Importance of EIN on IRS Form 2290
Starting a trucking industry this tax year within the United States? Do you have an Employer Identification Number? If “No”, then you need to apply for an EIN to file any business tax return. Employer Identification Number used for identification purposes.
Doesn’t know about EIN? Don’t worry! We will let you know the importance of EIN when filing IRS Form 2290. We provide you the process to apply for a new EIN, obtain EIN benefits, and file Form 2290 with a new EIN.
What is a 2290 Employer Identification Number?
Employer Identification Number is also known as Federal Employer Identification Number. It is a unique 9-digit code assigned to business entities for filing tax returns. Business uses EIN in filing Form 2290 to operate a business using heavy vehicles on public roads within the United States. The IRS uses EIN to identify the business individual who files various tax returns. As we know, EIN used mostly by individuals, business entities, sole proprietors, corporations, etc. Moreover, the IRS assigns EIN to the individuals who are operating in the United States for identification.
How to apply for an EIN to file Form 2290?
Given below are the methods to apply for an EIN:
Online
The easiest and the fastest way to apply for an EIN is online. Visit the IRS website between Monday to Friday from 7 am-10 pm. EIN is issued to the individual after validating the information through an online session. Furthermore, the taxpayer can view, print, or save the EIN assignment notice at the end of the session.
By Fax
You can Fax the completed application for EIN to the appropriate fax number for processing. Moreover, you can apply for EIN through fax 24 hours a day, 7 days a week. Finally, you’ll receive EIN through fax within 4 business days.
Through Mail
Mail the completed Form SS-4 to the IRS address which is listed on the Form SS-4 instructions. Make sure that the Form SS-4 contains all the required information. Furthermore, mail the form 4-5 days before you need your EIN to file a tax return. Receive your EIN through the mail after 4 weeks.
What are the important things to know about 2290 EIN?
Follow the below instructions before filing Form 2290 with EIN:
- EIN must be used in connection with your business activities.
- Don’t file Form 2290 with your Social Security Number instead of EIN.
- In general, the Employer Identification Number doesn’t expire. so, it will not be reissued for the same entity.
- Suppose, if you already have a FEIN and the ownership of your business changes, make sure to apply for a new number.
- Ensure to use only one EIN for the same business entity.
- Complete the EIN application in a single session because you cannot save and return it.
- You need a valid TIN when applying for EIN online.
Benefits of having Employer Identification Number
Given below are some of the benefits of having EIN:
File business taxes and avoid tax penalties
As mentioned earlier, to operate a business using heavy vehicles EIN is a must to file taxes. Without an EIN you can operate a business within the US. So, figure out if you need an EIN in advance to avoid tax penalties.
Prevents identity theft
EIN plays a major role in preventing identity theft. It separates your finances from business finances. Moreover, you don’t have to provide SSN after obtaining an EIN. Furthermore, providing your EIN keeps SSN more private.
Open a business account
Generally, banks allow only sole proprietors to open a business account without an EIN. So, EIN helps in opening business accounts. Along with EIN, provide fewer documents to open a business account.
When to file Form 2290 after obtaining a new EIN?
According to the IRS, it takes nearly 2-3 weeks for the new Employer Identification Number to get registered with the IRS database. So, truckers must file Form 2290 2 weeks after receiving the new EIN. Otherwise, the IRS may reject Form 2290 by considering the EIN entered is invalid.
For instance, if you start a trucking business this tax year and apply a business account for a new EIN, provide the necessary details. You’ll receive EIN immediately after completing all the validations. If you File Form 2290 within 2 weeks after getting a new EIN, the IRS rejects the return. So, ensure to file business tax returns after 15 days with a new EIN.
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