Q. How is an “informal association” deposit account documented for IRS purposes? E.g., Cornhusker Bowling League, Big Red High School Reunion Committee.
A: For such an account, several people have contributed small amounts to a fund in which a representative of the group wants to set up an account to deposit these funds. Although this is an “informal association” of individuals, the IRS requires a special employer identification number (EIN) to be used with this account. The people involved in this association will probably have (informally) authorized an individual to act on the association’s behalf and that person will be named the authorized signer and have access to the funds on behalf of the association.
Q. How does a customer obtain a special EIN for an informal association account?
A: The customer can apply by mail, FAX, telephone or the internet.
The IRS has established a special “TELE TIN” telephone service through which an association, trust, estate, business, or organization can obtain an employer identification number (EIN) by following these steps:
While EIN applications may be submitted by phone, fax or mail, such applications are often incomplete, contain errors and frequently require additional contact with the applicant by an IRS employee. As an alternative, an online EIN internet application service is available at any time by accessing http://www.irs.gov/. The online application form mimics the paper Form SS-4, immediately issues a new EIN and eliminates both paperwork and the usual four-to-10 day wait to receive an EIN through paper processes.
The online application requires that all information needed to process the application be submitted before the EIN is assigned to the taxpayer. Once all the online information is completed on the application and the application is electronically submitted, the IRS will immediately assign the nine-digit EIN numbers to identify the taxpayer.
The chart appearing on the preceding article (Internal Revenue Service: Employers, Sole Proprietors, Corporations, Partnerships, Non-Profit Organizations, Trusts and Estates, Government Agencies, Certain Individuals and Other Business Entity Accounts TIN Documentation) gives the FAX numbers and addresses where a Form SS-4 may be filed.