An Employer identifying Number (EIN), obtained by a company or nonprofit organization, is meant to be a permanent identifying number used for tax purposes. A company or organization may occasionally need to revoke their EIN number, though. Can you, however, revoke an EIN number? The quick answer is yes, but the procedure can be challenging and may call for you to adhere to specific rules.
Prior to canceling an EIN, make sure that all tax obligations have been satisfied. Included in this are submitting all required tax returns and paying any unpaid taxes. Once you’ve done this, you can ask the IRS to cancel the EIN number in writing. The whole legal name of the entity, the EIN number, the justification for the cancellation, and the signature of an authorized person must all be included in the request.
Although it is technically feasible to cancel an EIN number, it’s vital to remember that this doesn’t happen frequently. Most companies and charitable organizations will continue to use their EIN number for the length of their existence. A change in the organization’s structure or the dissolution of a nonprofit organization, for example, may necessitate the cancellation of an EIN number.
There are particular actions a nonprofit organization must take in order to formally close with the IRS. You must first submit your final tax return and settle any unpaid taxes. Depending on the size of your company, Form 990-N, 990-EZ, or 990-PF must also be submitted. After submitting these papers, you can use Form 990-EZ or Form 990-PF to request the cancellation of your tax-exempt status.
It’s crucial to remember that any assets left over when a nonprofit dissolves must be given to either the government or another tax-exempt organization. If you don’t, you risk fines and legal repercussions. Additionally, it’s crucial to submit dissolution paperwork to the state where the nonprofit was incorporated.
In conclusion, it is feasible to cancel an EIN number, but it doesn’t happen often. Make sure all tax obligations have been satisfied before requesting the cancellation of your EIN number in writing to the IRS. In order to dissolve, a nonprofit organization must submit its last tax returns, request the revocation of its tax-exempt status, disperse its remaining assets, and file the necessary state paperwork. You can ensure a smooth transfer and keep any legal issues at bay by adhering to these rules.
An official legal document known as a Notice of Dissolution is used to inform the state that a business entity is ending operations and dissolving. It should be sent to the state where the company was registered and normally contains details such the name and address of the company, the cause of the dissolution, and the date on which the dissolution took effect. It is a crucial stage in the procedure for revocation of an EIN for a business organization.