These Websites That Charge You for Your Employer Identification Number Are a Scam
Scammers can make a lot of money by selling you something that you can actually get for free, such as government services. The Federal Trade Commission is warning consumers about scam websites that claim to be affiliated with the IRS and charge up to $300 to file for an Employer Identification Number (EIN).
The EIN application is available for free on the actual IRS website and only takes a few minutes to complete. An EIN, which is a corporate tax filing identifier, is required for anyone starting a business, real estate, or non-profit organization, as well as those who have household employees (such as a family hiring a nanny).
How EIN Fraud Works
Services identified by the Federal Trade Commission impersonate the IRS or misrepresent their affiliation in one or more of the following ways:
-
Use of IRS seals, logos, formatting, colors, fonts, layouts and images on its websites and advertising.
-
Using “IRS” in your domain names or on your websites.
-
Use of the term “EIN Assistant”
-
Failure to disclose that they are not affiliated with the IRS
-
It is not disclosed that the payments represent a 100% service fee since EINs are free.
This isn’t the only way scammers profit by “helping” consumers apply for government services. The Better Business Bureau monitors online services that charge people to enroll in the Department of Homeland Security’s trusted traveler programs , such as TSA PreCheck and Global Entry. These programs cost money, but you don’t have to pay for the application itself. (Please note that TSA PreCheck contracts with several third-party check-in service providers , with total costs varying slightly from $67 to $78.00.)
How to Apply for an EIN – Free
If you really need an EIN, you can fill out an application using the IRS’s EIN Assistant tool . You will need to provide information about the legal structure of your business, as well as personal information such as your name, address, contact information and tax identification number.
Your EIN is generated immediately once completed and verified, and the entire process takes less than 15 minutes if you have all the information.