How do I resolve the reference 101 error in the EIN application process?
Have you tried to get your Employer Identification number on your own and receive an EIN reference number 101 error? Your application was rejected and you’re not sure why and you need to have a tax ID for your entity.
Assistance for Your Business Filings
At GovDocFiling, we can help overcome problems with Reference 101 errors and still provide you with the assistance of working through the application process. To receive your Reference 101 Error Resolution Guide, please fill out the form below, you will also be subscribed to our new business email list, you can unsubscribe at any time!
What Might Cause Error Code 101
The IRS reference number 101 fault triggers when there is a naming conflict with your business. For some reason, the agency cannot distinguish your company’s identity.
There are a few common reasons for that:
- A company from another state has the same name
- Your business name closely resembles another
- The primary agent in your firm already has an EIN for another business
- You made a typo in the form causing a conflict of information
Part of establishing your company should include a search for similarly named firms in your state. Your state and local governments usually insist you name your business in such a way that it doesn’t conflict with other businesses in their jurisdiction.
That doesn’t mean out of state firms haven’t used the same name. You might accidentally duplicate a business name for a business existing in some other part of the country. The IRS is a federal agency, and its scope is much broader than your state government. These conflicts are common.
The Solution
Like any other identity problem, the solution for error code 101 requires you to clarify your right to use the name of your business. In most cases, you must communicate directly with the IRS through the mail, fax, or phone.
This approach causes delays. Without an EIN, you cannot open business accounts with banks or apply for credit. You may not hire employees, and you cannot establish your credit file.