authority for EIN's is derived from 26 USC 6011(b), requiring taxpayer identification for the purpose of payment of employment taxes. The provision was first enacted as part of the revision of the Tax Code in 1954. This authority was broadened in 1961 by 26 USC 6109. An EIN is usually written in the form 00-0000000 whereas a Social Security NumberSocial Security number
In the United States, a Social Security number is a nine-digit number issued to U.S. citizens, permanent residents, and temporary residents under section 205 of the Social Security Act, codified as . The number is issued to an individual by the Social Security Administration, an independent...
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 in what state the company registered the EIN Number. A business needs an EIN in order to pay employees and to file business tax returns. To be considered a Partnership, LLC, Corporation, S Corporation, Non-profit, etc a business must obtain an EIN. Those business that do not are considered proprietorships and the Owner / Operator SSN is used on any tax documents.
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. http://www.irs.gov/businesses/small/article/0,,id=169067,00.html
| Campus | Code |
|---|---|
| Andover | 10, 12 |
| Atlanta | 60, 67 |
| Austin | 50, 53 |
| Brookhaven | 01, 02, 03, 04, 05, 06, 11, 13, 14, 16, 21, 22, 23, 25, 34, 51, 52, 54, 55, 56, 57, 58, 59, 65 |
| Cincinnati | 30, 32, 35, 36, 37, 38, 61 |
| Fresno | 15, 24 |
| Kansas City | 40, 44 |
| Memphis | 94, 95 |
| Ogden | 80, 90 |
| Philadelphia | 33, 39, 41, 42, 43, 48, 62, 63, 64, 66, 68, 71, 72, 73, 74, 75, 76, 77, 81, 82, 83, 84, 85, 86, 87, 88, 91, 92, 93, 98, 99 |
| Internet | 20, 26, 27, 45 (46 and 47 are being reserved for future use) |
| Note: Prefixes 26, 27, 45, 46 and 47 were previously assigned by the Philadelphia campus. | |
| Small Business Administration (SBS) | 31 |
Tax-exempt, charitable, non-profit organizations, and EINs
The issuance of an EIN to a non-profit organization is separate and distinct from the organization's actually obtaining tax-exempt status from the IRS. Each chapter of a national non-profit organization must have its own EIN, but the central organization may file for a group tax exemption. Before donating monies to a charity, it is advisable to verify its proper registration and IRS Form 990 tax-exempt status. The entire database is searchable, and one can verify an entity's registration, status, and assets and liabilities registered in private databases.All IRS Form 990-registered charities must obtain proper registration via the Internal Revenue Service. Another source for verifying an entity's tax-exempt status is the IRS, itself, *IRS.
EIN expiration
EINs do not expire. Once an EIN has been issued to an entity, it will not be reissued.See also
- CAGE CodeCommercial and Government EntityThe Commercial And Government Entity Code, or CAGE Code, is a unique identifier assigned to suppliers to various government or defense agencies, as well as to government agencies themselves and also various organizations...
issued by the Defense Logistics Information ServiceDefense Logistics Information ServiceThe DLA Logistics Information Service, or formerly the Defense Logistics Information Service provides logistics and information technology services to the United States Department of Defense, Federal agencies, and international partners.-External links:*...
(DLIS) to identify suppliers to the Department of DefenseUnited States Department of DefenseThe United States Department of Defense is the U.S...
. - D.U.N.S. number issued by Dun & BradstreetDun & BradstreetDun & Bradstreet is a Fortune 500 public company headquartered in Short Hills, New Jersey, USA that provides information on businesses and corporations for use in credit decisions, B2B marketing and supply chain management...
and required for certain U.S. government contractors and federal grant recipients - Confidential T.P.I.N. number issued by the Central Contractor Registry of the U.S. Government