Form SS-4, issued by the Internal Revenue Service (IRS), is the application form used by entities to apply for an Employer Identification Number (EIN). The EIN is crucial for various administrative and tax purposes. It serves as a unique identifier for businesses, much like a Social Security Number functions for individuals.
Detailed Description
Purpose of Form SS-4
Form SS-4 is used by businesses, non-profits, trusts, estates, partnerships, and other entities to obtain an EIN. The EIN is required for:
- Filing taxes
- Opening business bank accounts
- Applying for business licenses
- Hiring employees
- Establishing company credit
Applicability
Any entity that requires a unique identification number for tax filing and business operations in the United States must fill out and submit Form SS-4. This includes both domestic and foreign entities.
Key Sections of Form SS-4
Basic Entity Information
The form collects essential information such as the legal name, trade name, address, and type of entity.
Purpose for Applying
Here, the applicant must specify why they are applying for an EIN, which may include starting a new business, hiring employees, banking purposes, creating a trust, etc.
Responsible Party
The form requires details of the individual who is the responsible party for the entity, often the principal officer or owner.
Historical Context
The use of EINs dates back to when the IRS needed a systematic way to identify businesses for tax administration. The form ensures that each entity has a unique identifier, simplifying tax reporting and compliance processes.
Frequently Asked Questions (FAQs)
How do I submit Form SS-4?
Form SS-4 can be submitted online via the IRS website, by fax, or through mail. Online applications typically provide an EIN immediately.
What is the processing time for Form SS-4?
Online applications are instantaneous, while fax and mail requests can take 1-2 weeks and up to 4-5 weeks respectively.
Is there a fee for applying for an EIN?
No, the IRS does not charge a fee for issuing an EIN.
Special Considerations
- Accuracy: Ensure all information is accurate to avoid processing delays.
- Responsibility: The individual listed as the responsible party should have significant control over the entity’s finances.
Examples
Example 1: New Business
A new sole proprietorship requires an EIN to open a business bank account. The owner fills out and submits an online Form SS-4 and receives the EIN immediately.
Example 2: Trust Establishment
A newly formed trust needs an EIN for tax reporting. The trustee completes Form SS-4 and mails it to the IRS. They receive their EIN within four weeks.
Related Terms
- TIN: Taxpayer Identification Number, a general term for a variety of identification numbers used in the administration of tax laws. This includes EIN and Social Security Number (SSN).
- SSN: Social Security Number, a nine-digit number issued to U.S. citizens, permanent residents, and certain temporary residents.
Summary
Form SS-4 is an essential IRS document used by various entities to obtain an Employer Identification Number (EIN). The EIN serves numerous administrative and tax purposes, and acquiring one is an integral step in establishing and running a business in the United States.
References
- Internal Revenue Service. Instructions for Form SS-4, Application for Employer Identification Number. IRS. [Link to IRS form and instructions page]
By following the steps and guidelines provided in Form SS-4, entities can efficiently acquire their EIN, ensuring they meet necessary regulatory and operational requirements.
