Taxes aren’t something most people look forward to every year, but they are important when it comes to making sure the country runs smoothly. If you own a business, you’ll likely have to submit taxes both for yourself personally and your business every year, ensuring that you’re not trying to skirt taxes as a legal organization.
When you pay taxes, the IRS typically doesn’t track you using your name. After all, names can change, and they often do throughout your life. Instead, they track you using one of many numbers. A FEIN may be one of the numbers that the IRS tracks you and your business with, allowing them to make sure you’ve paid your taxes with a specific business.
A FEIN, which stands for Federal Employee Identification Number, is a type of tax ID number that the IRS uses to track taxes for a company. Like a Social Security Number or an Individual Taxpayer Identity Number for a person, a FEIN is what allows the United States government to track the taxes that a business owes and pays. With a FEIN, the government can track your company’s taxes even if you change its name or move it across the country.
As you research FEINs, you might also run across the phrase EIN—Employee Identification Number. Especially if you’ve only been seeing the term “FEIN,” this can confuse you. What’s the difference between a FEIN and an EIN? Do you need to worry about the difference?
As a matter of fact, you don’t. According to the IRS, FEIN and EIN are basically two ways to say the same thing. Whenever you see someone ask for an EIN, you can input your FEIN and vice versa. Regardless of the term that someone is using, they’re asking for the government-assigned number that your business uses to pay its taxes.
So, why might anyone outside of the owner of a business need to know about a specific FEIN? Actually, a FEIN can be helpful for many individuals, including possibly all of these:
Essentially, a FEIN allows an interested party to track your business as easily as they would track you. That means if someone’s looking into shirked taxes, trying to find the owner of a business, or interested in historical information regarding a business’s success or failure, they might need a FEIN to track that.
With Enformion, it’s easier to gather more information about someone’s business. Even if you’re not able to find the FEIN of a business, you may be able to track people in other ways through Enformion. For example, once you know the name of an owner of a business, you can use Enformion to skip trace that individual. You may also be able to get more information about a specific business. Regardless of what you’re using Enformion for, it’s true that you can get all sorts of information with a single search through Enformion.