As a non-profit organization, compliance with Internal Revenue Service requirements is paramount. To be seen as a positive non-profit, one that is in good standing with the IRS, you need a Tax ID (EIN) Number for tax administration purposes.
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Steps to Applying for Tax ID (EIN) Number for a Non-Profit Organization
- Prepare Mandatory Business Information
- Apply for a Non-Profit Organization Tax ID (EIN) Number Online
- Apply for a Non-Profit Organization Tax ID (EIN) Number via Mail or Fax
- How Do I Obtain a Tax ID (EIN) Number for my Non-Profit Organization?
- How Long Does it Take to Obtain a Tax ID (EIN) Number for my Non-Profit Organization?
- Why Do I Need a Tax ID (EIN) Number for my Non-Profit Organization?
1. Prepare Mandatory Business Information
The initial starting point to obtain a Tax ID (EIN) Number for a non-profit organization is to get all of the mandatory business information together. Gathering all of the mandatory business information lets you go through the application process easier. The information will include details on the responsible party of the non-profit organization, address, as well as other pertinent details.
The responsible party is the biggest piece of the puzzle when it comes to obtaining a Tax ID (EIN) Number for a non-profit organization. The Internal Revenue Service will be looking for a responsible party name and it needs to be an individual, not an entity. The individual needs to have a Social Security Number or an ITIN to go through the process. The responsible party is the individual with the ability to do all communication with the Internal Revenue Service. The responsible party also has the ability to control and manage all of the assets of the non-profit organization.
The remainder of the non-profit organization details you need include things such as the address of the non-profit as well as the main purpose of the organization. This is all information the Internal Revenue Service is looking to obtain to log for tax administration purposes, to see if what the business is doing is in-line with the information you provide.
2. Apply for a Non-Profit Organization Tax ID (EIN) Number Online
Non-profit organizations have a variety of options when it comes to obtaining a unique nine-digit Tax ID (EIN) Number from the Internal Revenue Service. In recent times, the online application method continues to garner the most attention and is arguably the most popular at this point. The online application provides you a vehicle to easily and quickly apply for and obtain a Tax ID (EIN) Number for your non-profit organization.
The online application will involve you taking the mandatory business information and inputting it into the online site of the Internal Revenue Service. The virtual form has a set up where you can enter all of the details pertaining to the responsible party, to the business in general, right through the virtual application.
To apply for a Non-Profit tax ID (EIN) number online, you want to have your organization information on hand:
- Organization as is or will be registered with your state.
- Responsible Party information including:
- Legal Name
- Social Security Number
- Physical Business Address
- Contact Phone Number
3. Apply for a Non-Profit Organization Tax ID (EIN) Number via Mail or Fax
A non-profit organization has options outside of the online application method when it comes to obtaining a Tax ID (EIN) Number. The other options will include applying for the nine-digit and unique Tax ID (EIN) Number via mail or fax machine. Whether you are applying via mail or fax, the two things that are necessary is that you need to print out the form SS-4 EIN (Tax ID) Application and you also need to be sure you have all necessary mandatory business information. When you get all of those details in place you can then go through the processing methods for both application steps.
The mail method for applying for a Tax ID (EIN) Number for your non-profit organization requires the form to be printed and filled out in full. You also need an envelope with the address of the Internal Revenue Service. Postage is also something to consider, making sure it is adequate. You will then mail the full package to the Internal Revenue Service for processing.
The fax method for the Tax ID (EIN) Number for the non-profit organization is a similar process. You need to know the fax number for the IRS first and foremost, as well as having access to a fax machine in general. Once you do that you can put the complete SS-4 EIN (Tax ID) Application through the fax machine and send it over for processing. Once everything is all set they will fax you back the unique nine-digit Tax ID (EIN) Number.
4. How Do I Obtain a Tax ID (EIN) Number for my Non-Profit Organization?
You can obtain a Tax ID (EIN) Number for your non-profit organization by following any of the steps laid out above. The online application method is going to be cleanest of all of them, allowing for quick processing. The mail application method and fax methods also provide other variety of options. The final method is going to be applying over the telephone. Any will work it is all a matter of what works best for you.
5. How Long Does it Take to Obtain a Tax ID (EIN) Number for my Non-Profit Organization?
The length of time it takes to get the complete Tax ID (EIN) Number for your non-profit organization depends on the EIN application method chosen. The online method can take just a matter of minutes from start to finish. The mail method will take weeks, while the fax method will take a few days. It all depends on how long you can and are willing to wait.
6. Why Do I Need a Tax ID (EIN) Number for my Non-Profit Organization?
The non-profit organization needs to comply with the IRS, filing a non-profit tax return annually. If the non-profit has employees, the number is necessary for payroll tax processing. You will also need it to open up any type of bank account or loan in the name of the non-profit organization.
Take the time early on in the life of your non-profit organization to be compliant with the IRS. Prepare for easy tax filings and financial transactions by having your unique nine-digit EIN ready.