Some of our clients have had trouble filing EIN applications on their own, and have asked us, “Can I get denied from getting an EIN?”
It is possible to get denied for an Employer Identification Number, or EIN. Below we detail some common problems and how you can avoid them:
Reference Number 101 Error
An EIN application may be denied for conflicts resulting in a 101 error. This type of error occurs when there is an entity name conflict on the EIN application.
More specifically, the IRS checks to ensure that the entity name is unique. This is similar to the way state agencies require a unique entity name within that state before a corporation or Limited Liability Company can file articles of incorporation or organization.
There are several areas within the EIN application where a state must be listed. For example, the physical address of a business may be located in a different state than where the business incorporated.
Multiple states on an EIN application my increase the likelihood of a 101 error, as the IRS will be forced to check multiple states to ensure the business name is unique in each state listed on the form before it will issue an EIN.
How to Apply for EIN Number Online
We’ve also had clients ask, “Can I get denied from getting an EIN if I have already applied for an EIN online?”
This is a common question because there are some cases in which you can’t apply for an EIN online.
All EIN applications require a responsible party name and a matching federal tax ID. There are three acceptable tax IDs: Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), or another EIN.
You may not use an EIN number obtained electronically to obtain other electronic EIN numbers. If you are unsure about how an EIN was obtained, you should check your EIN number online; if the two first numbers are 20, 26, 27, 45, 46, or 47, that means the EIN was generated online.
If you have other questions about why your application was denied, please contact us directly and we will assist you personally.