Nonprofit Tax IDs

Nonprofit corporations must obtain a tax identification (ID) number to identify themselves on both federal and state taxes. Tax exemption will not change your tax ID number or result in separate nonprofit tax ID numbers.

On the federal level, the IRS requires that new nonprofit corporations obtain a Federal Employer Identification Number (FEIN). Your nonprofit will use this when paying taxes, opening a bank account, and hiring employees. This number is like a social security number for your organization. Your FEIN can be obtained by filing Form SS-4 with the IRS.

States will also issue one or several tax identification numbers for 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). Don’t forget to check the procedures for each state in which your nonprofit operates.

Key Takeaways:

1. Nonprofit corporations must obtain tax identification numbers
2. The procedures in each state for tax identification numbers may vary.
3. Tax exemption will not change your tax ID number.