Eleanor Finch
Political organisations are subject to tax under IRC section 527 and are required to obtain an Employer Identification Number (EIN), even if they have no employees. An EIN is a nine-digit number used by the IRS to identify taxpayers who need to file various tax forms. To get an EIN, an organisation must file Form SS-4, which can be done online, by phone, or by submitting a paper form via fax or mail. This number is necessary to open a bank account.
Characteristics and Values
| Characteristics | Values |
|---|---|
| What is an EIN? | An EIN is an Employer Identification Number, also known as a Federal Tax Identification Number. |
| Who needs an EIN? | Tax-exempt political organizations, even if they have no employees. Political parties, campaign committees for candidates for federal, state, or local office, and political action committees are all subject to tax under IRC section 527 and require an EIN. |
| How to obtain an EIN? | Complete and submit IRS Form SS-4, Application for Employer Identification Number. This can be done online, by phone, fax, or mail. |
| Additional Information | The FEC committee ID number is different from the EIN. An EIN is required to open a bank account for the committee. |
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What You'll Learn
Apply online using Form SS-4
To apply online using Form SS-4, start by visiting the official website of the Internal Revenue Service (IRS). On the website, locate and access the Form SS-4, which is used to apply for an Employer Identification Number (EIN). This 9-digit number is essential for tax filing and reporting purposes.
When completing Form SS-4, you will be required to provide detailed information about your political campaign organization. This includes information such as the organization's name, address, and type of entity. If your campaign qualifies as a section 527 political organization, be sure to check the "Other nonprofit organization" box and specify "Section 527 organization" in the designated space. Additionally, if your campaign is covered by a group exemption letter, don't forget to enter the four-digit group exemption number (GEN).
Keep in mind that an EIN is specifically for business use and should not be used in place of your social security number (SSN) or individual taxpayer identification number (ITIN). As you complete the form, ensure that all information is accurate and up-to-date. Once you have finished filling out the form, carefully review it before submission.
After submitting Form SS-4 online, the IRS will process your application. Typically, you can expect to receive your EIN within a few business days. However, processing times may vary, so it is recommended to check the IRS website or contact their support for the most accurate and current information. Remember to keep a record of your submitted Form SS-4 and the subsequently assigned EIN for future reference and tax-related purposes.
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Call the IRS using the toll-free Business & Specialty Tax Line
If you are setting up a political campaign, you will need to obtain an Employer Identification Number (EIN). To do this, you can call the Internal Revenue Service (IRS) via their toll-free Business & Specialty Tax Line at 800-829-4933 (TTY 800-829-4059).
This phone line is a direct and efficient way to obtain your EIN and receive guidance throughout the process. When you call, you will be connected to an IRS representative who specializes in business and specialty taxes, including EIN applications for political organizations. They will guide you through the requirements and ensure you have all the necessary information to complete your application successfully.
Before you make the call, ensure you have all the relevant information at hand. This includes details about your political organization, such as the name of the responsible party and their contact information. The responsible party is the person in charge of the entity and its assets, and their information is required on the EIN application. Additionally, have the address and contact information of your political campaign readily available.
During the call, the IRS representative will ask you a series of questions to determine your eligibility for an EIN and to understand the nature of your political campaign. They will guide you through the application process, which may involve completing Form SS-4, Application for Employer Identification Number. This form can be submitted online, via fax, or by mail. The IRS representative will provide you with the appropriate instructions based on your specific situation.
Remember, obtaining an EIN is a crucial step in establishing your political campaign as it enables you to comply with tax requirements and file the necessary paperwork. By calling the IRS's toll-free Business & Specialty Tax Line, you can receive personalized assistance and ensure that you are taking the correct steps to obtain your EIN.
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Fax or mail a paper Form SS-4
Fax or mail are two of the available options for submitting a paper Form SS-4. This form is used to apply for an Employer Identification Number (EIN), a nine-digit number assigned to employers, sole proprietors, corporations, and others for tax filing and reporting purposes.
To fax or mail Form SS-4, first, complete the form, ensuring all details are accurate and up to date. Verify that the mailing and physical addresses match official records to avoid discrepancies. Double-check identifiers like SSN or ITIN, as errors can lead to rejection.
If you are mailing the form, refer to the "Where to File Your Taxes - Form SS-4" instructions on the IRS website to find the correct mailing address. The processing time for mailed applications is approximately four weeks.
