Unscrupulous Websites Requesting a Payment for Your Employer Identification Number are Fraudulent
Don't Get Hooked by EIN Scams: Apply for Free on the IRS Site
Listen up, folks! Scammers are out here making a pretty penny by selling you something you can easily get for free – like government services, such as an Employer Identification Number (EIN). The Federal Trade Commission (FTC) is warning consumers about fraudulent websites posing as the IRS, charging up to $300 to fill out paperwork for an EIN.
Here's the deal: Applying for an EIN on the official IRS website is absolutely free and takes just a few minutes. An EIN is like a corporate identifier for tax filing purposes, and it's required for anyone starting a business, managing an estate, or running a non-profit, as well as households employing domestic workers (e.g., a family hiring a nanny).
How the EIN Scam Goes Down
These shady operations are pretending to represent the IRS or are associating themselves with the IRS in ways that should make your eyebrows go up, including:
- Copying the IRS' logos, colors, and layout on their websites and ads
- Using "IRS" in their domain names
- Advertising themselves as an "EIN Assistant"
- Failing to disclose their lack of affiliation with the IRS
- Not mentioning that their payments are service fees, since EINs are free
It's not just EINs, either. Scammers are also earning money by charging people for help applying for the Department of Homeland Security's Trusted Traveler Programs, like TSA PreCheck and Global Entry. While there is a fee for these programs, you don't have to pay for the application itself. TSA PreCheck even contracts with several third-party enrollment providers, with total fees ranging from $67 to $78.
How to Get an EIN for Free
Want to apply for an EIN for your business? Head over to the IRS' official EIN Assistant tool on their website. You'll need to provide some details about your business's legal structure and your personal information, like your name, address, contact info, and tax ID. In no time at all, you'll have your EIN – and it won't cost you a dime.
So, be smart, scroll to the IRS' website, and fill out the EIN Assistant tool to get your EIN free and easy. Steer clear of those scammy third-party websites charging fees for something the IRS offers for free!
Tips to Keep Your EIN Application Secure
- Never pay for an EIN – the IRS offers it for free
- Be cautious of sites mimicking the IRS and charging steep fees
- Don't share sensitive information, such as your EIN or identity protection PIN (IP PIN) via phone, email, or texts
- Always double-check the IRS website URL before applying to avoid phony sites
- Report any suspected scams to the FTC, Better Business Bureau, and IRS for further investigation
By following these simple steps, you can protect yourself from EIN scams and get your EIN directly and securely from the IRS. Happy business-building, everyone!
- Be aware that some scammers are charging up to $300 for EINs, which should rightfully be obtained for free on the IRS site.
- To apply for an EIN, visit the IRS' official EIN Assistant tool on their website to avoid these costly scams.
- It's important to remember that the IRS doesn't ask for payment when issuing EINs, so watch out for sites requesting fees or charging service charges for this service.
- Follow security practices, such as double-checking the IRS website URL before applying, and never share sensitive information to avoid falling victim to EIN scams.
