September 11, 2009, Newsletter Issue #184: Employer Identification Number Form

Tip of the Week

The IRS needs every taxpayer to have a number that specifically applies to him or her. This is how any form of IRS communication is processed, or any tax form is processed.

The IRS Form SS-4 (Application for Employer Identifying Number) is used if you want to obtain an Employer Identification Number. In technical lingo, the Employer Identification Number is also known as the EIN. It is your tax id number.

You can obtain the SS-4 form either online at the IRS website or by filling out the SS-4 paper tax form. Of course, if you file for this number electronically, you will receive your identifying number quicker.

For either method of application you choose for your EIN, you will need to have the following information on hand.

Your nameYour business name if you operate as a DBA (doing business as)Your business addressYour form of ownership (sole proprietor, partnership, LLC, corporation). This is also called the ‘type of entity’.Reason for applying: Change type of organization (sole proprietor to LLC, i.e.), you hired employees, and/or you started a businessDate the business started. Once you have obtained your EIN, you will use it on any income tax return you file with the IRS. You also will use it anytime you need to contact the IRS. For more information on the EIN application process and how it affects you, visit the IRS website.

If you have hired someone to perform household duties, and pay them more than $1,500 in 2006, you need an EIN. You are considered an employer and need to withhold payroll taxes. You will have tax filing and

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