EIN for non-profit is a Federal nine-digit unique taxation number issue by IRS. This EIN is assign by IRS to the non-profits, charities, organizations and businesses in the format i.e. XX-XXXXXXX. EIN is used to identify tax account of employers and certain other organization who do not have any employees in the organization. Non-profit organization and charity are required to have EIN prior to file tax exemption of an organization. IRS uses EIN or Tax ID Number of an organization so as to identify their taxpayers to file their business tax return.
Do non-profit organization need to have an EIN?
In the case of charities, tax-exemption non-profit organizations are required to file Information Return 990, also known as Form 990 at end of each year. In addition to this, the employer EIN is for employees and it allow IRS to do the verification of a business. More than this, EIN is needed for every business owner but if in the case of sole-proprietor, there is no need for EIN. But it is for those businesses with corporations and partnerships, who have more employees.
How to apply for an EIN?
One can apply for an EIN for the business entity in three ways i.e. by online, phone, and mail or fax.
Apply for an EIN via Online
In order to apply for an EIN Online, one needs to visit the IRS website. Therefore, get EIN by clicking on the “Apply for an EIN online” link. It will reflect below the section is shown “Tools” section. Use the online assistant as the preferred application method, according to the IRS website instructions for filling up Form SS-4. You need to fill the Form SS-4 and have to answer all the questions such as your company name and its organizational structure. Make sure that you choose the “non-profit organization” as your business entity type. Therefore, you need to Download the proof.
Apply for an EIN number via Mail or Fax
In order to apply for an EIN by mail or fax, first, you need to download the Application Form SS-4 from the IRS website. Fill in your company’s contact information in the top part of the Application Form SS-4. Now select the “non-profit organization” as the type of business entity. Fill in all the details about your organization’s business activities that IRS asked you in the application form. Now sign and date at the bottom of the Application Form SS-4 and make a copy for all your files.
Mail the completed Application Form SS-4 to the IRS office mailing address. You can also fax your Application Form SS-4 to IRS so as to receive a faster reply. An individual can receive a response from IRS within four business days if you send your application to the IRS by fax. But if you sent your application form to IRS by mail, then the response may take upto four weeks.
Apply for an EIN via Phone
In order to apply for an EIN for the business entity by phone, you need to call IRS business and specialty tax line between 07:00 AM to 10:00 PM (Eastern Time). If your organization is not located in US, then you need to call the international line. You need to answer a series of questions about your non-profit organization and its operations that IRS representative ask you over the phone call. These questions that IRS representative ask you over the phone call will be similar to the Application Form SS-4. Write down the EIN that IRS representative will issue at the end of the call.