How to Verify a Federal ID Number
A Federal ID number---sometimes referred to as a Social Security Number (or SSN, used for individuals) or an Employer Identification Number (or EIN, used for companies)---is used for tax and other tracking purposes. If you run a business, it is a good idea to verify the Federal ID number of any individual or company whom you pay money to, whether it is in a contractor or employee role. Fortunately, there are several ways in which you can verify whether a Federal ID number is legitimate or not.
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Instructions
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Use an online search tool, such as the free tool provided by www.KnowX.com or www.FEINSearch.com to look up the Federal ID number for both individuals and businesses. To perform a search on www.KnowX.com, you will need to know the person or company's name, Federal ID Number and the state in which they live or are registered. To conduct a search on www.FEINSearch.com, the person or business must have registered with that website. However, all you need to look them up is the name of the individual or business and the Federal ID number. Both of these services are free and easy to use.
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Call the IRS directly, and ask an IRS agent whether the Federal ID number you were given is legitimate or not. The toll-free IRS phone number for these inquiries is 1-877-829-5500 and can be reached during normal business hours.
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Pay for access to a higher-tiered search website, such as www.AssetSearches.com. This company, and others like it, allow you to conduct online Federal ID number and records searches for a fee, which you can pay with a credit card. The advantage to this type of search (over a free search) is that you can get a lot more information about the person or company, which can be helpful if you want to perform a background check.
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Tips & Warnings
You should always gather and verify a Federal ID Number, business or individual name, and other relevant information before signing any contracts or paying the individual or business any money. Federal law requires that you keep records about the people you are paying, regardless what type of arrangement you have with them, so that taxes and other items can be properly accounted for.
