Can I be denied from getting a tax ID?

Most businesses, especially those with employees, must have an EIN or employer identification number from the IRS. For the most part, the IRS will approve your application for an EIN. However, there are some instances where you might find your EIN application denied. When you wonder, “why can’t I get an EIN online,” run through this checklist to see if any apply to your situation.

Reference 101 Error

One of the most common reasons you might find that you can’t get EIN online is that your application comes back with a Reference 101 error. This often occurs because you have a conflict with your name on the application. Entity names must be unique. Your state agency should check to ensure that your name has not already been taken when you initially file for your corporation or LLC.

Missing information might also lead to a 101 error. Problems with locations, such as listing different states for your physical address than that of your incorporation might lead to an error. Having more than one state on your EIN application might increase your chances of an error.

Existing EIN

Another common reason for getting a denial when you apply for an EIN is that your business entity already has one. You only need one EIN per business, and the same number stays with your business for life, unless certain large-scale changes happen such as changing the structure of your entity. For example, if you originally received your EIN as a sole proprietorship and recently changed to an LLC, you will need to apply for a new EIN. If you have simply forgotten your EIN, do not apply for a new one. Instead, you should fill out an application to find your existing EIN.

For the most part, you should not experience a denial of your EIN application when you apply for EIN online, as long as you have all of the right forms and accurate information. If you do experience a denial, then you can take strides to get the decision overturned. Find out the forms needed and start your application with GovDocFiling.