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Obtaining an EIN from the IRS

Learn how to easily obtain an Employer Identification Number (EIN) for your AFE Chapter and comply with IRS requirements. |

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Obtaining an EIN from the IRS

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  1. Obtaining an EIN from the IRS Paul R. Mitchell, P.E. Treasurer AFE Region IV May 17, 2003

  2. What is an EIN? • An EIN is an “Employer Identification Number” issued by the United States Internal Revenue Service • An AFE Chapter must obtain an EIN, even if the chapter does not employ anyone • An EIN is a “Taxpayer Identification Number” (TIN) that identifies a unique taxable entity

  3. Why obtain an AFE Chapter EIN? • Internal Revenue Code section 506(a) defines AFE Chapters as separate tax entities, separate from AFE. • Chapter bank accounts must be separate from AFE, and must not use the AFE tax identification number (EIN) for annual tax reporting.

  4. What is the EIN application process? • Applying is easy • Use Internal Revenue Service Form SS-4 • Visit web site http://www.irs.gov to download the form and instructions

  5. What are some helpful tips? • AFE and AFE chapters meet the definition of a “Business League” in IRS tax code section 501(c)(6) • 1) Suggested format: “Association for Facilities Engineering – Chapter nn location”; where “nn” is your chapter number and “location” is your chapter location (i.e., Silicon Valley)

  6. What are some more tips? • 7b) Do NOT enter an AFE Chapter officer’s personal Social Security Number (SSN) on the application. Type “Officers change annually” in the SSN box. • 8a) Select “Other non-profit organization” and “Business League” when describing the “type of entity”

  7. Any more tips? • 8a) (continued) – obtain the non-profit Group Exemption Number (GEN) from AFE (when the IRS finally issues the GEN!) • 9) Reason for applying – select “Other” and type “chapter creation” • 10) Date started – “January 1, 2003” • 11) Accounting close – “December”

  8. Tip bag empty yet? • 14) Principal activity – type “Advance science of facilities engineering” • 15) Services provided – type “Education of facilities engineering members” • Sign and date the application • Fax the application to the IRS office listed in the Form SS-4 instructions

  9. Is there one final tip…or two? • Just because your AFE Chapter obtains an EIN does NOT mean your chapter has to file an annual income tax return • Income tax returns are only required after your chapter has a three-year history of revenues exceeding $25,000, on average

  10. What is the summary? • EIN application: IRS Form SS-4 • Applying is easy • Your AFE Chapter EIN should arrive in the mail within two weeks

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