What to Do If Your EIN Is Stolen
If your Employer Identification Number (EIN) is stolen, it can lead to serious consequences for both you and your business. An EIN is a unique nine-digit number issued by the Internal Revenue Service (IRS) to identify a business entity for tax purposes. When your EIN is compromised, it can be used by unauthorized individuals to commit fraudulent activities, such as filing false tax returns or opening bank accounts in your name. In this article, we will discuss the steps you should take if your EIN is stolen to minimize the damage and protect your business.
1. Contact the IRS Immediately
The first step you should take if you suspect your EIN has been stolen is to contact the IRS immediately. You can do this by calling the IRS Identity Protection Specialized Unit at 1-800-908-4490. Be prepared to provide the IRS with your personal information, such as your name, address, and Social Security number, as well as information about your business, including the EIN and the date it was issued.
2. File a Report with the IRS
After contacting the IRS, you should file a report with them. This report will help the IRS investigate the theft and take appropriate action to protect your EIN. You can file a report online through the IRS website or by mail using Form 14039, “Identity Theft Affidavit.”
3. Change Your EIN
If the IRS confirms that your EIN has been stolen, you may need to change your EIN. This process involves applying for a new EIN and updating all relevant records and documents with the new number. It’s important to note that changing your EIN does not affect your business’s legal or tax status.
4. Notify Your Bank and Credit Card Companies
To prevent unauthorized transactions, you should notify your bank and credit card companies about the theft of your EIN. Provide them with the necessary information to monitor your accounts for suspicious activity and take appropriate action if needed.
5. Monitor Your Credit Reports
Regularly monitoring your credit reports can help you detect any fraudulent activities related to your EIN. You are entitled to a free credit report from each of the three major credit bureaus once a year. Review your credit reports carefully for any discrepancies or suspicious activity.
6. Update Your Business Records
Ensure that all your business records, including contracts, invoices, and financial statements, are updated with the new EIN. This will help prevent any future confusion or legal issues.
7. Educate Your Employees
Educate your employees about the importance of protecting your EIN and the steps they should take if they suspect any unauthorized use of the number. This will help create a culture of security within your organization.
In conclusion, if your EIN is stolen, it’s crucial to act quickly and take the necessary steps to protect your business. By contacting the IRS, changing your EIN, and monitoring your accounts, you can minimize the damage and prevent further fraudulent activities. Always stay vigilant and proactive in protecting your business’s sensitive information.
