EIN Verification: Frequently Asked Questions [And Quick Solutions]

If there was a contest for the most misunderstood business requirement, EIN verification would probably win first place. 

And second place. And maybe even third. 

It’s that one process that everyone deals with but nobody really talks about – kind of like your company’s coffee machine that’s been making strange noises for months.

However, EIN verification isn’t that tough. 

Whether you’re a startup disrupting the status quo or have been around since before the internet was cool, these FAQs are about to make your life a whole lot easier.

Here are answers to 12 most commonly asked EIN FAQs.

1. What does EIN mean?

An Employer Identification Number (EIN) is a special nine-digit number given by the Internal Revenue Service (IRS) to recognize businesses for taxation reasons. An EIN functions as your company’s federal tax identification number, just like an individual’s Social Security number. This number is used by the IRS to keep track of all your payroll tax submissions, company tax filings, and other federal tax responsibilities. 

2. What is an example of an EIN number?

An EIN always follows the format XX-XXXXXXX, where X represents numerical digits. For instance, a typical EIN structure would look like 12-3456789. The first two digits, known as the EIN prefix, are assigned based on various IRS internal criteria, while the remaining seven digits are sequentially assigned. 

While the format remains consistent across all EINs, each number is unique to a specific business entity. For security and privacy reasons, it’s crucial never to share or publicly display your actual EIN, as it could lead to tax fraud or identity theft.

3. Who needs an EIN?

Any business operating in the United States must obtain an EIN if they have employees, operate as a corporation or partnership, or file certain tax returns. This requirement applies to small businesses, large corporations, non-profit organizations, and even sole proprietors with employees. 

Additionally, you need an EIN if you’re withholding taxes on income (other than wages) paid to a non-resident alien, managing a Keogh plan, or involved with trusts, estates, real estate mortgage investments, farmers’ cooperatives, or plan administrators. 

Even if you’re a sole proprietor without employees, getting an EIN can help separate personal and business finances.

4. When to get a new EIN?

Businesses must obtain a new EIN whenever they undergo significant structural or ownership changes. 

 

Situation	Requires New EIN?
You change your business structure (e.g., from a sole proprietorship to an LLC).	Yes
You change the ownership of your business (e.g., adding new partners).	Yes
Your business declares bankruptcy.	Yes
Your corporation undergoes a merger.	Yes
You change your business name.	No
You change your business location.	No
You are a surviving corporation after a corporate merger.	Yes
You choose to be taxed as an S corporation.	No
You reorganize to change only your identity or location.	No
You convert your business at the state level without changing your business structure.	No
A corporation receives a new charter from the secretary of state.	Yes

5. How do I get my EIN number?

You can apply for an EIN for free through the IRS. There are four ways to apply:

• Online: The fastest and most convenient way to apply for an EIN is online through the IRS website. You will receive your EIN immediately upon submitting your application. However, online application is only available for businesses located in the United States or US Territories.
• By mail: You can download Form SS-4, Application for Employer Identification Number, from the IRS website, complete it, and mail it to the appropriate IRS address. This method typically takes about four weeks to receive your EIN.
• By fax: You can fax a completed Form SS-4 to the IRS. If you include a return fax number on your application, you will receive your EIN in about four days.
• By telephone: International applicants can apply for an EIN by telephone. You will need to call the IRS and provide the necessary information to the assistor.

Regardless of the method you choose, you will need to provide basic information about your business, such as the legal name, address, and type of entity.

6. What is an EIN verification form?

An EIN verification form, officially known as Form CP 575 or EIN Verification Letter (147C letter), is an official IRS document that confirms your business’s tax identification number. This document serves as formal proof of your EIN for various financial and tax-related activities, such as opening bank accounts, applying for business licenses, or verifying your business identity with vendors. 

To obtain this form, you can request it directly from the IRS by completing Form SS-4. The IRS will mail this verification letter to the business address listed on line 4 of your SS-4 application.

7. Is EIN only for US companies?

While EINs are primarily associated with US businesses, they’re not exclusive to domestic companies. Foreign individuals and entities conducting business activities in the United States that require US tax compliance can and often must obtain an EIN. This includes non-resident aliens, foreign corporations, and international entities with US-based operations. 

The IRS provides specific pathways for international applicants to obtain EINs, though the application process may differ slightly from domestic applications. Foreign entities typically need an EIN when they have US source income, employ US workers, or operate within the US market.

8. When to use EIN?

An EIN serves as your business’s identifier in numerous crucial transactions. You’ll primarily use it for filing various business tax returns with the IRS, but its applications extend far beyond basic tax reporting. 

Banks require your EIN when opening business accounts, which helps separate personal and business finances. When hiring employees, you’ll need it for payroll processing and tax reporting. 

Also, your EIN is essential for obtaining business licenses, establishing business credit, applying for loans, and entering contracts with other businesses. Many vendors require it for W-9 forms, and using your EIN instead of a Social Security number helps protect against identity theft.

9. What to do if I forgot the EIN number?

Lost track of your EIN? Several reliable methods exist to retrieve it. Start by checking previous tax returns, bank statements, or your original IRS confirmation letter. If you’ve misplaced these documents, locate the computer-generated notice the IRS issued when you first applied for your EIN. 

Another option is contacting banks or licensing agencies where you’ve used the number. As a last resort, call the IRS Business & Specialty Tax Line at 800-829-4933 – their assistors can help authorized individuals recover the number. Remember to keep your EIN in a secure location once recovered to avoid future issues.

10. When can I use EIN to make tax deposits?

You can begin using your EIN for tax deposits immediately after receiving it from the IRS. The system automatically enrolls businesses that indicate they’ll have employees in the Electronic Federal Tax Payment System (EFTPS). 

However, there’s an important caveat: wait for the EFTPS enrollment confirmation and Personal Identification Number (PIN), which typically arrives by mail within a few days. 

If you need to make a tax deposit before receiving these materials, you can submit payment to the appropriate IRS service center using a check or money order payable to the “United States Treasury.”

11. Is my EIN valid?

Verifying your EIN’s validity involves checking several key factors. The most reliable method is performing a TIN match search through the IRS TIN Matching Program, which compares your EIN and business legal name against IRS records. A valid EIN must follow the correct format (XX-XXXXXXX), be officially assigned by the IRS, remain uncancelled or unrevoked, and match current IRS records. 

You can also confirm validity by calling the IRS Business & Specialty Tax Line or using their online verification tools. Remember that an EIN remains valid indefinitely unless specifically revoked by the IRS.

12. How can I verify an EIN number?

Several reliable methods exist for verifying an EIN’s authenticity. 

• EIN validation letter: You can request the EIN validation letter that the business received from the IRS. This letter serves as official confirmation of the EIN.
• Contact the company: You can contact the company directly and request their EIN. However, they may not be willing to share this information with you. EINs might be publicly available on business documents, websites (such as the “About” or “Contact Us” page), or through direct contact with the company.
• IRS Business & Specialty Tax Line: You can call the IRS Business & Specialty Tax Line at 800-829-4933 to verify an EIN. An assistor will ask for identifying information and will only provide the EIN to an authorized person representing the business.
• Public records: For publicly traded companies, you can find their EIN in their filings with the Securities and Exchange Commission (SEC) through the EDGAR system.
• IRS Tax Exempt Organization Search: For charitable organizations, you can verify their EIN using the IRS Tax Exempt Organization Search tool.
• Third Party Service Providers: If you want to verify your customers or at scale, various third-party service providers like SIgnzy offer EIN verification APIs, though these typically involve fees. 

Remember to protect your EIN during the verification process to prevent potential fraud.