Common Reasons Why Your EIN Application Gets Rejected

Oct. 25, 2025, 4:12 p.m.
Applying for an Employer Identification Number (EIN) with the IRS is usually a quick and simple process — but sometimes, applications get delayed or even rejected. Understanding the most common reasons can help you avoid frustration and get your EIN successfully issued the first time.
Common Reasons Why Your EIN Application Gets Rejected

1. Incomplete or Incorrect Information

One of the most frequent causes of EIN rejection is missing or inaccurate information on Form SS-4.

  • Incorrect legal name or spelling errors

  • Wrong entity type (e.g., checking LLC instead of Corporation)

  • Missing responsible party information
    Always double-check the form before submission — even small mistakes can trigger delays.

2. Business Name Already in Use

If your business name conflicts with another existing entity in the IRS database or state registration system, the application might be flagged.
Tip: Verify your business name availability through your state’s Secretary of State before applying for an EIN.

3. Invalid or Missing Responsible Party Information

The IRS requires you to list a “responsible party” — usually the owner, managing member, or principal officer — with a valid SSN, ITIN, or EIN.
If the responsible party’s information is invalid, missing, or mismatched, your EIN application will be rejected.

4. Foreign Applicants Without Proper Identification

Foreign individuals and entities without an SSN or ITIN can still obtain an EIN — but only by properly indicating that they’re a foreign applicant and submitting the form via fax, mail, or phone (not online).
Failing to follow this process or leaving identification fields blank often leads to rejection.

5. Duplicate EIN Applications

If you’ve already submitted an EIN application for the same business entity, the IRS will reject any duplicate or overlapping applications.
Tip: Wait until the first application is fully processed before resubmitting or calling the IRS Business & Specialty Tax Line.

6. Business Entity Structure Errors

Choosing the wrong business type (like checking “corporation” when you meant “LLC”) can cause confusion between federal and state filings.
Make sure your EIN application matches the structure you used when registering your business with your state or forming your entity.

7. Technical or System Errors

Sometimes, rejections aren’t your fault. IRS online systems may experience temporary outages or mismatches between databases. If everything appears correct, try again later or contact the IRS directly for clarification.

How to Avoid Rejection

  • Double-check all entries on Form SS-4 before submission.

  • Ensure consistency between your state business registration and your EIN application.

  • Provide accurate, verifiable responsible party details.

  • For foreign applicants, submit via fax or mail using the proper instructions.

  • Apply only once per entity.

If Your EIN Application Is Rejected

You can contact the IRS Business & Specialty Tax Line at 1-800-829-4933 (Monday–Friday, 7 AM to 7 PM local time).
They can help identify the issue and guide you through resubmitting your application correctly.

Final Tip

Most EIN application rejections are preventable with careful attention to detail. Take a few extra minutes to review your form before submitting — it can save you days or weeks of delay in launching your business operations.