Employer Identification Number
SSNs are considered sensitive information and can be used to perpetrate identity theft, thus they are only shared in limited situations, for example, with employers, government entities, insurance agencies, and banks.The EIN serves a similar administrative purpose as a SSN, but for a business entity rather than an individual person.Unlike a SSN, an EIN is not considered sensitive information and is freely distributed by many businesses by way of publications and the internet.The authority for EINs is derived from 26 USC 6011(b), requiring taxpayer identification for the purpose of payment of employment taxes.[5] The issuance of an EIN to a non-profit organization does not automatically grant tax-exempt status from the IRS, which must be obtained separately.Almost all organizations that apply for EINs can have their tax-exempt status automatically revoked if they have failed to file a necessary return or notice for a period of three years consecutively.