Importance of EIN in Form 2290 Filing

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When you file a 2290 form, you need to provide certain details to the IRS. This includes Vehicle Identification Number (VIN), Employee Identification Number (EIN), taxable gross weight of your vehicle, and first use month.

What is EIN?

The Employee Identification Number (EIN) is a unique nine-digit number assigned by the IRS to the taxpayers to file their tax returns. It is also known as the Federal Employer Identification Number.

The EIN is a unique number wherein the first two digits are separated from the rest of the seven digits. For example, the EIN of ABC Company can be 12-3456789.

Difference between EIN and TIN

Some people think that EIN and TIN are different, but actually, they are not. TIN stands for Taxpayer Identification Number. It is the same unique nine-digit number issued by the IRS for business identification.

If you belong to the trucking business and have a highway motor vehicle that weighs 55,000 pounds or more, you must file form 2290 and pay the Heavy Vehicle Use Tax (HVUT), for which you need an EIN.

Ways to Apply for EIN

If you don’t have an EIN, you must apply for the same. Here is the list of different ways to apply it.

  • Online: You can visit the IRS official website. It is one of the easiest ways to apply for EIN. This service is available to all entities whose office or agency, principal business, or legal residence is located in the United States or US territories.
  • Apply by Fax: You can fax the completed Form SS-4 PDF to the appropriate fax number. If a person faxes the form, they will get the new EIN via fax within a few business days.
  • Mail: The IRS has provided taxpayers the facility to mail their completed SS-4 PDF through the mail. It will take up to 4 weeks for your EIN application to get processed. Just make sure that you provide all the details in the form accurately.
  • Telephone: This is the facility provided to international applicants. They can apply for EIN over a phone call by dialing the IRS number 267-941-1099. The person needs to answer all the questions concerning Form SS-4 PDF.

Uses of EIN

There are 6 different uses of EIN stated below:

  • File tax returns: Every business requires an EIN to file taxes. Your EIN is unique to your business and helps to identify your business among the different tax applicants. Every financial decision made on your business’s behalf will be directly related to EIN.
  • Hire employees: The unique nine-digit number will help set up the payrolls and the registration of the State Employer taxes for the employees of your organization. The IRS will use the EIN to track the payroll taxes of your business.
  • Maintain corporate veil: If you want to maintain a corporate veil, EIN will play a very important role. The corporate veil will help protect the business owners from any personal liability from the business debts. This is very helpful for the business in the long run.
  • Prevent identity theft: The sole proprietor or LLC needs to have their EIN. This will help you from disclosing your SSN to clients and vendors. If a business does not have an EIN, it can put them at high risk of identity theft.
  • Open a business bank account: It is of utmost importance for every business to have a business account. To open a business account, you must have an EIN as it will become the unique identity of your business.
  • Qualify for business loans: Taking loans will help in expanding the business. For getting the loan sanctioned from different financial institutions, EIN will play a very important role in getting the loan accepted fast.

As you may know by now, EIN is very important for a business. Not only does it help in the smooth running of your business, but you need an EIN to file your form 2290 annually. So, make sure you apply for an EIN at least a few weeks ahead of time for the successful filing of form 2290.

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