Checking an EIN and tax status without breaking IRS privacy rules

What to take away

What an EIN is and who needs one

An employer identification number is a nine-digit number the IRS assigns to businesses for tax administration. It works like a Social Security number for an entity. The IRS uses it for payroll, excise, fiduciary and other federal tax filings.

Most businesses with employees need one, and so do corporations, partnerships and many LLCs. Sole proprietors without employees can often use a Social Security number, although banks and state agencies may still ask for an EIN.

An EIN is not a license and does not prove good standing. For example, a Delaware corporation can hold an EIN while its state status is void. A Texas LLC can hold one while its franchise tax account is delinquent. Nonprofits use the number on their exemption application and on their annual returns.

Applying for an EIN with the IRS

The IRS EIN application is free. Anyone who charges a fee for it is selling a service, not a faster government route. You can apply online, by fax or by mail. The online form is the fastest route for entities with a principal address in the United States or a U.S. territory.

The online form asks for these steps, in order:

The IRS Employer Identification Number page explains each step and the forms involved. One legal entity needs one EIN. Separate legal entities, even under common ownership, each need their own.

If the number is lost, the entity or its responsible party can ask the IRS for a copy of its assignment notice or EIN verification letter (Letter 147C). A vendor cannot make that request on the entity's behalf.

Why the IRS will not confirm another party's EIN

Section 6103 of the Internal Revenue Code generally bars the IRS from disclosing return information about a taxpayer. The agency therefore will not tell a third party whether a given EIN belongs to a given business, whether it is active, or whether its returns were filed.

The IRS will not confirm an EIN, the name on the account or the filing status over the phone to an outside party. Some vendors call the IRS Business and Specialty Tax line to try. That line serves taxpayers with their own accounts, not third-party verification.

Two lawful routes exist. Payers that file information returns can use IRS TIN Matching to check a name and taxpayer identification number combination. A business can also authorize a third party to see its records with IRS Form 8821, Tax Information Authorization.

For entity-level facts, use the state registry. A registration status data check from a secretary of state shows whether the entity exists and is current. It says nothing about federal tax.

Tax Exempt Organization Search for nonprofits

Tax Exempt Organization Search is the IRS tool for checking whether an organization is recognized as tax exempt. It is the public source for nonprofit exemption status.

You can search by legal name, EIN or location. Results show the organization's name, EIN, exemption type and ruling date. Some records link to filing requirements and annual returns.

The tool covers organizations recognized under section 501(c) and certain section 527 organizations. A state-chartered nonprofit corporation can appear in a state registry without an IRS record. Some churches and small organizations are not required to file, so a missing record is not proof that exemption was denied.

A grant officer should run the search before releasing funds. Use the EIN from the organization's own documents. If it matches a record with a different legal name, ask why. Mergers, name changes and fiscal sponsorships can explain the gap, but so can fraud.

Exemption can also be lost. The IRS revokes exemption for organizations that fail to file for three consecutive years, so an old determination letter does not prove current status.

State revenue lookups as a separate check

A state revenue lookup shows whether a business is registered with a state tax authority for taxes such as sales, use, withholding or franchise tax. It is separate from the IRS search and from the business entity registry.

Every state runs its own system. Some publish searchable databases of sales tax permits or franchise tax account status. Others offer only a contact form, so the screener may need written confirmation. The figure compares California and Texas. Check each state's revenue department site for its current tool.

A state tax registration is not a federal tax status. A business can be current with a state and delinquent with the IRS, or the reverse. Record both checks separately.

Use the lookup to confirm the name and address on the permit. A mismatch between the permit name and the contract name deserves a question. It may be a trade name, or it may be a different entity. State revenue data also ages, so date every lookup and keep a screenshot.

What a W-9 or letter can and cannot establish

A completed Form W-9 is the normal way to collect an EIN from a vendor or payee. It records what the party claims its name and number are. It does not establish that the IRS agrees with them.

A W-9 is a self-certification signed under penalties of perjury. If the number is wrong, the remedy runs against the signer, not the IRS.

An IRS letter, such as an assignment notice or EIN verification letter, is stronger evidence because the IRS issued it to the entity. Documents can be altered, and a letter does not prove current status.

For nonprofits, a determination letter shows exemption as of the date it was issued. Only the Tax Exempt Organization Search shows current status. For vendors, a practical file is a W-9, a dated state registry printout, and a dated TIN Matching result where the screener is a payer. A letter from an accountant may be useful context, but it has no government weight.

Screening limits under IRS privacy rules

IRS privacy constraints come from the Internal Revenue Code, not from agency policy alone. Section 6103 prohibits disclosure of return information, which includes whether a person filed a return and the nature of its tax liability.

An EIN is taxpayer identity information. The IRS cannot confirm it to a third party outside the narrow exceptions, so a commercial EIN checker cannot read IRS records directly.

Some services only check whether the number is well formed. A format check shows the number could be valid. It does not show that the number belongs to your counterparty.

Treat any claim of IRS verification with suspicion. Ask for written confirmation, such as a TIN Matching result or an IRS letter issued to the entity itself.

Federal agencies can access some IRS data for specific programs under their own statutory authority. A state grant officer generally cannot. Build the screening process around what can lawfully be obtained: entity registration, state tax registration and nonprofit exemption status. Federal tax compliance for a for-profit business is not publicly available.

Where entity records and tax status diverge

Entity records and tax records are kept by different governments for different purposes, so they diverge. A good screening process expects it.

A company can be active in a state registry and have no state tax registration. A company can hold a state tax permit and be dissolved. A nonprofit can be incorporated and never obtain IRS exemption.

For example, a Wyoming LLC may file its annual report and stay in good standing with the Secretary of State while holding no sales tax permit and having no employees. Each check returns a different answer, and each answer is correct for its own question.

Delaware is a common source of confusion. The Delaware franchise tax guide explains that the Division of Corporations tracks entity status and state franchise tax, not federal income tax. A Delaware entity can be in good standing and still owe the IRS.

Florida's Sunbiz system shows corporate status and annual report filings. It does not show federal tax status. A Florida vendor can appear active on Sunbiz and still have an unpaid federal balance.

Map each question to its source. Existence and good standing come from the secretary of state. State tax registration comes from the revenue department. Nonprofit exemption comes from the IRS. Federal tax compliance for a for-profit entity comes from the entity itself, through a W-9 and a contract clause.

Before you build a file, decide what counts as proof. Document what each source told you, when you checked it, and what the check could not show.

Common questions