Most business-related IRS tax forms require the taxpayer’s EIN, or employer identification number. The Employer Identification Number is also known as the Federal Tax Identification Number used to identify a business. Most business are required to have an EIN because it demonstrates the Internal Revenue Service’s approval of a given company. Here is the criteria that requires a business to be in possession of an EIN: having employees on payroll, operating a business as a corporation or a partnership, filing the employment or alcohol, tobacco and firearms tax returns, withholding taxes on income paid to a non-resident alien, possessing a Keogh plan or being involved with trusts, estates, real estate conduits, non-profit organizations, farmers’ cooperatives and plan administrators.
EINs cannot be pulled from thin air, they have to be assigned to a business by the IRS once they apply for the number, whether it be online or at a local IRS office. Applying for an EIN through the Internet is the most preferred method for customers attempting to obtain the identification. The best part about the online application process is its speed and efficiency. Once the user submits their information, an EIN is issued instantaneously. The online application is available to all businesses or organizations that are located within the United States or its territories. However, the contact person for the EIN must have a valid Taxpayer Identification Number, which could be a social security number or an individual taxpayer identification number, in order to use the online application.
Before 2001, the first two digits of an EIN (the prefix) indicate the geographic location of the respective business. Since then, the prefix no longer has the same significance. The EIN prefix now only indicates which IRS base assigned the identification number. Each IRS base has certain prefixes available for use, and even prefixes that are solely for use by the online application and the Small Business Administration.
When e-filing a 2290 form for 2012/2013 on ETax2290, it is imperative that the EIN is inputted into our system correctly or the IRS will immediately reject the application. If you have any issues with your EIN, do not hesitate to call our support staff at 703-229-0326.