Reminder: Only Individuals with Tax ID Numbers Can Request Employer Identification Numbers (EIN)

NSTPEIN, Internal Revenue Service (IRS)

Reminder: Only Individuals with Tax ID Numbers Can Request Employer Identification Numbers

Reminder: Beginning May 13, only individuals with tax identification numbers may be the responsible party on an application for an Employer Identification Number (EIN). Click here for article.

Background. Under Code Sec. 6109(a)(1), individuals and entities are required to include identifying numbers on returns, statements, and other documents filed with the IRS. Generally, the IRS assigns an EIN to entities for tax filing and reporting purposes. An entity may apply for an EIN using Form SS-4, Application for Employer Identification Number, or the IRS's online form. (Reg. §301.6109-1(d)(2)(i))

Procedural change. In IR 2019-58, 3/27/2019, the IRS announced that, beginning May 13, only individuals with a Social Security Number (SSN) or an individual taxpayer identification number (ITIN) may be the responsible party on an EIN application. This change prohibits entities from using their own EINs to obtain additional EINs. The new requirement applies to both the paper Form SS-4, and the IRS's online EIN applications.

The new requirement will provide greater security to the EIN process by requiring an individual to be the responsible party and improve transparency. If there are changes to the responsible party, the entity can change the responsible official designation by completing Form 8822-B, Change of Address or Responsible Party . A Form 8822-B must be filed within 60 days of a change.