Do I Have To Renew My EIN for a Nonprofit Yearly?

Thursday, December 27, 2018

Once a charitable organization is awarded an employer identification number, or EIN, there is no need to renew this application. The only reason a nonprofit would be required to submit a new application for a different EIN is if its organizational structure, mission or nonprofit status changed.

Employer Identification Number Vs. Tax-Exempt Status

It’s easy to confuse an organization’s EIN with the approval of 501 (c)(3) or 501 (c)(4) tax-exempt status from the IRS. What is the difference?

·        IRS-EIN-Tax-ID: Your organization’s EIN, or tax ID number, is similar to the social security number of an individual. Its purpose is simply to identify the organization with the IRS. This is number used on annual report filings.
·        501 (c)(3) tax-exempt status: When a charitable organization’s request for tax-exempt status is approved, the IRS simply sends a type of confirmation called a determination letter. Your nonprofit will continue operating normally, using the same EIN, but now it is considered tax-exempt by the IRS.

Like the EIN, once a nonprofit receives a 501 (c)(3) or 501 (c)(4) designation, they do not need to apply for it again in the future, unless the type or structure of the organization changes.

When To Apply For an EIN Number Wisconsin

How should a charitable organization in Wisconsin go about getting an EIN number nonprofit and tax-exempt status? The first step is to choose the organization’s directors. Once you have selected at least three directors, you can take the next steps:

·        Register a name for the organization
·        File articles of organization for nonprofits
·        Fill out an application for EIN with the IRS
·        Apply for tax-exempt status using IRS form 1023

Do You Need Additional Help Securing a Tax ID Number?

The only thing most nonprofits are required to file annually is the 990 or 990-EZ annual information return. You will need an EIN to submit this documentation. To streamline the application process and have access to valuable help, contact the professionals at IRS EIN Tax ID Filing Service right away.

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