If you have a trust, you will need a Tax ID / EIN Number. The application process you take to get the number will vary on which you are most comfortable with: online, via mail or fax. Many prefer to use a professional 3rd party service as to ensure proper compliance with the Internal Revenue Service as the best approach. Read more to learn about the differences in EIN applications.
Steps to Applying for a Trust Tax ID (EIN) Number
- Prepare Mandatory Business Information
- Apply for a Trust Tax ID (EIN) Number Online
- Apply for a Trust Tax ID (EIN) Number via Mail or Fax
- How Do I Obtain a Tax ID (EIN) Number for my Trust?
- How Long Does it Take to Obtain a Tax ID (EIN) Number for my Trust?
- Why Do I Need a Tax ID (EIN) Number for my Trust?
The process to get a Tax ID Number for a Trust begins with nailing down all the mandatory business information. You need a set of information at the ready in order to complete the IRS EIN application process. Some of the details you must have included the principal address of the business, understanding of the industry it resides (if applicable with a trust), etc. You also need to detail out the responsible party.
The responsible party of a business is the individual which controls and manages the assets, as well as funds of the organization. When you name the responsible party, you are naming the person that will do all interaction with the Internal Revenue Service, when necessary. The responsible party must be an individual and cannot be an entity. The responsible party also needs an individual identifier, such as a Social Security Number. The information you submit for the business owner information and the responsible party will go through a validation process with the Internal Revenue Service.
There are a variety of paths to obtaining a nine-digit and unique Tax ID (EIN) Number. The easiest path to obtaining the number is by going through the online application process. The Internal Revenue Service, in an attempt to go paperless and also speed up processing, takes the entire application and puts it into a virtual environment. You can access the entire thing right through the Internal Revenue Service website.
Accessing the form online to obtain a Tax ID (EIN) Number is easy and you can accomplish this via a web browser on virtually any device. You can get to the online form through a laptop, desktop, tablet, even a phone depending on its capabilities.
Once you locate the online form, you are filling in all information you would normally fill in if you had it via standard paper. After you complete everything and submit it, you go through a near-immediate approval process where they validate and return to you all appropriate information. In the information packet, they send back, you will have the nine-digit Tax ID (EIN) Number.
The other two popular ways to apply for a trust Tax ID (EIN) Number is through the mail or fax. While the online mechanism is definitely the quickest and easiest, many will still opt to print out the paper application and go with one of these two methods of applying.
The mail application method has you filling out the form and submitting it to the Internal Revenue Service. You complete the paper form via PDF or through the standard pen and paper approach. When you finish up with the application, you want to put it into an envelope with the appropriate postage. Once you are set, send it off to the Internal Revenue Service for processing.
The fax application method is like the mail method, only you are not relying on the U.S. Postal Service or similar delivery company. You complete the paper application and figure out the appropriate fax number to send it over to the Internal Revenue Service. After getting the fax number and entering it into the fax machine, send over the full application. You will get a fax confirmation in return and then wait for the final processing by the IRS.
There are a variety of ways to obtain a Tax ID (EIN) Number for a trust. You have the online application method as the cleanest, quickest, and simplest mechanism. That method will take the cake in terms of simplicity, ease, and speed. You also have a few other ways to obtain a Tax ID (EIN) Number for the trust. The fax and mail application methods exist for those looking for more of a traditional application route, but they will take longer.
The great thing is that no matter which application method you choose, you are going to get your nine-digit and unique Tax ID (EIN) Number as long as the information you submit gets validation.
The length of time it takes to obtain a Tax ID (EIN) Number for a trust will vary depending on how you apply. When you apply with the online application method, you should have the Tax ID (EIN) Number back to you in a matter of minutes. The entire online application process, from start to finish, should take no longer than fifteen to twenty minutes.
When you apply through the fax method, you can expect to get the Tax ID (EIN) Number back in a matter of days, usually five business days or so. The fax method is the second fastest in comparison to the online application method.
The mail application process will take the longest, requiring you to wait for around two weeks in full before you have the nine-digit Tax ID (EIN) Number back to you in the mail.
You need a Tax ID (EIN) Number for your trust for all your Internal Revenue Service reporting needs. To file a trust tax return, you will need a unique identifier. If you want to open up any financial accounts or anything in relation to the trust, you will also need the Tax ID (EIN) Number.
The Internal Revenue Service requires trust tax reporting and the Tax ID (EIN) Number is a big part of that process. There are a lot of paths you can take to obtain a Tax ID (EIN) Number, and which you choose will alter the length of time it takes and effort it requires to get the number in-hand.