A Federal Employer Identification Number (FEIN) is a unique identification number assigned by the United States Internal Revenue Service (IRS) to businesses and other entities. This identifier is crucial for various purposes, including tax reporting, employment tax withholding, and opening bank accounts.
The FEIN system, introduced in the 1960s, has significantly streamlined tax administration and compliance. It allows the IRS to efficiently process tax returns, track business activities, and enforce tax laws. For businesses, obtaining a FEIN is essential for conducting financial transactions, complying with tax regulations, and maintaining a positive business reputation.
