Scammers can make good money by selling you something you can actually get for free—like government services. The Federal Trade Commission is alerting consumers to fraudulent websites that are claiming to be associated with the IRS and charging up to $300 to file paperwork for obtaining an Employer Identification Number (EIN).
The EIN application is available for free on the real IRS website and requires just a few minutes to complete. An EIN, which is a corporate identifier for filing taxes, is required for anyone opening a business, estate, or nonprofit as well as those with household employees (such as a family hiring a nanny).
How the EIN scam works
The services identified by the FTC are impersonating the IRS or misrepresenting their affiliation in one or more of the following ways:
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Using IRS seals, logos, formatting, colors, fonts, layouts, and imagery on their websites and ads
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Using “IRS” in their domain names or on their websites
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Using the term “EIN Assistant”
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Failing to disclose that they are not affiliated with the IRS
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Failing to disclose that payments are 100% service fees, as EINs are free
This also isn’t the only way scammers are profiting off of “helping” consumers apply for government services. The Better Business Bureau has tracked online services that charge people to enroll in the Department of Homeland Security’s Trusted Traveler Programs , such as TSA PreCheck and Global Entry. These programs do cost money, but you don’t have to pay for the application itself. (Note that TSA PreCheck contracts with several third-party enrollment providers , with total fees varying slightly from $67 to $78.)
How to apply for an EIN—for free
If you do need an EIN, you can complete the application using the IRS’ EIN Assistant tool . You’ll need to provide information about the legal structure of your business as well as personal information like your name, address, contact information, and tax ID.
Your EIN is generated immediately upon completion and verification, and the whole process takes fewer than 15 minutes if you have all of your information ready.
