Nonprofit Tax IDs

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Nonprofit corporations must obtain tax IDs to identify themselves on federal and state taxes. Nonprofit tax IDs include a federal tax identification number and state tax identification number.

Myth

It is a myth that tax exemption changes your tax ID. Tax exemptions will NOT change your IDs or result in separate nonprofit tax identification numbers.

Federal Tax ID

The IRS requires that new nonprofit corporations obtain an Employer Identification Number (also known as a federal tax identification number, FIN, FTIN, EIN, or FEIN). Your nonprofit will use this when paying taxes, opening a bank account, and hiring employees. It is like an SSN for your organization. Obtain an EIN by filing Form SS-4 with the IRS.

State Tax ID(s)

Each state will also issue one or several tax identification numbers to your business. For example, the Pennsylvania Department of Revenue requires organizations to register for each tax account they need and will issue a separate identification number for each account. Some states will automatically communicate your registration to the state department of revenue and issue your corporate tax ID(s). Remember to check the procedures for each state in which your nonprofit operates.

Key Takeaways:

  1. Obtain an EIN for federal tax purposes.
  2. Register with the department of revenue in each state where your nonprofit has a presence to obtain state tax ID(s).

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