An Employer Identification Number (EIN) is vital for almost all types of business. This unique number provides your company credibility, allows you to apply for business licenses, open a business bank account, file tax reports, and file electronic tax payments and returns. An EIN number is also needed if you are an executor of an estate or control a trust. IRS-EIN-Tax-ID provides an easy and safe way to apply for an EIN for your business, trust, as well as an EIN number for an estate.
Inactive Employer Identification Numbers
Simply put, once an EIN has been assigned to your business entity, it becomes that entity’s permanent Federal taxpayer identification number. The Internal Revenue Service (IRS) does not cancel EINs regardless if it is never used. This none-digit number is never reused or reassigned to another entity. The EIN can be used for that entity again at a later date, should the owner need it.
However, if you obtained an EIN but later decided it is not needed, for whatever reason, you can choose for the IRS to close your business account. To do so, send a letter to the IRS that includes the EIN, legal name of the business, the address of the business, and a reason for closing your account. Also, include a copy of the EIN Assignment Notice if possible.
Businesses Required to Apply for EIN
If your business falls under any one of these situations, an EIN is required:
- You have employees
- Business is a partnership of corporation
- You withhold non-wage income paid to a non-resident alien
- You run a farmers’ cooperative or non-profit organization
- You have Keogh plan
- You are a plan administrator
- You file tax returns for excise, alcohol, firearms, and tobacco
- Have an estate
You must also obtain an irrevocable trust tax ID number if you are a grantor of an irrevocable trust.
To learn more about EINs or how to easily apply, visit the IRS EIN Tax ID website.