The tax ID verification letter is practically an official confirmation that the IRS (Internal Revenue Service) sends when there is an EIN (Employer Identification Number) request. Applying for the EIN and the following verification letter are very simple processes. ID verification is only complicated when referring to some online businesses. With regular verifications, even replacement letters can be obtained when originals are lost.
Why Is The EIN Number Important?
The EIN is a unique identifying number that is matched to a specific business. It is similar to the Social Security number but it does not identify individual taxpayers. Close to all businesses need EIN. However, the IRS does have a fast checklist presented on the website so that business owners can determine specific needs.
Applying for the EIN is done in different ways.
Receiving The Tax ID Verification
When using online applications in order to obtain the EIN, immediate responses are offered. These can be printed out so the EIN confirmation notice can instantly be obtained. This is a document that needs to be saved in electronic format too so that it can be re-printed in the future, whenever necessary.
When applying with the SS-4 Form and it is faxed, the tax ID verification letter is received in 4 business days. When applying through mail, the letter arrives in around one month.
The Replacement Verification Letter
If you did apply for the EIN at some point in the past but it was lost or misplaced, some things can be done:
- Check the old files – When applied online, it is a good idea to first check your computer. Sometimes documents stay on PCs for years before they are deleted. Also, check the files that you had when the business was started.
- Check with the bank – When you went through a loan application process as the business was started, it is possible that the bank asked for a verification letter copy. This is useful as a copy might still be on record.
- Get a replacement – You can request the replacement letter straight from the IRS. Look for the official Business and Specialty Tax phone line and place a call. Just be ready for really long hold times. When you get through, a representative is usually really easy to check your identity and then give you a replacement letter.
Is The Tax ID Verification Letter Important?
The short answer to this question is yes. In so many situations, after the EIN was initially received, the tax ID verification letter is not shown to anyone. This can happen for years. However, when you work with a brand new vendor or you ask for a loan, the EIN official verification might be mandatory.
Every single business needs to have the tax ID verification letter printed and saved in an electronic format. When this is not the case, problems appear for everyone associated with the business. You have to treat this subject with extreme seriousness. If problems appear, contact an attorney.