When You Get Your EIN, When Can You Use it to Make Tax Deposits?

Tax deposit

An Employer Identification Number (EIN), or Federal Tax Identification Number (FEIN), or Federal Employer Identification Number (FEIN), is a unique number assigned to most business entities by the Internal Revenue Service (IRS) for tax and identification purposes. IRS-EIN-Tax-ID provides an online application EIN processing and filing service for businesses, estates, trusts, non-profit organizations, and church-controlled organizations.

Who is Required to Obtain an EIN?

Most businesses are required to obtain an EIN. You may be required by the IRS to apply for an EIN if you fall under any of these circumstances:

  • You have employees.
  • Your business is taxed as a partnership, C corporation or limited liability company.
  • Your business has a Keogh plan.
  • You withhold taxes on income paid to a non-resident alien.
  • Your business is involved with estates, trusts, employee plans non-profit organizations, real estate mortgage investment conduits, or farmers’ cooperatives.
  • You file excise taxes, or alcohol, tobacco, and firearm taxes.

You may still be required to apply for an EIN even if your business does not fall under one of those categories. This includes if you want to apply for a business loan or open a business bank account.

When Can I Use My EIN?

An EIN is used for many purposes. If you applied for an EIN electronically, this number can be used immediately for the following reasons:

  • Filing tax return by mail
  • Applying for business licenses
  • Opening a bank account

However, it may take up to fourteen days before the EIN becomes a permanent record with the IRS. Until that time occurs, you are unable to make an electronic tax payment, file an electronic return, or pass an IRS TIN matching program.

For a fast, easy solution for applying for an EIN, including an estate EIN, and a Tax ID for trust, visit IRS-EIN-Tax-ID online.

How Do I Know I Need a TIN?

As a business owner or a person in charge of running an estate, you may be asking yourself, do I need a TIN? As you startup a business or you’re considering starting up, there are a lot of things that go into that planning and getting the business running. Determining whether a TIN is a necessary item is just one of those. Here are a few tips to know if you need to apply for federal tax id number before you get other aspects of your business running.

Will You Have Employees?

If you plan on ever having employees for your business or even if you have staff at your home, you’re going to need a TIN. This will alleviate potential tax filing issues later on and makes it easier for your staff members as well when they file taxes.

Business Banking

Whether you need to open up a business line of credit or you need a banking account with your business name on it, you’re going to need a tax id number as part of your paperwork. This is a crucial piece of paperwork you will need before opening up accounts in your businesses name so you can keep the business assets separate from your personal ones.

Change Business Types

If you decide to incorporate or form an S-corporation, it is important to have an IRS EIN tax id number as well. This is needed any time you change the type of business entity you have as well.

Obtaining a TIN is easier than you might think. With the online application at IRS-EIN, you can have your tax id number the same day you apply. It’s an easy process and the government assistants are standing by to help you along the way to make sure everything is in order.

Whether you’re a small business owner or you run an estate, you need to look into getting a TIN for your tax purposes.

Apply for a Federal Tax ID in Wyoming

apply-for-einWhether you are running a business or just trying to live your life, one of the most important things you will do all year is fill out your taxes. This simple act has the potential to affect your life in many ways, so it is important to be accurate and prompt. This includes understanding what kind of documentation and identification you might need in order to complete all the necessary forms. An employer identification number (EIN), for example, is a commonly used form of identification by business and homeowner alike. If you need an EIN number in Wyoming, IRS-EIN can help.


Why do I need a tax ID number in Wyoming?

First of all, you might not need a tax ID number in Wyoming. If you are running a business or handling an estate or trust, however, then you very well might need one in order to keep everything running smoothly come tax time. A business corporation or partnership, for example, with employees is likely to need a tax ID in Wyoming. So will businesses planning on filing for an excise tax return, an employment tax return, or an alcohol, tobacco, and firearms tax return. Additionally, estates or trusts acting as an entity will likely necessitate the use of an EIN number in Wyoming.

