When Applying for an EIN, They Want my Social Security Number!

Homeschool leader, Paula, was applying for an EIN (Employer Identification Number) online, but the IRS website asked for her SSN (Social Security Number). She is reluctant to give it out. Should she be concerned?

Someone (the “responsible party”) must give their Social Security Number (SSN) so that the IRS can always trace leadership of a nonprofit (or a business) to a human being. The IRS wants the name and Social Security Number of a specific individual it can contact if needed. Requesting a name and SSN is also meant to prevent people from setting up dummy or scam organizations.

1.     The homeschool group is brand new and needs an EIN to open a checking account in the group’s name.

2.     The organization needs a new EIN after it incorporates as a nonprofit corporation in their state.

Who is the Responsible Party?

You can request the IRS remove your name from the EIN when you step down from being treasurer.

Also listen to podcast #81 How can we change the contact name on our EIN?

If you have questions about applying for an EIN or the Form SS-4, read the chapter on “Checking Accounts Done Right” in my book Money Management in a Homeschool Organization

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This 115 page book will help you to open a checking account, establish a budget, prevent mistakes and fraud, use software to keep the books, prepare a financial statement, and hire workers. Sample forms and examples of financial statements in clear English are provided.

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