Fraudulent Websites Requesting Payment for Your Employer Identification Numbers Should Be Avoided
Warning: Scammers are Making a Pretty Penny by Selling You Government Services You Can Get for Free – Watch Out for IRS EIN Scams!
Stay sharp, folks! Scammers are crafty and love to pocket hefty sums by peddling you services you can easily obtain for free – like government services, such as EINs from the IRS. The Federal Trade Commission is sounding the alarm about fraudulent websites pretending to be the IRS and charging up to $300 for EIN applications.
So, what's an EIN, you ask? An EIN, or Employer Identification Number, is a necessary corporate identifier for filing taxes, required for anyone launching a business, estate, or nonprofit, as well as for households with staff like nannies. The good news? The EIN application is available for zilch on the actual IRS website, making it a breeze to complete in just a few minutes.
How the EIN Scam Operates
Be on the lookout for these sly tricks scammers are using to dupe you:
- Decking out their websites with IRS seals, logos, formatting, colors, fonts, layouts, and imagery, or incorporating "IRS" in their domain names/websites
- Adopting the term "EIN Assistant"
- Failing to mention that they're not affiliated with the IRS
- Hiding the fact that their fees are purely services, as EINs are genuinely free
Be warned – scammers are up to much more than just EIN scams. The Better Business Bureau has traced online services charging individuals for enrolling in the Department of Homeland Security's Trusted Traveler Programs, like TSA PreCheck and Global Entry, which do require fees, but not for the application itself (note that TSA PreCheck works with several third-party enrollment providers, with total fees ranging from $67 to $78).
Obtaining an EIN – The Legit Way
If you genuinely need an EIN, fire up the IRS' EIN Assistant tool. All you need to do is provide information about your business' legal structure and personal details like your name, address, contact information, and tax ID.
You'll get your EIN on the spot once you complete and verify the application, and the whole process won't take longer than 15 minutes if you have all your info on hand.
Key Points to Remember:
- Be wary of fishy websites/emails promising EINs for a fee, and never pay for something the IRS offers for free on their official website
- Stick to the IRS' official channels when applying for an EIN to avoid third-party scalpers and identity theft
- Keep your EIN information safe to secure your business from identity theft and fraud
- Bolster your business' security measures by using anti-virus software, strong passwords, and multi-factor authentication
- Verify any communications claiming to be from the IRS before providing personal information or paying fees related to your EIN or IP PIN.
- The Federal Trade Commission is sounding the alarm about fraudulent websites pretending to be the IRS and charging up to $300 for EIN applications, which are actually free on the IRS's official website.
- If you genuinely need an EIN, fire up the IRS's EIN Assistant tool instead of falling victim to IRS EIN scams, as the application is quick, typically taking less than 15 minutes to complete.
- Scammers are up to more than just EIN scams; the Better Business Bureau has traced online services charging individuals for enrolling in the Department of Homeland Security's Trusted Traveler Programs, like TSA PreCheck and Global Entry, although the application fees for these programs are legitimate, but not for the application itself.
- To safeguard your finance and business, be vigilant against employer identification number scam attempts and verify any communications claiming to be from the IRS before providing personal information or paying fees related to your EIN or IP PIN.
