Employee Identification Number Defined



Employee Identification Number Defined




Employee Identification Number Defined - Employers must apply for and obtain a federal Employer Identification Number from the Internal Revenue Service. The EIN is an employer's account number for the collection and reporting of taxes withheld and wages paid to the employees.

Employer Identification Number (EIN) A nine digit number assigned by the IRS for businesses, estates, and trusts.

Your Employer Identification Number, EIN will be a nine digit-number that takes the form: 12-3456789. It is assigned to sole proprietors, corporations, partnerships, estates, trusts, and other entities for filing and reporting purposes. All partnerships, corporations, and trusts need an EIN, even if they have no employees. Sole proprietors need to have an Employer Identification Number, EIN only if they have one or more employees, if they have a Keogh plan, or if they are required to file excise tax forms such as those for sales tax, alcohol or tobacco.

Every year, Congress or the Internal Revenue Service makes life better or worse for taxpayers by changing the tax laws or the tax rules that implement the tax laws. 2006 was no exception. There were a whole slew of tax law changes, including some changes that didn't come until December. Changes for 2006 range from annual adjustments to account for inflation to breaks for energy investments to renewals of a number of tax breaks that had expired after 2005 but still enjoyed enormous popular support. Here are the changes that affect most taxpayers.


Employee Identification Number Defined
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