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Thursday, June 24, 2021

FEIN Number – Why Is It Essential?

What Is A Fein Number?

In the USA, every individual citizen has an SSN or Social Security Number for identification. Similarly, for a  business to be identified in the U.S, there is a need for an Employer Identification Number or EIN. It is also known as Federal Employer Identification Number / FEIN / Federal Tax Identification Number.  Issued by the Internal Revenue Services, An employer Fein number is a 9 digit unique number used primarily for reporting/filing employment taxes. These numbers can never get expired and cannot be passed on to other businesses as well.

Who Is Eligible To Apply For Fein Number?

employer Fein numberEvery business needs to file a tax return annually, pay federal taxes, and issue tax documents and payrolls to suppliers for which they need an employer identification number. Any business that needs a FEIN number should be located in the United States of America. But the person who will be applying for an EIN should have his SSN. Any type of entity be it a Non-Profit Organization, Government agencies, corporations, LLCs, Partnership firms, or sole proprietorships, etc can apply for FEIN and be issued the same. There is no minimum requirement when it comes to the number of employees and the firm size. So, anyone who wanted to apply for EIN in the past had to mandatory fill IRS Form SS-4 but today, one can apply for FEIN online through a website

Where To Find The Federal Id Number?

People always have the question, “what is my federal id number”. Below are three options one can follow if they don’t remember their FEIN number.

  • Recheck the FEIN confirmation letter

Digging up the FEIN  confirmation letter can be the easiest go-to when looking for the lost federal ID Number. This document is originally issued by IRS at the time of applying for the federal number. Not only will it help to find the tax number for business but other similar information as well. There is an option to check the receipt that IRS usually issues immediately when applying online. Be it a confirmation letter through FAX, email, or any other form, one should make sure that they have sorted and kept this important document safely.

  • Check Other documents where FEIN can be there

One should not worry if their confirmation letter is misplaced. There are many other documents where the filers federal ID no. is mentioned. Here are few other documents where one can find the employer identification number:

  • Credit card report of the business
  • 1099 forms or other payroll paperwork
  • Old loan application of the business
  • Bank account statement or account profile available online
  • Permit and business license 
  • IRS tax notices that are official
  • Federal tax returns from the past
  • Calling Internal Revenue Service office

If a person fails to find the FEIN number in all the above documents, calling IRS can be their last resort. Calling the International Revenue Service office at 800-829-4933 during working hours can help to get the federal employment number immediately.

Here is an official link by IRS that will provide all the necessary things one should know when lost their FEIN number

How Can One Find The FEIN Number For Another Company?

In the above section, it was made clear how one can find their misplaced FEIN number. Now, let’s talk about where to and how to find a FEIN number for a different company?

Usually, a person needs a FIEN number of a third party to get the client’s access or information or for verifying a new supplier. Insurance companies need FEIN number of others in their day-to-day life.

  • One of the easiest ways to get the FEIN number of a company is by asking it from the accounts or payroll department of the same firm.
  • This is a website by the Securities and Exchange Commission that has much information including publicly traded companies EIN.
  • what is a Fein numberWebsites like Nav and Credit bureaus like Equifax and Experian lets one find a credit report for themselves or any other company for a small fee. The companies FIEN will always be included in their business credit report.
  • Here is a website that has an EIN database. It charges a minimal fee to help one find about a companies FEIN or other pieces of information as well.
  • If one wants to find the FEIN for non-profit organizations, the Melissa database is the perfect place to look at.

When Can One Change Or Cancel An EIN?

Usually, one does not change or cancel their FEIN. FEIN is noon recyclable and stays throughout. But in some situation, one might have to change it because:

  • They changed their business entity or incorporated it for the first time
  • They inherited a business or bought an existing firm from a party
  • The business is subsidized under another company
  • There is only a sole proprietor whose business is bankrupt or he/she is planning to retire or share profits with a new partner or pension plans
  • The secretary of state of the business sends a new charter
  • There is a plan to change the ownership structure of the firm

The older EIN can never get closed no matter what. What one can do is, apply for a new one and use it in all the paperwork instead.

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Daniyel Carlson
Daniyel Carlson is a Young Researcher in the field of Data Science & Analytics having research experience of more than 8 years. He has a Masters in Computer Engineering and currently serves as an Editorial Assistant in IGI Global, United States of America. Daniyel also holds honorary positions in the Associate Member of Institute of Research Engineers and Doctors, International Association of Computer Science and Information Technology, International Association of Engineers, Society of Digital Information and Wireless Communications.

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