Obtaining a federal tax id/EIN for Student Organizations
Any student group that will raise money and, therefore, spend money, will need to maintain proper financial accounts for the group. These accounts should not be the same as any one individual’s account and should be set up by applying for a Tax ID or EIN specific to the group. Each taxpayer must have a Federal Employer Identification Number (EIN), also known as a Taxpayer Identification Number (TIN). Any financial accounts created or maintained for the organization should be managed under this number.
What is a Federal Tax ID Number/EIN?
The Federal Tax ID Number (also known as the Employer Identification Number or EIN) is a number used to identify a business or other organization by the credit union and the IRS. Student organizations wishing to open an account must apply for an Employee Identification Number (EIN). Organizations should not open a checking account using an individual’s social security number. The financial burden of that account then rests with that individual and they become responsible for claiming any interest accrued on that account on their own taxes. They also become responsible for the account if there is a problem with it.
Why does or organization need a Federal Tax ID Number/EIN?
Your organization needs this number to open an account with the Credit Union. Additionally, obtaining and EIN helps to ensure the IRS will not make any of an organization’s members personally responsible for taxes on revenue that the organization has earned.
Can we use the University’s Tax ID Numbre/EIN?
Recognition by the University does not imply tax-exempt status and student organizations are not allowed to use the University’s EIN number or non-profit status. Student organizations are independent entities responsible for their own finances and establishing and maintaining their tax status with the IRS.
Applying for a tax id / Employer Identification Number
- Go to the online EIN Application at the IRS website
- Read instructions and click on “Apply Online Now”
- Read instructions and click on “Begin Application”
- Scroll to bottom of list and select on “View Additional Types including Nonprofit/Tax-Exempt Organizations,” click “Continue”
- Choose either “Community or Volunteer Group” or “Social or Savings Club” depending on which best describes your group. Click “Continue”
- Read description to confirm your selection. Click “Continue”
- Fill out remainder of required information
- Print out and retain a copy of your confirmation. Your current and future officers will need this document for tax filing purposes. Once you have received a Federal ID Number, keep a record of it in your organization’s permanent files.
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