Applying for an EIN: A Step-by-Step Guide for Your Special Purpose Vehicle (SPV)

by Chris Tabb in

An Employer Identification Number (EIN) is a unique number assigned to a business by the Internal Revenue Service (IRS) for tax-filing and reporting purposes.

If you're starting a special purpose vehicle (SPV) and need to get an EIN, you can apply for one online, by fax or by mail. Once you have been assigned an EIN, you may need to obtain an EIN Verification Letter from the IRS to confirm the validity of the EIN for banking, investment or other official purpose.

How to apply for an EIN for an SPV

Online: You can apply for an EIN online by visiting the IRS website and accessing the "EIN Online Assistant" page. You will need to provide the name and Tax Identification Number (TIN) of the responsible party, a valid email address and phone number and information about the SPV such as its legal name and address.

Phone: You can apply for an EIN by calling the IRS at 1-800-829-4933. You will need to provide the name of the business, the TIN of the responsible party, and other identifying information when calling.

Mail: You can apply for an EIN by mail by filing a Form SS-4 (PDF) "Application for Employer Identification Number." This form can be found on the IRS website. You can also mail this form to the appropriate address for your entity type and state, (this information can be found on the Form SS-4 (PDF) and the Form SS-4 Instructions (PDF) ).

Fax: You can apply for an EIN by faxing the completed Form SS-4 to the appropriate fax number for your state and entity type. You can find the fax number on the IRS website or in the Form SS-4 Instructions (PDF).

The difference between an EIN and an EIN Verification Letter

An Employer Identification Number (EIN) is a unique number assigned to a business by the Internal Revenue Service (IRS) for tax-filing and reporting purposes. An EIN Verification Letter, on the other hand, is a letter issued by the IRS that confirms the validity of an EIN.

The main difference between an EIN and an EIN Verification Letter is their purpose and use. An EIN is used by a business for tax-filing and reporting purposes, such as when opening a bank account, applying for credit, or filing taxes. An EIN Verification Letter, on the other hand, is used as proof of an EIN for various official purposes such as proof of EIN for a bank, or other financial institutions or governmental agencies.

Another difference is that while an EIN is assigned to a business only once, the EIN Verification Letter can be requested multiple times. For example, if the information of the EIN holder is lost or misplaced, you can request another EIN Verification Letter from the IRS.

In summary, EIN is a unique number assigned to a business that's required for filing taxes and reporting to the IRS. EIN Verification letter is a document provided by the IRS that confirms the validity of the EIN and that can be used as proof of the EIN for official purposes.

How to use Form 4506-T to apply for an EIN Verification Letter

 If you are looking to obtain an EIN Verification Letter for your special purpose vehicle (SPV), you can use Form 4506-T to request one from the IRS.

Here are the steps to use Form 4506-T for an EIN Verification Letter:

Download the form: You can download Form 4506-T from the IRS website or request one to be mailed to you.

Complete the form: Fill out the form with the correct information, including the name and address of the SPV, the EIN of the SPV, and the name and contact information of the person requesting the letter.

Sign and date the form: Be sure to sign and date the form before submitting it.

Mail or fax the form: You can mail or fax the form to the appropriate address or fax number provided by the IRS. You can find the address on the form or in the form instruction.

Allow time for processing: It takes the IRS about 4-6 weeks to process a request for an EIN Verification Letter, so be sure to plan accordingly.

Once you received the letter: The EIN Verification Letter will be signed by the IRS and will include the EIN, the legal name of the SPV, and the date the EIN was assigned. You can use this letter as proof of your EIN for banking or other official purposes.

Please note that Form 4506-T needs to be signed by the authorized representative of the entity, which means the person with the power of attorney, otherwise, the process might get delayed, or might not be processed.

How to use an EIN Verification Letter for banking or other official purposes

Here are the steps you can follow to use an EIN Verification Letter for banking or other official purposes:

Request the letter: To obtain an EIN Verification Letter, you will need to submit a request to the IRS. You can request the letter by mail, fax, or by filling out Form 4506-T.

