Federal ID Number

What is a Federal ID number?

A Federal ID number, also known as a Federal Tax Identification Number, or Federal Employer ID, is a nine-digit number issued by the IRS. It’s arranged as 00-0000000. It’s used to uniquely identify a business entity and appears on your pay stub.

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Are Federal ID numbers the same as an EIN?

Federal ID numbers and Employer Identification Numbers (EIN) are the same and may be used interchangeably.

How many digits is an EIN?

An EIN or Federal ID number is nine digits long, with two starting numbers followed by seven more digits.

Is a payer’s TIN the same as a Federal ID number?

No. Tax Identification Numbers (TIN) and Federal ID numbers are related, but  they are not the same.

TIN is an umbrella term for a group of identification numbers the IRS uses to administer tax laws. Federal ID numbers are a type of TIN. The IRS recognizes a wide variety of TINs, including Social Security Numbers.

These numbers must be furnished when asked on tax returns as well as on withholding certificates under certain circumstances.

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What is a Federal Tax ID number used for?

Like Social Security Numbers for individuals, Federal Tax ID numbers are primarily used to help the IRS easily identify a business for federal tax purposes. This number can also be used for other business-related financial activities, including opening a business bank account, applying for a business loan, and employee payroll distribution tracking.

How do you get a Federal ID number?

You can apply online to receive a Federal ID Number. To make it simple, the IRS has outlined a three-step EIN application process:

1. Determine your eligibility

You're eligible to apply for a Fed ID if you meet the following criteria:

Note that the responsible party must be an individual and can't be a business entity.

2. Complete the online application

You must complete the application in one sitting—you can't save it and come back to it later. The application will close if you're inactive for more than 15 minutes, forcing you to start over.

3. Receive your Federal ID number

After you submit your application, your number will become available immediately. You can use this number to open bank accounts, file tax returns, and apply for business licenses.

If your business ownership or structure changes, you need to apply for a new Employer Identification Number.

Where can you find your Federal ID number?

There are several places where you can find your Federal ID Number:

If you don’t have access to any of these business or tax documents, you can also request help from the IRS to look up your Federal Identification Number. You can call the IRS helpline at (800) 829-4933.

How to close a Federal Tax ID number

You can't close or cancel a Federal Tax ID number once it's been issued. It's the IRS’s permanent identification number for a business entity, and it'll never be reassigned to another business.

However, if you determine you no longer need a Federal Tax ID, you can ask the IRS to deactivate it. Simply write a letter to the IRS with the following information:

Send this information to the IRS:

Internal Revenue Service

MS 6055

Kansas City, MO 64108

Or

Internal Revenue Service
MS 6273
Ogden, UT 84201

It is important to note that your tax filings must be up to date before the IRS can close your business account.

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