Employer Identification Number (EIN)

A Federal Employer Identification Number (FEIN), or Federal Tax Identification Number (FTIN), is a nine-digit number assigned to businesses operating in the United States by the Internal Revenue Service (IRS). In the context of identification rather than employment tax reporting, this number is called a Taxpayer Identification Number (TIN). It is generally referred to as an Employer Identification Number when used to report employment taxes.

It must not use for anything else except tax administration. Having an Employer Identification Number (EIN) for a non-profit organization is different and distinct from the organization receiving tax-exempt status from the IRS. The use of an EIN by a non-profit organization is prohibited at tax lien auctions and sales, or in lotteries, as examples. The central organization may file for a group tax exemption for all chapters of the national non-profit organization, but each division of the organization requires its own EIN.

To make sure that the charity has a proper EIN registration, use the IRS Tax Exempt Organization Search, as well as the IRS Form 990 to verify that the donation is tax-exempt. Tax Exempt Organization Search allows users to search the entire database of tax-exempt organizations to check an organization’s registration, assets, and liabilities.

Before applying for an EIN, an organization must register as a corporation. When a tax-exempt organization fails to file a necessary return or notice for more than three consecutive years, its status terminates automatically. The three-year period begins when the organization is legally incorporated. It is best to form the organization legally before applying for an EIN.

Expiration of Employer Identification Number

Employer Identification Number never expires. It will not be possible to reissue a social security number once assigned. You cannot cancel or change your EIN unless you have specific reasons for doing so. Purchasing or becoming a subsidiary of another business may require you to change your Employer Identification Number (EIN) number. In addition, if the ownership structure of your company changes, or if you are a sole proprietor undergoing bankruptcy proceedings, your EIN may also need to be changed. The IRS still needs to be informed of the name or location changes youmake.

Your EIN does not need to be changed if you change your location or name. You can report a change of address using IRS Form 8822 B. Getting a new EIN will automatically replace your old one, so you don’t have to cancel/deactivate it. There is no way to cancel an EIN technically. The IRS closes your account when you end a business or when you never got going. However, you can ‘reopen’ this account and re-use its EIN. Two business entities can never be assigned the same EIN number. A separate company requires a unique EIN unless it is combined into one company with a different legal identity.