For fax submissions, refer to the "Where to File or Fax" instructions on the IRS website to find the appropriate fax number. You can expect confirmation within a week of faxing your application, and the processing time is generally four business days.
Keep in mind that the IRS no longer issues EINs by telephone for domestic taxpayers. Only international applicants can receive an EIN by telephone.
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File Form 8871 within 24 hours of organisation creation
Form 8871 is a crucial document for political organisations in the United States, and it must be filed within 24 hours of the organisation's creation. This form is a declaration of the organisation's intent to operate under tax-exempt status, and it ensures transparency and compliance with IRS regulations. It is important to note that failure to file Form 8871 accurately and on time can result in significant consequences, including the loss of tax-exempt status and potential financial penalties.
To file Form 8871, the organisation must have an Employer Identification Number (EIN), also known as a Federal Tax Identification Number. This nine-digit number is used by the IRS to identify taxpayers required to file various tax forms. An organisation can apply for an EIN by completing an online Form SS-4, Application for Employer Identification Number, or by calling the IRS's toll-free Business & Specialty Tax Line. The quickest way to obtain an EIN is through the IRS's website.
When filing Form 8871, organisations must provide detailed information, including the organisation's formal name, mailing address, and EIN. Additionally, the organisation must declare its purpose, mission, and activities related to influencing public office elections. This requirement applies to political action committees (PACs), candidate committees, and local political clubs meeting specific IRS criteria. Organisations with gross receipts of $25,000 or more in a taxable year must file Form 8871.
It is important to note that organisations may need to amend their filings to address errors or reflect changes in operations. Amendments must clearly outline any changes, such as updates to principal officers' details, to ensure accurate records are maintained. The filing process for Form 8871 is conducted through the IRS's online platform, which provides immediate confirmation of receipt. Therefore, organisations must ensure their IRS e-Services account is active and have the necessary login credentials to avoid delays in filing Form 8871.
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Open a bank account with the EIN
To open a bank account with an EIN, you must first obtain an EIN by completing an online Form SS-4, Application for Employer Identification Number, or by calling the toll-free Business & Specialty Tax Line. You can also submit a paper Form SS-4 via fax or mail. An EIN is a unique, nine-digit number that the IRS uses to identify taxpayers required to file various tax forms.
Once you have obtained your EIN, you can use it to open a business bank account. While it is possible to open a business bank account without an EIN, providing one will help show that your business is legitimate. Banks use your EIN to verify that your business is a legitimate entity that pays taxes. Additionally, an EIN allows you to apply for a business credit card and build up a line of business credit, which is essential for separating your personal and business finances.
However, it is important to note that even with an EIN, you will still need to provide personal information and additional documentation to open a business bank account. This includes your name, date of birth, address, and some form of identification number, such as a Social Security Number or Individual Taxpayer Identification Number. Banks are required by law to verify the identities of their customers to help prevent fraud and money laundering.
If you are a sole proprietor or single-member LLC without employees, you may not need an EIN to open a business bank account. In this case, you can provide your Social Security Number or Individual Taxpayer Identification Number instead. However, if you plan to hire employees or contractors, you will need to obtain an EIN. Additionally, if you are doing business as a partnership, multi-member LLC, or corporation, the federal government requires an EIN.
It is recommended to consult your accountant or a tax professional if you are unsure about the specific requirements for your business.
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Frequently asked questions
EIN stands for Employer Identification Number, also known as a Federal Tax Identification Number. It is a nine-digit number used by the IRS to identify taxpayers that are required to file various tax forms.
All political organizations, including campaign committees for candidates for federal, state, or local office, are required to have an EIN in order to comply with tax requirements.
You can obtain an EIN for your political campaign by completing and submitting IRS Form SS-4, Application for Employer Identification Number. This can be done online, via fax, mail, or by calling the IRS's toll-free Business & Specialty Tax Line at 800-829-4933.
To complete Form SS-4, you will need to provide basic information about your political organization, such as its name, address, and the type of political organization it is. You will also need to provide the name and Social Security Number of the organization's responsible party.
Obtaining an EIN for your political campaign can typically be done quickly, especially if you apply online. The IRS's website is the preferred and quickest way to obtain your committee's EIN.
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