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The coronavirus-linked limitations on in-office work and related staffing shortages have led to significant delays with the IRS’ processing of certain companies’ employer identification number (“EIN”) applications. In summary, Harvard Business Services (“Harvard”, “we” or “us”) and other Registered Agents and service providers cannot submit EIN applications for Delaware companies that (1) are formed by non-US persons without a social security number, and (2) do not have a U.S. address (“Non-U.S. Companies”).
With very few exceptions, anyone forming a U.S. business should obtain an EIN by applying with the IRS. A newly formed business needs an EIN to open bank accounts, take out loans, hire employees, and pay taxes, among other things.
The IRS requires that a “Responsible Party” who is in a senior or control position with the applying company sign the EIN application, which Harvard Business Services normally files either online or by fax. If the Responsible Party does not have a (1) U.S. social security number and (2) a physical address in the U.S, the application ordinarily is sent via fax. Otherwise, the application for a company with a U.S. address made by a U.S. person with a U.S. social security number is filed online.
The IRS, however, is not accepting faxes and is not answering phone calls with any regularity or predictability. As a result, Harvard Business Services and others are unable to obtain EINs for Non-U.S. Companies at the moment, and, in the case of all applications, are unable to call the IRS to inquire about the status of an application or the issuance of an EIN.
We understand the inconvenience this causes clients. Rest assured, however, that we are pursuing every means possible of submitting applications for Non-U.S. Companies and mitigating delays in online filings. We appreciate your patience and understanding at this time, as we value our clients’ business and pride ourselves on prompt, accurate filings to service our client-companies’ needs as efficiently as possible.
*Disclaimer*: Harvard Business Services, Inc. is neither a law firm nor an accounting firm and, even in cases where the author is an attorney, or a tax professional, nothing in this article constitutes legal or tax advice. This article provides general commentary on, and analysis of, the subject addressed. We strongly advise that you consult an attorney or tax professional to receive legal or tax guidance tailored to your specific circumstances. Any action taken or not taken based on this article is at your own risk. If an article cites or provides a link to third-party sources or websites, Harvard Business Services, Inc. is not responsible for and makes no representations regarding such sourceâ€™s content or accuracy. Opinions expressed in this article do not necessarily reflect those of Harvard Business Services, Inc.
There are 4 comments left for EIN Issuance – Coronavirus-Related Delays and IssuesTim Collins said: Friday, September 25, 2020
Hello, Has IRS resumed operations?HBS Staff replied: Monday, September 28, 2020
Yes, all operations related to EIN issuance are resumed, but they are still experiencing a significant backlog. EIN orders that were submitted by fax are still delayed by several weeks at the current time.Mariano said: Thursday, May 21, 2020
Hi, is there anything new or is the IRS still not responding to EIN requests? The EIN is essential to create a bank account and work with my company. Thanks.HBS Staff replied: Thursday, May 21, 2020
We definitely understand the frustration with having to wait for the EIN number. We have created a temporary page here - https://www.delawareinc.com/ein-status/ - where will we post updates as soon as we are notified by the IRS.Robin T said: Monday, May 11, 2020
I received confirmation of filing my EIN, from Harvard Business Services. However I have not received my CP-575 and it's been almost two months. Do you know if this is related to Covid-19? I am unable to call and obtain the substitute form for certifying my EIN. I am unable to open new business accounts, obtain funding, and many other things without the EIN.HBS Staff replied: Monday, May 11, 2020
Yes, this is most likely due to Covid-19. The IRS is not currently accepting phone calls or receiving faxes and we have not been notified of when they plan to resume normal operations. We apologize for the inconvenience. Please feel free to call us or emai our filings team (firstname.lastname@example.org) for additional questions or information.Samson Yeanay said: Sunday, May 10, 2020
Thanks for the message. I understand the difficulties your faced with. However, I want to know how long this delay will last for? Thanks.HBS Staff replied: Monday, May 11, 2020
Unfortunately, we don't know how long the delay will last. The IRS has not provided any guidance to us on when we should expect them to resume processing faxed orders. If you use our service to apply for an EIN, we will get your number as soon as possible.