EIN for non-profit is a Federal nine-digit taxation number that IRS assigns to the non-profits, charities, organizations and businesses in the following format i.e. XX-XXXXXXX. EIN is used to identify the tax account of employers and certain other organization who do not have any employees. Non-profit organization and charity are required to have their EIN prior to filing for tax exemption. IRS uses EIN or tax ID Number 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 organization are required to file Information Return 990, most commonly known as Form 990 at end of each year. Employee Identification Number is used by employers, no matter whether your business is sole-proprietor, corporation, partnership, non-profit organization, trust, estates of decedents or a government agency. Certain individuals and other business entities may apply for the Employer Identification Number.
How to apply for an EIN?
You can apply for an EIN in three ways i.e. by online, phone and mail or fax.
Apply for an EIN Online
In order to apply for an EIN online, you need to visit the IRS website. You need to click the option “Apply for an EIN online” link under the “Tools” section of the home page. Using of the online assistant as the preferred application method, according to the IRS website instructions for the Form SS-4. You need to fill the Form SS-4 and have to answer all the required questions such as your company name and its organizational structure. Make sure that you choose the “non-profit organization” as your business entity type. Download the proof of your Employee Identification Number i.e. EIN as a PDF file and print a copy for your company files.
Apply for an EIN by mail or fax
In order to apply for an EIN by mail or fax, first you need to download a copy of Form SS-4 from the IRS website. Enter your company’s contact information in the top part of the Form SS-4. Now select the “non-profit organization” as the type of business entity. You need to answer the required questions about your organization’s business activities. Sign and date at the bottom of the form and make a copy for your files. Now mail the completed Form SS-4 to the IRS office. You can also fax your Form SS-4 to the IRS to receive a faster reply. Basically you will receive a response within four business days if you faxed your application to the IRS. If you sent your application form by mail, the response may take up to four weeks.
Apply for an EIN by phone
In order to apply for an EIN by phone, you need to call the IRS business and specialty tax line between 07:00 a.m. to 10:00 p.m. Eastern Time. If your organization is not located in the 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. These questions will be similar to the Form SS-4. Write down the EIN you receive at the end of the call.