Paying Sites Claiming to Provide Employer Identification Numbers are Fraudulent
Heads Up: Don't Get Swindled by Scammers
Sneaky scammers are out to pocket your cash by selling you services you can easily score for free—like government goodies, such as that Employer Identification Number (EIN) you need for your new biz. The Federal Trade Commission is sounding the alarm about phony sites posing as the IRS, charging up to $300 to file paperwork for that EIN.
Lucky for you, the EIN application is available for free—yep, zilch—on the real IRS site and takes just a few minutes to complete. To get your paws on it, you'll need to provide details about your business's legal structure and personal info like your name, address, and tax ID. Once you've wrapped up, your EIN is generated in a jiffy.
How the EIN Scam Plays Out
These swindlers are working hard to trick you into thinking they're official by using IRS seals, logos, formatting, and other goodies on their sites and ads. They often use "IRS" in their domain names, the term "EIN Assistant," or they don't disclose their shady affiliations. What's more, they'll gladly take your hard-earned cash for the "service" fees since, let's face it, EINs are free.
This deceit isn't limited to the IRS—scammers are cashing in by pretending to assist with enrollment in the Department of Homeland Security's Trusted Traveler Programs, such as TSA PreCheck and Global Entry. While these programs come with a cost, you don't have to fork over a dime for the application itself (though third-party enrollment providers may charge a smidgen more due to the TSA's contracts with them).
Applying for an EIN for the Win
If you need an EIN, you can snag one through the IRS' slick EIN Assistant tool. Just gather all your business and personal info, and you'll have your EIN in no time. Remember, never pay for something the government is offering for free. Stay smart, stay safe, and keep your hard-earned cash where it belongs—in your wallet!
Sources:
- FTC: Bogus EIN Application websites: https://www.consumer.ftc.gov/articles/0491-bogus-ein-application-websites
- Better Business Bureau Scam Tracker: https://www.bbb.org/scamtracker/
- IRS: EIN Application: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
- IRS: Fraud Alerts and Actions: https://www.irs.gov/individuals/large-losing-scams-and-consumer-alerts
- IRS: Understanding Your EIN: https://www.irs.gov/businesses/small-businesses-self-employed/understanding-your-employer-identification-number-ein-pt-1
- TSA PreCheck Fees: https://www.tsa.gov/precheck/apply/fees
Scammers are posing as the Internal Revenue Service (IRS) and offering to file Employer Identification Number (EIN) applications for a fee, but beware – the real IRS site offers this service for free. Similarly, be cautious of individuals or websites that claim to assist with enrollment in the Department of Homeland Security's Trusted Traveler Programs, such as TSA PreCheck and Global Entry, and ask for money. While there may be third-party enrollment providers with small fees due to contracts with the TSA, the application for these programs is provided by the government for free.
