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July 14, 2022

Navigate Federal EIN Applications: Key Information

What all do you know about the federal employer identification number? Who requires it? Who doesn’t need it? Will you be able to function in your respective sector if you do not have your EIN? Let’s discover some of the most important facts about the federal EIN application right away.

1. What Is An EIN Number?

The EIN is also known as the employer identification number in layman’s terms. The federal EIN is used to identify businesses.

The 9-digit series helps IRS to keep track of the taxes that have been filed by any business entity. It is somewhat similar to your social security number but has a lot of other uses and applications. It applies to an enterprise or a company rather than an individual.

You will need to apply with the IRS with your social security number when you apply for your employer identification number. This means that you are connected to the business and will be responsible for all its dealings.

You as the owner will be responsible for overseeing the operations of the business and the movement of all its funds and assets as well.

2. What Is The EIN Used For?

The EIN or the employer identification number has several uses such as:

  • With the help of this number, all the essential tax-related details about a company can be made available on one single platform
  • Under the Income Tax Act, this number facilitates identifying assets
  • If you run a business or are in trade, manufacturing, sale, or export of goods and services, you will require this number
  • All your intrastate and interstate transactions can be streamlined because all your information will be in one place
  • If there happen to be two businesses with similar names, the revenue department will be able to distinguish between the two using this number

3. What Does An EIN Number Look Like?

Your employer identification number looks somewhat like your social security number. But it is 9 digits long and is assigned by the federal government. The typical format is XX-XXXXXXX.

4. How Much Does An EIN Cost?

You can contact DOT Compliance Group to know the updated costs.

There are several ways through which you can obtain your employer identification number. However, it is advised that you should get in touch with your third-party administrator for the same.

Applying for it all by yourself and going through the entire procedure can take a lot of time and may be a little too complicated.

You will have to take care of the following requirements if you want to obtain your employer identification number:

  • You must have a legal business structure already formed such as a sole proprietorship, a partnership firm, a corporation, or a trust
  • Your business must be located in the United States or any of its territories
  • You must also have a valid taxpayer identification number
  • You can either have a social security number or an ITIN
  • Once your application is complete and submitted, you will receive your EIN immediately

5. Do EIN Numbers Expire?

No. Your federal EIN does not expire. Once it has been issued to an entity it does not get re-issued.

6. Do You Need A New EIN Number Every Year?

No. Generally, there is no such thing as acquiring a new EIN every year. However, you will need a new Employer Identification Number if the ownership of your company has changed.

If you have decided to change the structure of your enterprise, you may have to apply for a new number. If you decide to change the name of your company, you may NOT obtain a new EIN.

7. How To Apply For An EIN Number?

Applying for your EIN number is very easy. It is a free service provided by the Internal Revenue Service. There are four ways to apply for your employer identification number.

You can apply online, apply through fax, apply via mail, and apply through a telephone call. In any case, you will receive your federall EIN number almost immediately.

Nevertheless, it is always advisable to seek the assistance of a dot compliance manager to handle the task at hand. By doing so, you can avoid the hassle of filling out complicated forms or trying to understand the complex requirements of your employer identification number application.

Your TPA will be able to do that without you having to do anything at all.

8. How Long Does It Take To Get An EIN Online?

Once you have applied for your employer identification number online, you can expect to receive it almost immediately. Additionally, if you choose to complete the form SS4 and fax it to the service, you can expect a response within approximately one week.

9. How Can I Get A Copy Of My EIN Confirmation Letter?

You can ask your third-party administrator to get in touch with the IRS directly. They will request a replacement confirmation letter. This is the 147C letter. You will get this for you on your behalf from the IRS.

So there you go. Now you know plenty of things about the federal EIN application. Just get in touch with your third-party administrator and ask them to do the needful.

FAQ

What Happens If You Fail a DOT Inspection?

If the vehicle or driver is deemed unsafe, they may be placed out of service, meaning the vehicle cannot operate until all violations are properly corrected.

Who decides which level of inspection to perform?

Both the Commercial Vehicle Safety Alliance (CVSA) and the Federal Motor Carrier Safety Administration have a part in DOT inspection levels. The CVSA develops the criteria and sets the procedures for every inspection level. The FMCSA establishes overall regulations and determines which vehicles must be inspected.

How often do DOT inspections happen?

DOT inspections can happen at any time. They most commonly happen during roadside stops and weigh stations. Carriers with higher risk, poor safety records, or hazardous material may be inspected more frequently.

What documents are required during an inspection?

Documents required during an inspection include but may not be limited to:

  • State driver’s license or commercial driver’s license
  • Medical examiner’s certificate
  • Record of duty status
  • Vehicle registrations
  • Periodic inspections document for all vehicles being operated
  • Shipping papers or bills of lading
  • Information for hazardous materials being transported
  • Proof of insurance

What are common DOT inspection violations?

