How to resolve the 101 Error from the IRS EIN application tool
The Internal Revenue Service does offer an online application tool for receiving EIN numbers. An EIN, or Employer Identification Number, is the number a business needs to report and pay employee withholding taxes. As with anything involving the IRS, though, it’s not always easy to make this online tool work for you. Many people or businesses that apply for an EIN online receive a 101 error and then face a lengthy, tedious process to obtain an EIN number. Something as simple as phoning the IRS for assistance when completing this online application can become a nightmare of lengthy and confusing calls.
What Does the 101 Error Mean?
Error code 101 in the EIN application of the IRS online process can mean a variety of things depending on what type of entity you are. A sole proprietor might face a slightly different problem than an LLC, for example. Specifically, a 101 error code means there is a name conflict of some kind with your application. The IRS requires a unique entity name on online EIN applications similar to the requirements for incorporating your business within a state. Since the IRS handles transactions from across the nation, you could experience an issue if your name is too similar to another business, even if the other business is in another state.
Another reason you might experience problems with the online IRS EIN application is that you or the entity has been listed as the responsible party on a previous online EIN application that was approved. The IRS doesn’t allow an entity or person to be listed as the responsible party on more than one EIN application that is processed online.
How Can You Resolve the Error and Receive an EIN Number?
If you receive an error code 101 in the IRS EIN application, it can be tedious to resolve the issue. You might have to apply for the EIN through fax or mail channels, and most likely you’ll have to spend a great deal of time on hold and speaking to IRS representatives on the phone. In some cases, you might have to provide the IRS with additional proof of your business or entity name, including copies of Articles of Incorporation or other formation documents.
Obviously, it’s important to ensure your EIN application is completed accurately and every detail is correct. A tiny typo on the form can mean the difference between sailing through to receipt of your number or dealing with the pain of an error code. The same is true if you do end up dealing with an application issue. You’ll need to make sure you document all your phone calls and provide the IRS with concise, accurate information if you want to receive an EIN at all.
Seeking Help to Reduce this IRS-Related Pain Point
Receiving a 101 code from the IRS’s online EIN application system does, unfortunately, mean lost time and frustration for you. With Citizen you can get your EIN online even with a 101 error.
We are experienced in resolving these types of issues, and what might take you hours on the phone could be resolved through our technology in a matter of clicks by clicking here.