Employer Identification Numbers Case Study

Satisfactory Essays
Do you need an Employer Identification Number (EIN) for your nonprofit organization? You may be required to get an EIN for any number of reasons, such as:
• Hiring employees
• Forming a corporation
• Forming a partnership
• Buying a business
• Starting a retirement plan
• Filing excise tax returns
• Opening a business bank account
There are four ways to get an EIN.
1. Apply online.
Go to the IRS website and complete the application online. This is the fastest way to obtain an EIN because once the application is completed, the information is validated during the online session, and an EIN is issued immediately. You can then download, save, and print your EIN confirmation notice. It doesn't take very long to do this, and the IRS screens
…show more content…
- 10:00 p.m., Monday through Friday. An IRS employee takes the information, assigns the EIN, and provides the number to an authorized individual over the telephone, so this is also a quick method, provided you have all the information assembled beforehand.
3. Apply by FAX
Fill out Form SS-4 and fax it to the appropriate IRS fax number. To find the fax number for your state, visit the IRS website. If you provide a fax number, you will receive the new EIN via return fax within four business days, otherwise it will be mailed to you.
4. Apply by Mail
Fill out Form SS-4 and mail it to the IRS. It takes four (4) weeks for the IRS to process a mailed Form SS-4, so obviously this is the least desirable method.
If you're not inclined to tackle this task yourself, you can authorize a third-party (such as your accountant or CPA) to submit the EIN application for you. Check with your tax professional for details.
One final note
Regardless of how you apply (online, phone, fax, snail-mail), it will take up to two weeks before your EIN becomes part of the IRS' permanent records. You must wait until this occurs before you can file an electronic return, make an electronic payment, or pass an IRS Taxpayer Identification Number matching
Get Access