The Employer Identification Number (or EIN), (also sometimes called the Federal Employer Identification Number or FEIN), is a corporate equivalent to the social security number, issued to anyone paying employees withholding taxes. The EIN is a nine digit number that is assigned to employers, sole proprietors, business entities, government agencies, estates and trusts, partnerships and non-profit organizations by the IRS. The IRS use the Employer Identification Number to identify and record which taxpayers need to file tax returns for their businesses. The businesses themselves are required to get EIN’s in order to be able to file business tax returns and to pay their employees. Businesses that do not get themselves Employer Identification Numbers will end up being classed as proprietorships and the owner’s personal Social Security Number will be the number used on any tax forms.
So how do you know if your business qualifies and you need an EIN? You will need an EIN if you answer yes to any one of the next few questions: Are you involved with one of the following kinds of organizations? Trusts, excepting some grantor-owned revocable trusts, Exempt Organization Business Income Tax Returns, IRAs, Conduits for Real estate mortgage investment, Organizations that are Non-profit Estates, Farmers’ cooperatives, Plan administrators. Whether your business is to be a partnership, LLC, Corporation or S Corporation or a non-profit organization, you must obtain an EIN Identification Number.federal-tax-identification.com/einonline/employer-identification-number-overview/
The IRS provides all the information needed for taxpayers in case they want to verify or check their details before they file their income tax returns. IRS individual taxpayers can look at the list below of common IRS individual taxpayer questions as well as their appropriate answers. Hopefully this article would be able to help existing IRS individual taxpayers who are not well-versed on the processes of the IRS and also would help the first time IRS individual taxpayers and provide them with the best answers to their questions.