Understanding the Process and Timeframe for Applying for an EIN via SS-4 and Fax

Filing for an Employer Identification Number (EIN) is a crucial step for any business owner. This article provides a comprehensive guide on the process of filling out the SS-4 form and sending a fax to the Internal Revenue Service (IRS) to obtain an EIN, along with the expected timeframes for each step.

Filling Out the SS-4 Form

Filling out the SS-4 form to apply for an EIN can be completed in a relatively short amount of time. The duration typically ranges between 15 to 30 minutes, depending on how thoroughly you are prepared with the necessary information. This form requires you to provide details about your business structure, ownership, and the reason for applying for an EIN.

How to Prepare

Gather your business name, address, phone number, and EIN (if available for your business or parent entity). Identify the business structure (e.g., C corporation, partnership, sole proprietorship). Provide the names and SSNs/EINs of all owners or officers. Indicate the business’s reason for needing an EIN (e.g., hiring employees, opening a bank account, filing federal tax returns).

The Faxing Process

Once the SS-4 form is filled out, the actual faxing process is quick, typically taking just a few minutes. However, it is important to factor in additional time to ensure the IRS receives and processes the faxed form.

Timeframe for Confirmation

The IRS may take some time to process the faxed SS-4 form. This processing time can range from a few hours to a week, depending on their current workload. It is important to allow for variability in the response time due to potential backlogs, especially during periods of high demand or system overloads.

Current Circumstances and Timeframes

As of April 2021, the IRS has not yet returned to its normal operating capacity, and there is still a backlog of requests to process. This has led to extended timeframes for EIN applications submitted via fax. The IRS has indicated that it will respond when it can, but the delays can significantly impact the processing time.

Extended Timeframes

Fax Applications: The current processing timeframe for faxed applications exceeds 45 business days. Mailed In Applications: The current processing timeframe for mailed in applications exceeds 90 days.

Alternative Methods for EIN Application

In light of these extended timeframes, it is highly recommended to apply for an EIN online. The IRS website (IRS.gov) offers an efficient and faster method for obtaining an EIN. Online applications usually provide instant confirmation once the application is submitted.

Benefits of Applying Online

Efficiency: Online applications are typically faster and more efficient. Instant Confirmation: Many online applications offer instant confirmation once the EIN is assigned. No Waiting Time: There is no waiting time for processing, which can be particularly beneficial during peak periods.

Conclusion

While applying for an EIN via the SS-4 form and fax can be a straightforward process, it is important to factor in the time it takes for the IRS to process your request. The current extended timeframes are due to various factors, including the ongoing impact of the pandemic. For the most accurate guidance, it is advisable to check the IRS website or contact them directly for the most up-to-date information.

Further Reading

To learn more about the EIN application process and related matters, visit the official IRS website or consult with a tax professional.