Reference number 101 is frequently encountered while requesting an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). The IRS uses this reference number as a processing code to indicate applications that need more examination or processing before being issued an EIN.
Applications with missing, incorrect, or conflicting information, such as names, locations, or tax classifications, are often given the reference number 101. It may also be given to applications submitted by international organizations or people because these applications need more support materials and verification.
If reference number 101 is given to your application, it does not necessarily imply that there is a problem. It only indicates that more investigation or processing is necessary before an EIN can be given. The IRS may get in touch with you to ask for more details or clarification on your application. Should You Share Your EIN Number with Others?
It’s critical to safeguard your EIN number after you get it, just as you would your Social Security number. Your EIN number is required to create business bank accounts, apply for credit, file tax returns, and identify your company for tax purposes.
Sharing your EIN number with reputable individuals like your accountant, lawyer, or bank is normally safe. However, you should exercise caution when disclosing your EIN number to anyone who asks for it, particularly if you don’t know them or what they’re trying to accomplish.
Scammers might open credit cards in your company’s name or file false tax returns using your EIN number. Only give out your EIN number to anyone you can trust, and keep an eye on your credit reports and tax filings for any suspicious behavior.
Finally, reference number 101 is a processing code that the IRS uses to identify applications that need further examination or processing before an EIN can be issued. If reference number 101 is given to your application, it does not necessarily imply that there is a problem. Additionally, it’s critical to safeguard your EIN number and to only divulge it to reliable individuals in order to stop fraud and identity theft.