If you have any of the following household employees, you also might need to apply for a tax ID in Wyoming:

  • Maid
  • Health Aide
  • Cleaning Person
  • Caretaker
  • Private Nurse
  • Babysitter

Apply for a Tax ID in Wyoming Today

If you need an EIN number in Wyoming, allow us to help. IRS-EIN understands the importance of providing an easy application, and will help you obtain your tax ID number in Wyoming. Begin the application process and visit IRS-EIN-Tax-ID.com today.

The Biggest Tax Mistakes Are Usually The Easiest to Avoid

tax deadlineMost of us send our tax forms off in mid-March, watch our refunds get deposited into our bank accounts and then breathe a sigh of relief that we don’t have to worry about the hot mess that is taxes until the following winter. Believe it or not, though, waiting until the eleventh hour, trying to claim everything that even remotely applies to you and hoping for the best really isn’t the best strategy. In fact it is one of the biggest tax mistakes you can make (and one that is really easy to fix).

The simple fact is that a lot of us make mistakes on our taxes. Those mistakes are, for the most part, really easy to avoid. Here are some of the other major tax mistakes that can lend you in hot water and what you can do to avoid them.

1. Not Keeping Up With Tax Laws

Tax filing season is January-April 15. Tax deciding season is year round. The tax code is constantly being argued over and refined. Keeping tabs on tax laws is important, especially for making sure that those deductions and credits you were counting on are still applicable. A lot of people got caught this past year after buying a bunch of energy efficient appliances and then finding out that they wouldn’t be able to claim those things on their taxes after all.

Keeping tabs on tax rules and codes doesn’t have to be complicated. A simple Google alert will do it. Or you could follow the news on social media via tax professionals’ Twitter feeds (like the Authority Tax Services Twitter feed) or setting up a feed for tax-related trending topics.

2. Avoiding Tax Debts

One of the worst feelings in the world is finding out that you owe money to the IRS—especially if you were counting on a refund. Even if the amount is substantial, the IRS will work with you to come up with a plan to pay off that debt. Remember: the IRS’s primary goal is to get paid. They’d rather take small monthly payments over a couple of years than not get anything from you at all.

Whatever you do, don’t try to hide from your tax debt, says Authority Tax Services expert Vikas Singh. If you can’t afford to pay or paying would result in a financial hardship there are experts out there who can help you navigate the system and maybe even negotiate down the amount that you owe. Running will only increase what you owe and it might even land you in jail.

3. Failing to Pay Estimated Taxes

If you are self employed or run your own business, you have to pay estimated taxes throughout the current year. Then you claim that amount on your annual tax forms. If you over paid, you should get a refund. Most likely you’ll still wind up owing some money to the IRS but trust me when I tell you that it will be far less than you would owe if you tried to just pay off your taxes every year. The penalties for failing to pay your Estimated Taxes are steep.

Even if you are currently paying on a past year’s tax debt, you need to pay your Estimated Taxes. If you can’t afford to pay both, call the IRS and talk to a case worker. They might be able to reduce your debt payments or put your debt payments on hold for a couple of months.

These are just three of the biggest and most easily avoided tax mistakes that people make. Did we leave anything out? Let us know!

Photo credit: Tax Day Image

Where to Spend Your Hard Earned Tax Refund

If you received a tax refund this year, think twice before celebrating. A tax refund is not a year-end gift from the government. If anything it is a reminder to double check your W-4 and revisit your withholdings. Any money that you receive in the form of a refund is money that could have been invested or working for you in some other way. Instead, you loaned it to Uncle Sam at a nice zero percent interest rate. When it comes to tax refunds, coming as close to possible to netting out is the ideal circumstance. In the case that you do receive a refund however, there are several ways that you can use it in order to return the most value to you.

1. Pay Off Debt

Whittling down your pile of debt is often times a task that can seem to provide no value or return. This is especially the case when you can only afford to make small payments and the balance is slowly reduced month after month. Throwing your tax refund at debt is an immediate solution for significantly reducing debt as well as reducing the amount of interest you pay each month.

