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Have you ever paid for something and later found out you could have gotten it for free? It might make you wish someone had told you it was free — before you paid. That’s what a lot of people have reported to the FTC about companies charging them hundreds of dollars to get their Employer Identification Number (EIN) from the IRS. But there’s no reason to pay anyone for your EIN. The IRS issues EINs for free.

You typically need an EIN from the IRS when you open a small business, a non-profit, or when you establish an estate after a loved one has passed away, among other circumstances.

Today, FTC staff sent letters to businesses selling EINs, warning them that these kinds of business have generated consumer complaints. Lookalike websites can create a false impression about affiliation with the IRS. The letters warn recipients that such practices may violate the FTC Act and the Impersonation Rule and may lead to FTC enforcement actions where appropriate.

Need an EIN? Here’s what to know:

  • Go directly to the IRS website to get an EIN for free using the IRS’s online tool. Don’t pay to get your EIN.
  • Do your research. Before doing business with a company, search online for their name and the words "review," "complaint," or "scam."
  • Report imposters to the FTC. If you see someone posing as the IRS — or any other government entity or business — report it at ReportFraud.ftc.gov.
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