The IRS issues a unique EIN to businesses and other entities to identify them for tax purposes. Similar to a social security number, it is nine digits. Companies start up and close on a continuous, ongoing basis. Non-profits, pension plans and trusts also need them to be legally registered. Here is some information on what happens to Tax ID numbers that belong to organizations no longer in operation and how to get an EIN for a trust.
Are EIN’s Recycled?
Regardless of whether they were acquired or closed, the numbers are never re-used. In some cases, the EIN hasn’t been used at all; no bank accounts were opened, and no income taxes were filed. The Tax ID number becomes part of the government’s permanent records. However, the Tax ID number can be discarded, even if it will never be re-assigned.
Do I Need a Trust EIN?
Creating a trust enables you to transfer property, wealth and other assets to beneficiaries without the necessity of public probate. This ensures the assets are distributed as you wish. It also increases financial privacy, protects heirs from creditors and avoids estate taxes. There are two types of trusts.
• A living trust gives you the freedom to change the terms or terminate it at any time.
• An irrevocable trust permanently removes your rights of ownership by transferring it to the trust.
Only the beneficiary can change or cancel it.
A living trust can use your social security number while you are living, but an EIN number will need to replace it upon your death as it changes from a revocable to an irrevocable trust. The Tax ID number must replace the social security number on each account that is part of the trust. This enables taxes to be paid.
An EIN number can simplify asset management, tax filing and financial transactions. Govt Assist makes it simple to apply, and our support team is available 24/7 to help. Contact us for more information on getting a Tax ID number for your trust, non-profit or business organization.