Is a Tax ID Number Public Information? What You Should Know

Is a Tax ID Number Public Information? What You Should Know

Opening a business in the United States requires a number of steps, including filing for a Tax ID number. Also known as Employer Identification Number (EIN), this unique nine-digit identifier is assigned by the Internal Revenue Service (IRS) to businesses for tax filing and reporting purposes. But is a tax ID number public information? Can anyone access it? In this article, we will discuss what you should know.

What is a Tax ID Number?

A tax ID number is a unique nine-digit identifier assigned by the IRS to businesses, non-profit organizations, and other legal entities for tax filing and reporting purposes. It is also known as Employer Identification Number (EIN). It is required for opening a business bank account, hiring employees, applying for permits and licenses, and filing taxes.

Is a Tax ID Number Public Information?

Technically, a tax ID number is not considered public information. According to the IRS, EINs are not public records and are not disclosed to third parties, except in certain specific cases such as court orders or IRS requests. Therefore, if you are a business owner, you don’t have to worry about your EIN being publicly available.

However, some government agencies, such as the Securities and Exchange Commission (SEC), require companies to disclose their EINs in certain filings, such as annual reports. Additionally, if a business applies for credit or financing, the lender may require the EIN for verification purposes.

Why Should You Protect Your Tax ID Number?

Although a tax ID number is not public information, it is still important to protect it. Identity thieves can use EINs to impersonate businesses and commit fraud. For example, they can use a stolen EIN to open bank accounts, apply for credit, file false tax returns, and even create fake businesses. Therefore, you should treat your EIN as you would your personal Social Security number and keep it secure.

How to Protect Your Tax ID Number

There are several steps you can take to protect your EIN:

• Only provide your EIN to trusted parties, such as government agencies, banks, and lenders.
• Don’t share your EIN on social media, email, or other public forums.
• Shred or destroy any paper copies of your EIN that are no longer needed.
• Monitor your credit report and tax records for any suspicious activity.

Conclusion

In summary, a tax ID number is not considered public information, but it may be disclosed in certain circumstances, such as government filings and lender verification. As a business owner, it’s important to protect your EIN from identity theft by only sharing it with trusted parties and taking steps to secure it. By following these guidelines, you can ensure that your EIN remains safe and secure.

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