A Personal Guideline On EIN Verification Lookup

By Harris Walker
Updated February 1, 2017
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A Personal Guideline On EIN Verification LookupEINs (Employer Identification Numbers) or FTINs (Federal Tax Identification Numbers) are very important numbers. The IRS (Internal Revenue Service) uses these numbers in order to confirm the identity of a certain business. Usually, every business is required to have an EIN. If you are a business, therefore, you need to apply for one. There are several ways in which you can do this, including online. The IRS offers this service for free, and they will provide you with an EIN number as soon as you apply for one. However, before you do so, you must also look into your state regulations, as they may require you to have either a charter, or a state number.

What If You're Tax Exempt?

One reason to complete an EIN verification lookup is because you may not need an EIN at all, and you need to know what your current status is. It is vital that you complete all the right steps when you form a business, so that the formation is actually legal. Do this before you apply for your EIN. Did you know, for instance, that if you are tax exempt but you do not file a notice or required return for three years in a row, you will automatically and instantly lose your tax exempt status? When you put in an application for an EIN, the assumption will instantly be that you have a legally formed status. This also means that the three year clock will start ticking straight away.

Change of Structure or Ownership:

If your business' structure or ownership changes, you will likely need a new EIN. There are plenty of resources available online, including on the IRS website, that will explain to you whether or not you need to request for a new EIN. Again, this is why you may need an EIN verification lookup, so that you know for sure your EIN actually refers to your business. You can also use this service if you have misplaced or lost your EIN.

EIN Lookup Daily Limitation:

Since May 21, 2012, the IRS has limited how often people can perform an EIN verification lookup. The new regulations determined that only one EIN can be provided to a single responsible party each day. This was done so that all taxpayers could be assured of fair and equitable treatment. It doesn't matter whether you apply for your EIN online, by telephone, or by post, you can only apply for it once. Additionally, you have to be the "responsible party". This means that you are the owner of the business, or that you have been specifically authorized to speak on behalf of the company to the IRS.

EIN numbers are very important pieces of identification. If you run a business, it is likely that you will have an EIN number, so do go through your paperwork to see if you have misplaced it somewhere. While the IRS is able to provide you with you number in other ways, this can be lengthy and complex process.





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