Verification of Federal Tax ID Number
A federal tax ID number, or Employer Identification Number, is used for business tax reporting purposes. When your business or organization begins working with a new company or contractor, verify that the federal tax ID number is valid so you can report expenses properly at tax time.
Verifying Federal Tax ID Numbers
According to the Data Privacy & Integrity Advisory Committee Report No. 2008-02, "The Employer Identification Number (EIN), if validated, can be instrumental in verifying the identity of an organization. However, validating the EIN through the Internal Revenue Service (IRS) database is challenging due to the legislative constraints on the use of the data." However, if you are a private business owner with a legitimate need to verify a federal tax ID number, you have several options.
KnowX
KnowX is a company that offers a free verification tool for businesses and individuals to check a federal tax identification number. A single search is free, although you'll have to pay for multiple searches. Enter the number into the tax ID search box and click "Search." The system will verify that it is a correct ID number and will give you the business' name and location.
Internal Revenue Service
Federal tax ID numbers are issued by the IRS. If you are a business or organization with a valid reason for needing to check the validity of a federal tax ID number, you can call the IRS' business and specialty tax line for assistance at 877-829-5500. The operator will ask you to provide identifying information about you and the business you want to verify. He will then confirm that the number is valid.
HIPAA Compliance Validation Service
The Health Insurance Portability and Accountability Act, HIPAA, provides for health care coverage for workers and their families who lose their jobs and sets standards for electronic health care transactions. As part of this service, HIPAA provides a way for you to check if a federal tax ID number is valid through the HIPAA Compliance Validation Service (see Resources); type the Federal Tax ID Number into the text box and click "Validate."
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