Gather the necessary information: To request an EIN Verification Letter, you will need the EIN of the business, the name and address of the business, and the name and contact information of the person requesting the letter.

Allow time for processing: It typically takes the IRS about 4-6 weeks to process a request for an EIN Verification Letter, so be sure to plan accordingly.

Submit the letter: Once you have received the letter from the IRS, you can submit it to the bank or other official entity as proof of the EIN.

Keep the letter: It's important to keep a copy of the EIN Verification Letter in a safe place, as you may need to provide it to other entities in the future.

How to check the status of an EIN application

If you have applied for an EIN for your Special Purpose Vehicle (SPV) and you want to check the status of your application, you can do so using the following methods:

Online: If you applied for an EIN online, you can check the status of your application by logging into the IRS EIN Assistant. You will need to enter your confirmation number, which you should have received at the time of your application.

Phone: You can also check the status of your EIN application by calling the IRS at 1-800-829-4933. You will need to provide the name of the business, the EIN, and the date of application when calling.

Email: If you prefer to use email, you can check the status of your EIN application by emailing the IRS at ein.application.status@irs.gov. You will need to provide the name of the business, the EIN, and the date of application in your email.

Mail: You can check the status of your EIN application by mail. Send your request to the appropriate address for your entity type and state, (this information can be found on the Form SS-4 (PDF) and the Form SS-4 Instructions (PDF) that you've filled up to apply for EIN), include your EIN, business name and mailing address on your letter.

Regardless of the method you choose, it is important to note that the IRS typically takes several weeks to process EIN applications and to assign an EIN. So, it is better to check the status of your application after that timeframe.

How to update an EIN for an SPV

If you need to update an EIN for a special purpose vehicle (SPV), you can do so using the following methods:

Online: You can update your EIN online by visiting the IRS website and accessing the "EIN Online Assistant" page. You will need to provide your EIN and the tax period for which you are requesting the update.

Phone: You can also update your EIN by calling the IRS at 1-800-829-4933. You will need to provide the name of the business, the EIN, and the reason for the update when calling.

Mail: You can update your EIN by mail by filing a Form SS-4 (PDF) "Application for Employer Identification Number." This form can be found on the IRS website. You can also mail this form to the appropriate address for your entity type and state, (this information can be found on the Form SS-4 (PDF) and the Form SS-4 Instructions (PDF) ).

Email: You can update your EIN by emailing the IRS at ein.application.status@irs.gov and providing the details of your change request.

Regardless of the method you choose, you will typically be required to provide the updated information such as legal name, address, type of entity, ownership and principal officer of the SPV. It's important to provide accurate and up-to-date information, to avoid any potential delays in the processing of your request or future compliance issues.

The impact of not having an EIN for an SPV

Not having an Employer Identification Number (EIN) for a special purpose vehicle (SPV) can have a significant impact on the operation and compliance of the entity.

Here are a few potential consequences of not having an EIN:

Tax compliance issues: Not having an EIN can make it difficult for an SPV to comply with tax laws and regulations. The EIN is used to identify the entity for tax-filing and reporting purposes, and not having one can make it difficult for the SPV to file taxes and report income.

Legal compliance issues: Not having an EIN can make it difficult for an SPV to comply with legal requirements. An EIN is often required for legal transactions, such as opening a bank account or entering into contracts.

Difficulty in opening bank account: Without an EIN, it can be difficult for an SPV to open a bank account, since most banks require an EIN as part of their account opening process to comply with regulatory requirement.

Penalties and fines: Not having an EIN can result in penalties and fines. The IRS can assess penalties for failing to file required tax forms or for failing to disclose a correct EIN on required forms.

Audits and investigations: Without an EIN, the SPV may be subject to audits and investigations by the IRS or other regulatory authorities as it can raise red flags.

It's important for an SPV to obtain an EIN as soon as possible after being formed, to ensure compliance with tax and legal requirements, avoid penalties and fines and make it easy for financial transactions and banking compliance.

Open Your Business Bank Account - with EIN in Hand

After you have received your EIN number from the IRS, you can open a bank account.

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