2. Establish an Emergency Fund

Saving for emergencies or misfortune is never something that is fun to plan for. Regardless, being prepared for such events can often save an individual from financial disaster. Not only that, but knowing that you are financially prepared for most events provides peace of mind which is oftentimes more valuable than anything that money can buy. It is recommended to have at least three months of expenses saved, but some financial gurus would go as far as to say that six months to a year should be on standby for rainy days. Using some form of personal financial software package can make this process much easier. Depending on your personal situation, there are several routes you can take when planning for emergencies.

3. Save for Retirement

With all of life’s other expenses and goals, something as far in the future as retirement can be pushed aside for present day goals. It is already the case that the average American is not saving enough for retirement. Is is never too late to start, nor is it ever too early. Any time extra cash is available it should be socked away into retirement so that it can grow with time. Using an entire refund is a great way to catch up or add to your already established nest egg.

4. Refinance Your Home

There is no better time than now to take advantage of the all time low mortgage rates. If you are thinking of buying a home, or already own one, locking in a low interest rate is a sure fire way to save money in both the short and long term. A refund can be used towards closing costs and fees in order to make the immediate expense of buying or refinancing more bearable.

5. Give to Charity

Sometimes the most return that you can get for a dollar is not mathematically measurable. Giving to a charity of your choice can be more rewarding than any dividend payment could be. The tax advantages that come with donations are an added benefit.

Treating every dollar that comes into your possession with the same amount of consideration in how it can add value to your life is a skill that comes with patience and determination. Putting off a big ticket purchase for a week is usually all it takes to realize that your money can be better spent elsewhere. Regardless of how your refund ends up being used, it is important to use it in a way that will provide you with the most valuable return.

What to do Wednesday in Personal Finance? Is the Adjustable Rate Mortgage becoming extinct?

Monopoly, interest rate, interest rates, adjustable rate mortgage, arm, fixed rate mortgage, vha

I was reading an article last week that made the motion that adjustable rate mortgages (ARM) are dying.  For starters, adjustable rate mortgages are loans where the interest rate changes periodically.  Generally they are a good option when you are buying a house and the prevailing fixed rate mortgages rates are high.

This notion did not surprise me because interest rates are at historic lows for fixed rate mortgages.  You would be silly not to lock in a mortgage at these rates now, the interest rates are likely not going to get any lower than they are in your life time.  Listen they are at rock bottom now, I was having a water cooler discussion at work just looking for a consensus with my older  wiser co workers to see if they had ever seen or remember rates this low and none of them could! 

What do you think?  Do you have an ARM?  What was your reasoning for going with an ARM vs a fixed rate? 

Well my wife and I have a fixed rate loan.  We thought a few years ago that we had to lock in quick on our rate which is 5.00%, so we locked in at the onset of going through the process to secure the mortgage.  Little did we know that rates would continue to plummet!  Right now rates on a 30 year fixed rate mortgage are around 3.86% according to Bankrate.com.   

According to the Valentine’s Day press release from Freddie Mac, 95% of refinances were to fixed rate loans.  Historically, the ARM loans were great for people looking to have low fixed interest payments at the beginning of the loan then the variable afterward.  Why the great exodus from adjustable rate mortgages? 

Present fixed rate mortgages offer historically low interest rates.  You can lock into a 15 or 20 year loan at payment close to that of a 30 year in the past.  Rates on 15 and 20 year fixed rate loans have generally are a fraction of a percentage point lower in interest as well for the shorter term.  Homeowner fear of rising interest rates has caused a surge in refinance activity in the recent months.  Rates cannot go below 0% and 3.86% is pretty darn close to that, so why not a fixed rate? 

Just my two cents on the fixed rate mortgages, I do not think you will in the near future see lower rates than we are currently seeing today.  The Federal Reserve and Ben Bernanke do not see any interest rate increases in the foreseeable future. 

Get out there and get it refinanced or that dream house you were talking about!  But remember to fit it into your budget and make sure that you will indeed break even in your refinance. 


PHOTO BY: woodleywonderworks