IRS Revises Employer Identification Number “EIN” Application Process

The IRS EIN number application process has been revised.

Starting May 13, 2019, only individuals with a US tax identification number may request an EIN as the responsible party on the application. Previously, non-US entities were able to obtain an EIN without a US tax number from the responsible party. The IRS has stated that the rationale for this new requirement is that it will provide greater security and transparency.    

The responsible party is the person who ultimately owns or controls the entity. With the new requirement, the responsible party must have either a Social Security Number “SSN,” or an Individual Taxpayer Identification Number “ITIN.” The process of obtaining an ITIN is time-consuming and onerous. Therefore, if you believe you may need an EIN in the near future, we recommend applying before the rules change on May 13, 2019.

If you still have questions about the revisions to the IRS EIN number application process or if you need help to apply for an EIN, please contact our Vancouver office at 1-604-714-3600.

This content is believed to be accurate as of the date of posting. Tax laws are complex and are subject to frequent change. Professional advice should be sought before implementing any tax planning. Manning Elliott LLP cannot accept any liability for the tax consequences that may result from acting based on the information contained therein.