Does an EIN Expire or Being Cancelled?

Does an EIN expire or cancel? This is one of the questions that we got used to hearing frequently. Good news! We have got all the answers.

Fortunately, the answer is NO, there isn’t any situation that an EIN expires but this does not mean that you can use your number forever and ever. Of course, there are some circumstances that you may have to apply for a new Employer ID Number.  Let’s go back over what EIN is before skipping into the circumstances that we stated above.

What is an EIN? #

Usually referred to as an EIN, an Employer Identification Number is a tax identification number required for U.S. businesses. You may imagine that EINs are like Social Security Numbers for your business, not for individuals. Unlike SSNs, an EIN is a nine-digit number in the “xx-xxxxxxx” format and it is also known as TIN or taxpayer identification number. However, keep in mind that an Individual Taxpayer Identification Number (ITIN) is something totally different than EINs. All businesses are required to obtain an EIN in order to file tax returns or hire employees etc. If your business has more than one owner or employee, you will need to apply for an EIN.

Does an EIN Expire or Being Cancelled? #

Let’s walk through the most critical point: Does my EIN expire or being canceled? As a result of the statement made by IRS about ITINs expiration, people started to worry that EINs would have an expiration date as well.

The truth of the matter is that any expiration for EINs is quite out of the question. Remember that once you obtain an Employer ID Number, it will be yours forever. After this point, it is not necessary to reapply for an EIN after a certain period of time.

Can I Really Cancel my EIN? #

An EIN is issued by the Internal Revenue Service (IRS) and assigned to businesses for tax purposes. These numbers are unique to each U.S. business and cannot be reused by any other entity ever. Whether you ever use your EIN for federal tax return purposes or not, it will not be reassigned or reused to another business entity. Meaning that neither you nor IRS can really “cancel” your EIN. However, if you decide that you do not need your number anymore, you can close your business account with the IRS.

In order to close your business account, sending a letter to the IRS is essential. The followings are needed to be included in the letter:

  • The reason why you request to close your business account with the IRS
  • Your current EIN
  • A complete legal name of your business
  • Business address
  • Copy of the EIN confirmation letter (If applicable) *

*Usually obtained from the IRS during the EIN set up.

Note that paying taxes such as income, payroll, and other employment taxes is quite important before closing your account.

How to Change an EIN? #

We have already mentioned above that there are some circumstances you may have to apply for a new EIN. Let’s have a look at those circumstances:

  • If you change your business structure (sole proprietorship to corporation or partnership or vice versa)
  • If your existing business is inherited by someone who is going to run it as a sole prop.
  • If an individual owner dies, his/her estate takes control of the business

It is not obliged to have an Employer ID Number in all cases. It depends on the business structure you carry out. However, we recommend all businesses to obtain an EIN as it provides both protection and privacy.

You may find all the answers that confuse your mind at einitin.com with the help of our experienced team members via live chat or e-mail support: [email protected]