According to the FMCSA, the 5 most cited roadside violations are:

  1. False Report of Driver’s Record of Duty Status: log falsification providing inaccurate or intentionally altered duty-status information.
  2. No Record of Duty Status (ELD Required): using a commercial vehicle without the required electronic logging device or valid time records.
  3. Inoperable Required Lamp: crucial lights (headlights, brake lights, turn signals, etc.) are not functioning properly.
  4. Operating a Commercial Motor Vehicle Without a Commercial Driver’s License (CDL)
  5. Operating a Commercial Motor Vehicle Without Proof of a Periodic Inspection: failure to meet FMCSA the maintenance standards of a required annual inspection.

Why is updating VMT important for compliance?

VMT is tracked to determine fuel tax obligations (Vehicle Miles Traveled Tax) used for road maintenance and improvements. Trucking companies must keep accurate records of VMT to ensure they pay the correct amount of taxes.

How often should VMT be updated?

For motor carriers VMT must be updated every two years along with the MCS-150 form for the Biennial Update.

Can VMT be tracked automatically with technology?

Yes, Electronic Legging Devices (ELDs), Fleet Management Apps, and Mileage Tracking Software are all technological advancements that can simplify the process of VMT tracking.

How does VMT affect taxes and fuel reporting?

Accurate VMT records help document mileage for business-related tax deductions, ensuring compliance with IRS regulations. It also supports fuel tax reporting by tracking the miles each vehicle travels in different jurisdictions, which is essential for state and federal fuel tax calculations. Proper tracking reduces errors, prevents penalties, and provides a clear record of operational costs.

How do I know when my Biennial Update is due?

  • Your filing schedule depends on the last two digits of your USDOT number. The last digit corresponds with what month the form needs to be filed in. January is 1, February is 2, March is 3, etc. The next to last digit determines the year (odd-numbered year or even numbered year). For example, DOT number 1234567 files their biennial update in July (7) of every even year (6). Contact us today to see if you’re due.

Does the Biennial Update cost money to file?

While you can file your Biennial Update yourself for no cost through FMCSA. The process can often be confusing and time-consuming. Our team can handle your filing for you, simplifying the process for you.

Do intrastate carriers need to file the update?

Yes, even if carriers stay within state lines, a biennial update is still needed for their USDOT number.

What happens if I miss my filing deadline?

  • Failure to complete biennial update to FMCSA can be subject to fines with a maximum penalty of $10,000. If your update is past due, you can still file it to restore your compliance status. Contact us today to file your form! https://dotcompliancegroup.com/bu-update/ 

What are the new FMCSA rules in 2025?

  1. Civil Penalty Amount Increases
  2. Drug & Alcohol Clearinghouse Becomes Exclusive Source for checking driver history.
  3. ELD Technology Required
  4. SMS (Safety Measurement System) Modernization
  5. Crash Preventability Determination Program Expanded

When do the 2025 FMCSA regulations take effect?

The confirmed dates these regulations take effect is May 30, June 23, October 1, 2025.

How can trucking companies prepare for these changes?

Regularly reviewing your Safety Measurement System (SMS) scores and maintaining personal checklists for inspections, driver qualification files, and drug and alcohol testing helps catch issues before they affect audits. Partnering with DOT Compliance Group streamlines filings, reporting, and ongoing monitoring, taking the guesswork out of FMCSA regulations and keeping your operation audit-ready year-round.

What Triggers a DOT Compliance Review?

A DOT compliance review is triggered when FMCSA wants to ensure a carrier is following safety regulations. Common triggers include high SMS safety scores, a history of crashes or violations, and previous noncompliance. Staying proactive with accurate records, driver files, and regular internal audits helps reduce the likelihood of a review.

Where can I get help with FMCSA filings?

DOT Compliance Group can assist with any help or questions you may have about FMCSA filings. Call 972-476-9962.

How long are violations kept on record?

According to the Clearinghouse rules, drug and alcohol violations remain in the FMCSA Clearinghouse for five years, provided all requirements (such as completing the return‑to‑duty process) have been met before that period ends.

What if an employer makes a mistake in reporting?

In practice, correcting an employer reporting error typically involves identifying the mistake in the database and then submitting a request for correction through the Clearinghouse portal or FMCSA procedures, so the record reflects accurate information. 

What are the penalties for non-compliance?

FMCSA rules allow civil penalties for non‑compliance, and separate authorities note that employers who fail to meet Clearinghouse requirements may face civil fines or criminal penalties under federal regulations.

Do trucking companies check the Clearinghouse?

Yes — trucking companies check the Clearinghouse as part of their hiring and compliance process. The FMCSA Clearinghouse is designed so employers can search a driver’s drug and alcohol violation records before permitting them to operate a commercial vehicle. Employers are required to conduct these queries for both prospective and current drivers as part of compliance.

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