What Does Error 101 Mean When Applying for an EIN?
Facing a technical obstacle during your online EIN application? Uncover the reason behind a common issue and find practical guidance to move forward smoothly.
An Employer Identification Number (EIN) is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities. This identifier is used for various tax-related purposes, similar to how a Social Security Number identifies an individual. Businesses require an EIN for activities such as filing tax returns, opening business bank accounts, and applying for business licenses.
Understanding Error 101
Error 101 indicates that the IRS system has identified a business entity name that is either identical or too similar to one already in its records. This occurs because the IRS conducts a nationwide check of business names, meaning a name unique within a state might still conflict with an existing entity elsewhere.
This error can occur if an EIN has already been assigned to the business entity from a previous application. It also appears if a prior EIN application for the same entity is still being processed by the IRS. Multiple individuals attempting to apply for an EIN for the same business simultaneously can also trigger this error.
Resolving Error 101
When encountering Error 101, first verify if an EIN has already been issued. Check existing business documents or contact former accountants or business partners. You can also call the IRS Business and Specialty Tax Line to confirm your EIN, as there is no public online lookup tool.
If a recent EIN application was submitted, the system might not have fully processed it, leading to the error when a new application is attempted. Online applications typically provide an EIN immediately, but fax applications can take about four business days and mailed applications around four weeks. Wait a reasonable period, typically a few days to a week, after a submission before taking further action.
If no existing or pending EIN is found, or if the waiting period passes without resolution, direct contact with the IRS is the next step. You can reach the IRS Business and Specialty Tax Line at 1-800-829-4933, available Monday through Friday from 7 a.m. to 7 p.m. local time.
When calling, be prepared to provide specific information like the business name, address, application date, and the exact error message received. The IRS representative may advise submitting Form SS-4 by mail or fax for manual review, often requiring a copy of your business formation documents.