The Internal Revenue Service recently announced that beginning May 13, corporate entities will no longer be allowed to use their existing Employer Identification Number (EIN) to obtain an EIN for another entity. Only individuals with tax identification numbers may request an EIN as the “responsible party” on the application.
The changes to the IRS rules are geared around enhancing security, particularly surrounding international companies planning to do business in the United States. While the full impact of these changes remains to be seen, applicants that cannot provide a valid Social Security Number or Individual Taxpayer Identification Number at the time of applying for an EIN (or by filing Form SS-4), likely will not meet the requirements and won’t be issued an EIN.
The IRS is giving a few weeks’ notice so that international individuals and companies have time to identify a responsible party that meets the new requirements. We encourage clients to review the full text of the update and contact the appropriate counsel for guidance on their specific situation.
To learn more about EINs, visit our online guide. If you would like help applying for an EIN or registering for taxes, give us a call, 1-888-995-5895, or get in touch.
Harbor Compliance is not an accounting or law firm and does not provide tax, financial, or legal advice.
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This website uses cookies. We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners who may combine it with other information that you’ve provided to them or that they’ve collected from your use of their services. You consent to our cookies if you continue to use our website.
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The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
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The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.